Full Press Release Details
Precigen Reports First Quarter 2020 Financial Results
Achieves significant progress in streamlining healthcare operations and reducing operating costs
Maintains guidance for clinical readouts in 2020
Completes reduction in force at MBP Titan to focus resources on healthcare
Received FDA clearance of PRGN-2009 to initiate a Phase 1/2 trial in HPV-positive
GERMANTOWN, MD, May 6, 2020 Precigen, Inc. (Nasdaq: PGEN), a biopharmaceutical company
specializing in the development of innovative gene and cell therapies to improve the lives of patients, today announced first quarter financial results for 2020.
First Quarter Business Highlights:
First Quarter 2020 Financial Highlights:
This is the first full quarter operating as the new Precigen, and we have made tremendous progress in consolidating operations
and adhering to our operating priniciples to deliver value to all stakeholders, said Helen Sabzevari, PhD, President and CEO of Precigen. From a clinical perspective, we are incredibly pleased to receive the third IND clearance for a
Precigen asset in just over one year. From an operational perspective, we ve achieved significant progress in streamlining our healthcare operations. This helps us focus our capital allocation to ensure that we have a solid runway for maximum
First Quarter 2020 Financial Results Compared to Prior Year Period
Total revenues increased $7.3 million over the quarter ended March 31, 2019. Collaboration and licensing revenues increased $4.8 million, or
80%, over the quarter ended March 31, 2019 primarily due to the accelerated recognition of previously deferred revenue upon the mutual termination of a collaboration with Fibrocell Science, Inc., in February 2020. This increase was partially
offset by a decrease in collaboration revenues related to programs that were paused in 2019. Service revenues increased $2.6 million, or 23%, over the quarter ended March 31, 2019 primarily due to increased service revenues at
Precigen s subsidiary, Trans Ova Genetics L.C., due to an increase in services performed for new and existing customers and the expansion of its commercial dairy business.
Research and development expenses decreased $8.0 million, or 30%. Salaries, benefits and other personnel costs decreased $2.1 million, and contract
research organization costs and lab supplies decreased $5.1 million as Precigen narrowed its focus on its primary healthcare programs. Selling, general and administrative expenses decreased $8.0 million, or 26%. Salaries, benefits and
other personnel costs decreased $4.8 million primarily due to a reduction of corporate employees in the first quarter of 2020 as Precigen scaled down its corporate functions. Additionally, professional fees decreased $3.6 million primarily
due to the expiration of the services agreement with Third Security, LLC on December 31, 2019.
More information on Precigen s first quarter
financial results will be available in our Quarterly Report on Form 10-Q, which we expect to file by May 11, 2020.
Conference Call and Webcast
Precigen will host a
conference call today Wednesday, May 6th at 4:15 PM ET to discuss the results and provide a general business update. The conference call may be accessed by dialing
1-833-646-0488 (US/Canada toll-free) or 1-918-922-6615 to join the Precigen Conference Call. Participants are asked to dial in 10-15 minutes in advance of the scheduled call time to facilitate timely
connection to the call. Participants may also access the live webcast through Precigen s website in the Events section at https://investors.precigen.com/events/event-details/precigen-first-quarter-2020-financial-results-conference-call.
Precigen: Advancing Medicine with Precision
Precigen (Nasdaq: PGEN) is a dedicated discovery and clinical stage biopharmaceutical company advancing the next generation of gene and cell therapies using
precision technology to target urgent and intractable diseases in our core therapeutic areas of immuno-oncology, autoimmune disorders, and infectious diseases. Our technologies enable us to find innovative solutions for affordable biotherapeutics in
a controlled manner. Precigen operates as an innovation engine progressing a preclinical and clinical pipeline of well-differentiated unique therapies toward clinical
Precigen, AdenoVerse, UltraCAR-T, and Advancing Medicine with Precision are trademarks of Precigen and/or its affiliates. Other names may be trademarks of their respective owners.
Cautionary Statement Regarding Forward-Looking Statements
Some of the statements made in this press release are forward-looking statements. These forward-looking statements are based upon Precigen s current
expectations and projections about future events and generally relate to plans, objectives, and expectations for the development of Precigen s business, including the timing, pace and progress of preclinical and clinical trials and discovery
programs, potential benefits of platforms and product candidates including in comparison to competitive platforms and products, and future plans for
Precigen s remaining non-healthcare assets. Although management believes that the plans, objectives and results reflected in or suggested by these
forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties, and actual future results may be materially different from the plans, objectives and expectations expressed. These risks and uncertainties
include, but are not limited to, (i) the impact of the COVID-19 pandemic on our businesses, operating results, cash flows and/or financial condition, (ii) ongoing transition efforts following
Precigen s recent divestment of several assets and businesses; (iii) Precigen s strategy and overall approach to its business model, its recent efforts to realign its business, and its ability to exercise more control and ownership
over the development process and commercialization path; (iv) the ability to successfully enter new markets or develop additional products, including the expected timing and results of investigational studies and preclinical and clinical
trials, including any delays or potential delays as a result of the COVID-19 pandemic, whether with its collaborators or independently; (v) the ability to successfully enter into optimal strategic
relationships with its subsidiaries and operating companies that it may form in the future; (vi) the ability to hold or generate significant operating capital, including through partnering, asset sales and operating cost reductions;
(vii) actual or anticipated variations in operating results; (viii) actual or anticipated fluctuations in competitors or collaborators operating results or changes in their respective growth rates; (ix) cash position;
(x) market conditions in Precigen s industry; (xi) the volatility of Precigen s stock price; (xii) the ability, and the ability of collaborators, to protect Precigen s intellectual property and other proprietary rights
and technologies; (xiii) the ability, and the ability of collaborators, to adapt to changes in laws or regulations and policies, including federal, state, and local government responses to the COVID-19
pandemic; (xiv) outcomes of pending and future litigation; (xv) the rate and degree of market acceptance of any products developed by Precigen, its subsidiaries, collaborations or joint ventures; (xvi) the ability to retain and
recruit key personnel; (xvii) expectations related to the use of proceeds from public offerings and other financing efforts; (xviii) estimates regarding expenses, future revenue, capital requirements and needs for additional financing; and
(xix) the challenges inherent in leadership transitions. For further information on potential risks and uncertainties, and other important factors, any of which could cause Precigen s actual results to differ from those contained in the
forward-looking statements, see the section entitled Risk Factors in Precigen s most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
For more information, contact:
Precigen, Inc. and Subsidiaries
Consolidated Balance Sheets
| (Amounts in thousands) | March 31, 2020 | December 31, 2019 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 37,840 | $ | 65,793 | ||||
| Short-term investments | 111,332 | 9,260 | ||||||
| Receivables | ||||||||
| Trade, net | 19,376 | 20,650 | ||||||
| Related parties, net | 252 | 600 | ||||||
| Other | 351 | 4,978 | ||||||
| Inventory | 14,636 | 16,097 | ||||||
| Prepaid expenses and other | 5,596 | 6,444 | ||||||
| Current assets held for sale | 110,821 | |||||||
| Total current assets | 189,383 | 234,643 | ||||||
| Property, plant and equipment, net | 59,627 | 60,969 | ||||||
| Intangible assets, net | 65,489 | 68,346 | ||||||
| Goodwill | 63,703 | 63,754 | ||||||
| Investments in affiliates | 1,108 | 1,461 | ||||||
| Right-of-use assets | 24,036 | 25,228 | ||||||
| Other assets | 1,326 | 1,362 | ||||||
| Total assets | $ | 404,672 | $ | 455,763 | ||||
| Current liabilities | ||||||||
| Accounts payable | $ | 4,777 | $ | 5,917 | ||||
| Accrued compensation and benefits | 7,209 | 14,091 | ||||||
| Other accrued liabilities | 9,972 | 12,049 | ||||||
| Deferred revenue | 11,141 | 5,697 | ||||||
| Lines of credit | 1,205 | 1,922 | ||||||
| Current portion of long-term debt | 31,886 | 31,670 | ||||||
| Current portion of lease liabilities | 4,308 | 4,182 | ||||||
| Related party payables | 139 | 51 | ||||||
| Current liabilities held for sale | 47,333 | |||||||
| Total current liabilities | 70,637 | 122,912 | ||||||
| Long-term debt, net of current portion | 188,730 | 186,321 | ||||||
| Deferred revenue, net of current portion | 32,877 | 48,136 | ||||||
| Lease liabilities, net of current portion | 22,414 | 23,849 | ||||||
| Deferred tax liabilities | 2,785 | 2,834 | ||||||
| Total liabilities | 317,443 | 384,052 | ||||||
| Commitments and contingencies | ||||||||
| Total shareholders equity | ||||||||
| Common stock | ||||||||
| Additional paid-in capital | 1,797,450 | 1,752,048 | ||||||
| Accumulated deficit | (1,708,867 | ) | (1,652,869 | ) | ||||
| Accumulated other comprehensive loss | (1,354 | ) | (27,468 | ) | ||||
| Total shareholders equity | 87,229 | 71,711 | ||||||
| Total liabilities and shareholders equity | $ | 404,672 | $ | 455,763 |
Precigen, Inc. and Subsidiaries
Consolidated Statements of Operations
| Three months ended | ||||||||
| March 31, | ||||||||
| (Amounts in thousands, except share and per share data) | 2020 | 2019 | ||||||
| Revenues | ||||||||
| Collaboration and licensing revenues | $ | 10,721 | $ | 5,971 | ||||
| Product revenues | 4,961 | 4,837 | ||||||
| Service revenues | 13,946 | 11,383 | ||||||
| Other revenues | 210 | 394 | ||||||
| Total revenues | 29,838 | 22,585 | ||||||
| Operating Expenses | ||||||||
| Cost of products | 6,089 | 7,722 | ||||||
| Cost of services | 7,536 | 7,092 | ||||||
| Research and development | 18,891 | 26,938 | ||||||
| Selling, general and administrative | 23,018 | 31,049 | ||||||
| Total operating expenses | 55,534 | 72,801 | ||||||
| Operating loss | (25,696 | ) | (50,216 | ) | ||||
| Other Expense, Net | ||||||||
| Unrealized and realized appreciation in fair value of equity securities and preferred stock, net | 449 | |||||||
| Interest expense | (4,592 | ) | (4,305 | ) | ||||
| Interest and dividend income | 673 | 1,361 | ||||||
| Other income, net | 64 | 546 | ||||||
| Total other expense, net | (3,855 | ) | (1,949 | ) | ||||
| Equity in net loss of affiliates | (351 | ) | (748 | ) | ||||
| Loss from continuing operations before income taxes | (29,902 | ) | (52,913 | ) | ||||
| Income tax benefit (expense) | (40 | ) | 13 | |||||
| Loss from continuing operations | $ | (29,942 | ) | $ | (52,900 | ) | ||
| Loss from discontinued operations, net of income taxes | (26,056 | ) | (9,236 | ) | ||||
| Net loss | $ | (55,998 | ) | $ | (62,136 | ) | ||
| Net loss attributable to the noncontrolling interests | 1,427 | |||||||
| Net loss attributable to Precigen | $ | (55,998 | ) | $ | (60,709 | ) | ||
| Amounts Attributable to Precigen | ||||||||
| Net loss from continuing operations attributable to Precigen | $ | (29,942 | ) | $ | (51,473 | ) | ||
| Net loss from discontinued operations attributable to Precigen | (26,056 | ) | (9,236 | ) | ||||
| Net loss attributable to Precigen | $ | (55,998 | ) | $ | (60,709 | ) | ||
| Net Loss per Share | ||||||||
| Net loss from continuing operations attributable to Precigen per share, basic and diluted | $ | (0.19 | ) | $ | (0.34 | ) | ||
| Net loss from discontinued operations attributable to Precigen per share, basic and diluted | (0.16 | ) | (0.06 | ) | ||||
| Net loss attributable to Precigen per share, basic and diluted | $ | (0.35 | ) | $ | (0.40 | ) | ||
| Weighted average shares outstanding, basic and diluted | 160,338,743 | 152,948,058 |