On March 19, 2025, Precigen Inc (PGEN, Financial) released its 8-K filing detailing the financial results for the full year 2024. Precigen Inc, a biotechnology company, focuses on developing synthetic biology solutions and gene programs applicable across diverse markets. The company operates through its Biopharmaceuticals and Exemplar segments, collaborating with industry experts to commercialize its technologies.
Performance Overview and Challenges
Precigen Inc reported a net loss of $126.2 million, or $(0.47) per share, for 2024, compared to a net loss of $95.9 million, or $(0.39) per share, in 2023. This result aligns with the annual estimated earnings per share of -0.47. Total revenues decreased by $2.3 million, or 37%, primarily due to reduced product and service volumes at Exemplar. The company's revenue of $4.13 million matched the annual estimate.
The increase in net loss is attributed to higher research and development expenses, which rose by $4.5 million, or 9%, due to costs associated with the PRGN-2012 clinical trial and commercial readiness efforts. Additionally, the company faced a $5.8 million impairment charge related to its Exemplar subsidiary and $34.5 million in impairment charges due to the suspension of ActoBio's operations.
Financial Achievements and Industry Impact
Despite financial challenges, Precigen Inc achieved significant milestones in 2024. The FDA granted priority review to the company's Biologics License Application (BLA) for PRGN-2012, a gene therapy for recurrent respiratory papillomatosis (RRP), with a target action date set for August 27, 2025. This development positions Precigen to transition from a clinical to a commercial stage company, potentially generating product-related revenue.
“FDA approval for PRGN-2012 would fundamentally change Precigen, enabling the transition from clinical to commercial stage with the real and imminent potential to begin realizing product sales this year,” stated Helen Sabzevari, PhD, President and CEO of Precigen.
Key Financial Metrics and Analysis
Precigen ended 2024 with $97.9 million in cash, cash equivalents, and investments, extending its cash runway into 2026. This financial stability is crucial as the company prepares for the potential commercial launch of PRGN-2012. The company's strategic focus on PRGN-2012 resulted in increased SG&A expenses by $0.9 million, or 2%, due to commercial readiness costs and workforce reductions.
Other income increased by $3.6 million, or 106%, primarily from an $8.5 million gain on the sale of intellectual property rights. However, the company faced a reclassification of cumulative translation losses of $2.9 million and a reduction in interest income by $1.8 million.
Conclusion
Precigen Inc's 2024 financial results reflect the challenges and strategic advancements typical in the biotechnology industry. While the company faces increased losses and decreased revenues, its focus on PRGN-2012 and the potential FDA approval could significantly impact its future financial performance. Investors and stakeholders will closely monitor the company's progress as it navigates the transition to a commercial stage entity.
Explore the complete 8-K earnings release (here) from Precigen Inc for further details.
