Precigen (NASDAQ:PGEN) Releases Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Precigen reported quarterly EPS of $0.08, beating the $0.06 consensus, while revenue of $74.15 million also exceeded expectations of $71.55 million.
• PAPZIMEOS revenue climbed about 37% quarter over quarter to $72.9 million, and Precigen reported $35.8 million in net income and $11.9 million in operating cash flow.
• Management sees PAPZIMEOS as well positioned, but anticipates a new competitor in the RRP market; Precigen is also pursuing expansion through an EMA review and pipeline development.

Precigen (NASDAQ:PGEN - Get Free Report) released its quarterly earnings results on Wednesday. The biotechnology company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.06 by $0.02, FiscalAI reports. Precigen had a positive return on equity of 423.75% and a negative net margin of 183.98%. The business had revenue of $74.15 million during the quarter, compared to analysts' expectations of $71.55 million.

Here are the key takeaways from Precigen's conference call:

• PAPZIMEOS continued its rapid commercial ramp: Q3 net product revenue was $72.9 million, up about 37% from Q2, with more than 500 patients having started treatment and coverage spanning over 315 million U.S. lives.
• Precigen reached profitability and positive operating cash flow: The company reported Q3 net income of $35.8 million and $11.9 million in cash from operations, ahead of its prior cash-flow timeline; it ended the quarter with $51 million in cash and investments plus $96.5 million in receivables.
• Competition is approaching in the RRP market. Management said it anticipated a new entrant and believes PAPZIMEOS’s efficacy, safety, durability, and established commercial network position it favorably, but the competitor’s launch could challenge its market leadership.
• Precigen is pursuing growth beyond the current U.S. adult indication: The EMA is reviewing its PAPZIMEOS application, a redosing study is enrolling with data expected in 2028, and the FDA’s Platform Technology Designation may help advance the AdenoVerse pipeline, including PRGN-2009.

Precigen Price Performance

Shares of Precigen stock traded down $0.20 on Wednesday, hitting $5.05. The company's stock had a trading volume of 10,440,708 shares, compared to its average volume of 4,842,980. Precigen has a 52-week low of $3.04 and a 52-week high of $8.98. The company has a quick ratio of 3.89, a current ratio of 4.58 and a debt-to-equity ratio of 2.15. The firm has a fifty day moving average price of $7.14 and a 200-day moving average price of $5.28. The company has a market capitalization of $1.80 billion, a P/E ratio of -4.86 and a beta of 1.01.

Insider Transactions at Precigen

In other Precigen news, COO Rutul R. Shah sold 15,342 shares of Precigen stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $7.50, for a total transaction of $115,065.00. Following the completion of the transaction, the chief operating officer owned 468,865 shares in the company, valued at approximately $3,516,487.50. The trade was a 3.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jeffrey B. Kindler sold 185,000 shares of Precigen stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $7.44, for a total transaction of $1,376,400.00. Following the transaction, the director owned 17,100 shares of the company's stock, valued at approximately $127,224. The trade was a 91.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 267,739 shares of company stock worth $1,975,990. 41.40% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. B. Riley Financial started coverage on shares of Precigen in a research note on Friday, September 25th. They issued a "buy" rating and a $12.00 price objective on the stock. Wall Street Zen downgraded shares of Precigen from a "strong-buy" rating to a "buy" rating in a report on Saturday. Weiss Ratings restated a "sell (d-)" rating on shares of Precigen in a research report on Thursday, October 15th. Zacks Research downgraded shares of Precigen from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Finally, HC Wainwright boosted their price target on Precigen from $14.00 to $18.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $13.67.

Precigen Company Profile

Precigen, Inc is a clinical-stage biotechnology company focused on developing gene and cell therapies for cancer and serious diseases. The company uses its proprietary UltraCAR-T, AdenoVerse, and other gene-engineering platforms to design potential treatments intended to improve the targeting, persistence, and manufacturing of therapeutic cells and genetic medicines.

Precigen's pipeline has included PRGN-2012, an investigational immunotherapy based on a gorilla adenovector for recurrent respiratory papillomatosis, as well as PRGN-2001, an investigational HPV-targeted immunotherapy.

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