GERMANTOWN, MD – Precigen, Inc. (NASDAQ:PGEN), a biotechnology company specializing in pharmaceutical preparations, has announced the grant of performance stock units (PSUs) to key employees, including named executive officers.
The Compensation and Human Capital Management Committee of Precigen's Board of Directors approved the grants on Wednesday, aiming to align long-term shareholder value with executive compensation.
The PSUs, awarded under the company's 2023 Omnibus Incentive Plan, are contingent upon meeting specific operational milestones related to the company's investigational product PRGN-2012.
The vesting of these units depends on two achievements: a good faith submission of a complete Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA) and the subsequent approval of the BLA by the FDA. These milestones must be reached by December 31, 2026, for the PSUs to vest.
If the company meets these milestones within the specified timeframe, the PSUs will vest in two equal 50% installments, converting into shares of Precigen's common stock. The vesting is also subject to the executives' continued employment through the milestone achievement dates, with specific provisions for termination scenarios.
In cases of termination without cause, for good reason, or due to death or disability, the PSUs may still vest upon milestone achievement or a change in control, with certain prorated conditions. However, if the milestones are not met by the end of 2026, any remaining PSUs will be forfeited.
The following executives received target PSUs: Dr. Helen Sabzevari with 1,650,000 units, Harry Thomasian and Rutul Shah with 250,000 units each, and Donald Lehr with 108,000 units.
The detailed terms of the PSU grants will be included in the company's upcoming Quarterly Report on Form 10-Q for the quarter ending September 30, 2024. This news is based on a press release statement from Precigen, Inc. and reflects the company's efforts to incentivize the achievement of significant regulatory milestones in its product development pipeline.
In other recent news, Precigen Inc. has made significant strides in its PRGN-2012 gene therapy program for recurrent respiratory papillomatosis (RRP), with over half of the patients showing a complete response and a significant reduction in surgeries. H.C. Wainwright has adjusted its price target for Precigen's shares to $4.00, maintaining a Buy rating. This follows the company's successful Phase 1/2 study of PRGN-2012, which achieved primary and secondary endpoints.
The company is on track to submit a rolling Biologics License Application (BLA) for accelerated approval in the second half of 2024. Analysts at H.C. Wainwright anticipate swift enrollment for the confirmatory Phase 3 study, given the compelling data from the pivotal study and the significant need for treatment in this rare disease area. The firm's projections include an expectation of PRGN-2012 generating risk-adjusted revenue in 2026, estimated at $106 million, and growing to $521 million by 2030.
In preparation for potential commercialization in 2025, Precigen has appointed Phil Tennant as Chief Commercial Officer and initiated a confirmatory trial. The company has also implemented strategic steps such as workforce reduction and cost-saving measures to prioritize PRGN-2012.
These recent developments are part of Precigen's strategic focus on PRGN-2012, and the company has raised $31.4 million through an equity issuance to extend its cash runway into early 2025.
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