Full Press Release Details
Precigen Reports First Quarter 2022 Financial
Results and Business Updates
Fast Track designation received for PRGN-3006 UltraCAR-T , an important milestone for patients with relapsed or refractory
acute myeloid leukemia, a rapidly progressing disease with limited treatment options -
Phase 1b expansion arm initiated for PRGN-3006 UltraCAR-T at Dose Level
3 with lymphodepletion -
Dosing initiated in patients at Dose Level 3 via intravenous infusion with lymphodepletion in the PRGN-3005 UltraCAR-T
Phase 2 study initiated for PRGN-2012 AdenoVerse Immunotherapy as an adjuvant treatment in patients with
recurrent respiratory papillomatosis -
Cash, cash equivalents, short-term and long-term investments totaled $142.1 million as of March 31, 2022 -
Company to host a pipeline update call in the coming months -
May 9, 2022 - 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 2022 financial
results and business updates.
portfolio has been prioritized based on the positive preliminary data we have seen for key programs and we are exploring potential rapid
paths to licensure with the FDA for programs with compelling data in diseases that have a high unmet medical need. The FDA Fast Track
designation recently received for PRGN-3006 UltraCAR-T will help facilitate development and expedite the review process and is an important
milestone for patients with relapsed or refractory acute myeloid leukemia," said Helen Sabzevari, PhD, President and CEO of Precigen.
"As a result of these advancements, we look forward to hosting a call to provide pipeline updates in the coming months."
focused on enhancing our financial position, expanding our financial flexibility, and extending our cash runway to help Precigen achieve
our near-term objectives," said Harry Thomasian Jr., CFO of Precigen. "As the year progresses, we intend to expound
on these initiatives."
2022 Financial Highlights
2022 Financial Results Compared to Prior Year Period
Total revenues increased
$7.5 million, or 31%, from the quarter ended March 31, 2021. Product and service revenues generated by Trans Ova and Exemplar increased
$7.6 million primarily due to higher customer demand for animals and services as a result of stronger beef and dairy industries in the
current year as well as an increase in services performed at Exemplar, offset by a $0.1
million reduction in collaboration and license revenue from the quarter ended March 31, 2021.
products and services improved as a result of the increased revenues, a change in pricing structure for certain customers, and operational
efficiencies that have been gained through improved inventory management offset by increased costs for supplies, drugs, and personnel
Research and development
expenses increased $2.2 million, or 21%, from the quarter ended March 31, 2021. Contract research organization costs and lab supplies
increased $1.6 million with the advancement of the Company's clinical and preclinical programs.
and administrative (SG&A) expenses increased $0.9 million, or 5%, over the three months ended March 31, 2021. Professional fees increased
$1.6 million, primarily due to increased legal fees associated with certain litigation matters. This increase was partially offset with
a decrease in salaries, benefits, and other personnel costs of $1.3 million primarily due to reduced stock compensation in 2022 and reduced
Loss from continuing
operations was $19.3 million, or $(0.10) per basic share, compared to loss from continuing operations of $21.8 million, or $(0.11) per
basic share, in 2021.
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
the most 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 therapies toward clinical proof-of-concept and
Twitter @Precigen, LinkedIn or YouTube.
Precigen, UltraCAR-T, AdenoVerse and Advancing
Medicine with Precision are trademarks of Precigen and/or its affiliates. Other names may be trademarks of their respective
Cautionary Statement Regarding Forward-Looking
Some of the statements made in this press release
are forward-looking statements. These forward-looking statements are based upon the Company's current expectations and projections about
future events and generally relate to plans, objectives, and expectations for the development of the Company's business, including the
timing and progress of preclinical studies, clinical trials, discovery programs and related milestones, the promise of the Company's portfolio
of therapies, and in particular its CAR-T and AdenoVerse therapies. Although management believes that the plans and objectives reflected
in or suggested by these forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties, including
the possibility that the timeline for the Company's clinical trials might be impacted by the COVID-19 pandemic, and actual future results
may be materially different from the plans, objectives and expectations expressed in this press release. The Company has no obligation
to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly
qualified in their entirety by this cautionary statement. For further information on potential risks and uncertainties, and other important
factors, any of which could cause the Company's actual results to differ from those contained in the forward-looking statements, see the
section entitled "Risk Factors" in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with
the Securities and Exchange Commission.
| Investor Contact: Steven Harasym Vice President, Investor Relations Tel: +1 (301) 556-9850 investors@precigen.com |
| Media Contacts: Donelle M. Gregory press@precigen.com Glenn Silver Lazar-FINN Partners glenn.silver@finnpartners.com |
Precigen, Inc. and Subsidiaries
Consolidated Balance Sheets
| (Amounts in thousands) | March 31, 2022 | December 31, 2021 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 40,321 | $ | 42,920 | ||||
| Short-term investments | 71,821 | 72,240 | ||||||
| Receivables | ||||||||
| Trade, net | 24,308 | 20,832 | ||||||
| Related parties, net | 15 | 73 | ||||||
| Other | 543 | 566 | ||||||
| Inventory | 12,730 | 13,261 | ||||||
| Prepaid expenses and other | 5,199 | 6,736 | ||||||
| Total current assets | 154,937 | 156,628 | ||||||
| Long-term investments | 29,914 | 48,562 | ||||||
| Property, plant and equipment, net | 33,583 | 34,315 | ||||||
| Intangible assets, net | 51,427 | 54,115 | ||||||
| Goodwill | 53,613 | 54,148 | ||||||
| Right-of-use assets | 10,963 | 10,900 | ||||||
| Other assets | 1,131 | 1,188 | ||||||
| Total assets | $ | 335,568 | $ | 359,856 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 4,415 | $ | 5,405 | ||||
| Accrued compensation and benefits | 6,052 | 11,223 | ||||||
| Other accrued liabilities | 10,494 | 11,595 | ||||||
| Deferred revenue | 2,669 | 4,442 | ||||||
| Current portion of long-term debt | 355 | 402 | ||||||
| Current portion of lease liabilities | 1,590 | 1,551 | ||||||
| Related party payables | 26 | 27 | ||||||
| Total current liabilities | 25,601 | 34,645 | ||||||
| Long-term debt, net of current portion | 201,112 | 182,749 | ||||||
| Deferred revenue, net of current portion | 23,023 | 23,023 | ||||||
| Lease liabilities, net of current portion | 9,508 | 9,502 | ||||||
| Deferred tax liabilities | 2,438 | 2,539 | ||||||
| Other long-term liabilities | 50 | 50 | ||||||
| Total liabilities | 261,732 | 252,508 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity | ||||||||
| Common stock | - | - | ||||||
| Additional paid-in capital | 1,991,670 | 2,022,701 | ||||||
| Accumulated deficit | (1,916,135 | ) | (1,915,556 | ) | ||||
| Accumulated other comprehensive (loss) income | (1,699 | ) | 203 | |||||
| Total shareholders' equity | 73,836 | 107,348 | ||||||
| Total liabilities and shareholders' equity | $ | 335,568 | $ | 359,856 |
Precigen, Inc. and Subsidiaries
Consolidated Statements of Operations
| (Amounts in thousands, except share | Three months ended March 31, | |||||||
| and per share data) | 2022 | 2021 | ||||||
| Revenues | ||||||||
| Collaboration and licensing revenues | $ | - | $ | 66 | ||||
| Product revenues | 8,724 | 6,381 | ||||||
| Service revenues | 23,209 | 17,931 | ||||||
| Other revenues | 88 | 133 | ||||||
| Total revenues | 32,021 | 24,511 | ||||||
| Operating Expenses | ||||||||
| Cost of products | 7,510 | 5,574 | ||||||
| Cost of services | 9,589 | 7,402 | ||||||
| Research and development | 12,760 | 10,521 | ||||||
| Selling, general and administrative | 19,576 | 18,702 | ||||||
| Impairment of goodwill | 482 | - | ||||||
| Total operating expenses | 49,917 | 42,199 | ||||||
| Operating loss | (17,896 | ) | (17,688 | ) | ||||
| Other Expense, Net | ||||||||
| Interest expense | (2,069 | ) | (4,539 | ) | ||||
| Interest income | 434 | 392 | ||||||
| Other income (expense), net | 223 | (58 | ) | |||||
| Total other expense, net | (1,412 | ) | (4,205 | ) | ||||
| Equity in net loss of affiliates | (1 | ) | (3 | ) | ||||
| Loss from continuing operations before income taxes | (19,309 | ) | (21,896 | ) | ||||
| Income tax benefit | 58 | 52 | ||||||
| Loss from continuing operations | $ | (19,251 | ) | $ | (21,844 | ) | ||
| Income (loss) from discontinued operations, net of income taxes | - | 4,526 | ||||||
| Net loss | $ | (19,251 | ) | $ | (17,318 | ) | ||
| Net Loss per Share | ||||||||
| Net loss from continuing operations per share, basic and diluted | $ | (0.10 | ) | $ | (0.11 | ) | ||
| Net income (loss) from discontinued operations per share, basic and diluted | - | 0.02 | ||||||
| Net loss per share, basic and diluted | $ | (0.10 | ) | $ | (0.09 | ) | ||
| Weighted average shares outstanding, basic and diluted | 199,629,218 | 193,499,546 |