On August 14, 2024, Precigen Inc (PGEN, Financial) released its 8-K filing detailing the financial results for the second quarter and first half of 2024. Precigen Inc is a biotechnology company that develops synthetic biology solutions, focusing on gene and cell therapies. The company operates in two segments: Biopharmaceuticals and Exemplar.
Performance and Challenges
Precigen Inc reported a net loss of $58.8 million, or $(0.23) per share, for Q2 2024, significantly higher than the net loss of $20.3 million, or $(0.08) per share, in the same period last year. This result missed the analyst estimate of $(0.09) per share. The company's revenue for the quarter was $0.72 million, falling short of the estimated $1.28 million and representing a 59% decrease from the prior year period.
The increase in net loss was driven by higher research and development (R&D) expenses, which rose by $3.8 million, or 32%, compared to Q2 2023. This increase was primarily due to severance charges related to the shutdown of the ActoBio subsidiary and costs associated with the PRGN-2012 clinical trials. Selling, general, and administrative (SG&A) expenses also increased by $1.0 million, or 11%, due to severance costs and expenses related to PRGN-2012 commercial readiness.
Financial Achievements
Despite the challenges, Precigen Inc made significant strides in its strategic initiatives. The company announced groundbreaking pivotal study data for PRGN-2012 gene therapy, with more than half of RRP patients achieving Complete Response. Additionally, Precigen strengthened its cash position by raising approximately $31.4 million through a public offering of common stock.
“We are all in on PRGN-2012 given the immense unmet need for RRP patients and our groundbreaking pivotal data supporting the potential of what we hope to be the first-ever FDA approved therapy to treat RRP,” said Helen Sabzevari, PhD, President and CEO of Precigen.
Key Financial Metrics
Below is a summary of key financial metrics from the company's earnings report:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $0.72 million | $1.77 million |
| Net Loss | $(58.8) million | $(20.3) million |
| R&D Expenses | $15.7 million | $11.9 million |
| SG&A Expenses | $10.3 million | $9.3 million |
Analysis
Precigen Inc's financial performance in Q2 2024 reflects the company's strategic focus on advancing its lead program, PRGN-2012, despite significant financial challenges. The increase in R&D and SG&A expenses underscores the company's commitment to bringing innovative therapies to market. However, the substantial net loss and revenue decline highlight the financial pressures the company faces.
Looking ahead, Precigen's ability to secure additional funding and successfully commercialize PRGN-2012 will be crucial for its financial stability and growth. The company's strategic reprioritization and recent public offering are steps in the right direction, but continued focus on cost management and revenue generation will be essential.
Explore the complete 8-K earnings release (here) from Precigen Inc for further details.
