GERMANTOWN, Md. - Precigen, Inc. (NASDAQ:PGEN), a biopharmaceutical company, announced today that it has initiated a public offering of its common stock, aiming to raise $30 million. The company also plans to offer underwriters a 30-day option to purchase up to an additional $4.5 million of common stock. The success of this offering is contingent on market conditions and other factors, and there is no certainty regarding the completion, size, or terms of the offering.
Stifel is serving as the exclusive book-running manager for the offering. This move follows the effectiveness of a shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (SEC) on January 17, 2024. Details of the offering will be available in a preliminary prospectus supplement and accompanying base prospectus to be filed with the SEC, accessible on the SEC's website.
Precigen is focused on developing gene and cell therapies for immuno-oncology, autoimmune disorders, and infectious diseases, aiming to provide innovative and affordable biotherapeutics. The company is working on advancing a pipeline of therapies through preclinical and clinical development.
The company's announcement includes forward-looking statements regarding the potential offering and its terms. These statements are subject to various factors that could cause actual results to differ, including market conditions and the satisfaction of customary closing conditions. The company cautions that there is no assurance the offering will be completed as anticipated or at all.
In other recent news, Precigen, Inc. has seen significant developments in its gene therapy product, PRGN-2012. The biopharmaceutical company recently appointed Phil Tennant as Chief Commercial Officer, leveraging his extensive experience in the pharmaceutical industry to advance Precigen's commercial objectives. Tennant's appointment comes as Precigen prepares for the potential launch of PRGN-2012, a gene therapy for recurrent respiratory papillomatosis (RRP).
PRGN-2012 has shown promise in recent studies, with 51% of participants experiencing a complete response, requiring no surgeries for RRP in the 12 months following treatment. The company anticipates discussing these results with the FDA as part of a rolling Biologics License Application submission, expected in the second half of 2024.
Investment firm Stifel has responded positively to these developments, upgrading Precigen's price target from $7.00 to $10.00 following the presentation of Phase 2 data for PRGN-2012. JMP Securities has also maintained a "Market Outperform" rating for Precigen, with a price target of $14.00. These recent developments highlight the ongoing progression of Precigen's clinical objectives and its commitment to providing innovative solutions for biotherapeutics.
InvestingPro Insights
Precigen, Inc. (NASDAQ:PGEN) is navigating a challenging financial landscape as it seeks to raise capital through a public stock offering. With a market capitalization of approximately $340.77 million, the biopharmaceutical company's stock price has experienced significant volatility, evidenced by a 13.82% decline over the past week. This volatility reflects broader market sentiment and internal financial metrics that potential investors may want to consider.
The company's financial health shows a mix of strengths and concerns. On the positive side, according to InvestingPro Tips, Precigen holds more cash than debt on its balance sheet, providing some liquidity cushion. However, the company is quickly burning through its cash reserves, which may be a factor driving the current capital raise. Adding to the concerns, two analysts have recently revised their earnings expectations downwards for the upcoming period, and the consensus is that the company will not be profitable this year. These insights are crucial for investors evaluating the potential risk and reward of participating in the offering.
InvestingPro Data further reveals that Precigen's revenue has contracted sharply, with a decline of 76.6% over the last twelve months as of Q1 2024. The company's gross profit margin during the same period was deeply negative at -936.35%, indicating significant challenges in generating profit from its revenues. Moreover, the P/E ratio stands at -3.89, reflecting the market's concerns about the company's profitability.
For investors interested in deeper analysis and more insights, InvestingPro offers additional tips on Precigen. These tips delve into aspects such as sales projections, gross profit margins, and stock price movements, providing a comprehensive understanding of the company's financial position and market performance. With 10 more InvestingPro Tips available, investors can access a detailed analysis at https://www.investing.com/pro/PGEN to inform their investment decisions.
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