Full Press Release Details
Precigen Reports Fourth Quarter and Full Year
2021 Financial Results
- 2021 clinical milestone objectives successfully
clinical data presented across three platforms - UltraCAR-T , AdenoVerseTM, ActoBioticsTM -
and five clinical programs -
offering to strengthen balance sheet successfully closed while streamlining operations and reducing operating expenses -
now on rapid paths to licensure for programs addressing high unmet patient needs -
GERMANTOWN, MD, March 1, 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 fourth quarter and full year 2021 financial results.
"In 2021, Precigen was able to demonstrate
significant progress in our core therapeutic platforms with indicators of strong early efficacy and favorable safety profiles across each
of our most clinically advanced assets," said Helen Sabzevari, PhD, President and CEO of Precigen. "As we advance assets with
the most promising paths to licensure, we will continue to focus on strengthening our financial position by continuing to ensure operational
efficiency while seeking strategic non-dilutive funding opportunities where appropriate."
Key Business Highlights
Fourth Quarter and Full Year 2021 Financial
Fourth Quarter 2021 Financial Results Compared
to Prior Year Period
ended December 31, 2021, R&D expenses increased $2.3 million, or 22%, from the quarter ended December 31, 2020. This was primarily
the result of an increase in salaries, benefits, and other personnel costs of $1.4 million and an increase in contract research organization
costs and lab supplies of $0.8 million due primarily to the advancement of the Company's clinical and preclinical programs. Selling,
general and administrative (SG&A) expenses decreased $13.3 million, or 44%, due primarily to a noncash $11.4 million loss on
a settlement agreement in the prior year as well as decreased salary, benefit and other personnel costs, including noncash share-based
compensation expenses attributable to equity grants made in the first quarter of 2020. Net loss from continuing operations was $25.0
million, or $(0.13) per share for the quarter ended December 31, 2021, of which $5.0 million was for noncash charges, compared
to net loss from continuing operations in the prior year's fourth quarter of $39.7 million, or $(0.22) per share,
of which $19.7 million was for noncash charges in 2020.
increased $4.9 million, or 25%, over the quarter ended December 31, 2020. This was primarily the result of product and service revenues
generated by Trans Ova and Exemplar, which increased $5.8 million. This increase was due to higher customer demand for Trans Ova's products
and services as a result of stronger beef and dairy industries in the current year and a change in pricing structure with certain customers,
as well as increased services provided by Exemplar to new and existing customers. Collaboration and licensing revenues decreased $0.8
million primarily due to a decrease in the recognition of previously deferred revenue in the current period resulting from fewer
services being performed pursuant to the Company's historical collaboration agreements.
Full Year 2021 Financial Results Compared to
ended December 31, 2021, R&D expenses increased $8.5 million, or 20%, over the prior year. This was the result of an increase in contract
research organization costs and lab supplies of $6.7 million due primarily to the advancement of the Company's clinical and preclinical
programs. SG&A expenses decreased $17.6 million, or 19%, from the prior year due primarily to certain costs incurred in 2020 that
were not recurring in 2021 and a reduction in salary, benefit and other personnel costs. Costs incurred in 2020 that did not recur in
2021 included $13.9 million for certain legal settlements. Salaries, benefits, and other personnel costs decreased $4.9 million in 2021
primarily due (i) to reduced headcount as the Company scaled down its corporate functions to support a more streamlined organization and
(ii) reduced stock compensation costs for previously granted awards that became fully vested in early 2021. Net loss from continuing operations
for the year ended December 31, 2021 was $96.8 million, or $(0.49) per share, of which $29.4 million was for noncash charges compared
to net loss from continuing operations of $103.8 million in the prior year, or $(0.62) per share, of which $45.9 million was for noncash
were comparable year-over-year, with increased revenues generated by Trans Ova and Exemplar being offset by a decrease in collaboration
and licensing revenue as a result of the Company's changing business. The increase in Trans Ova and Exemplar revenues was $21.6
million. This increase was primarily due to higher customer demand for Trans Ova's products and services as a result of stronger
beef and dairy industries in the current year, as well as increased services provided by Exemplar to new and existing customers combined
with a change in pricing structure with certain customers for both Trans Ova and Exemplar. Collaboration and licensing revenues decreased
$20.7 million as the Company accelerated
of previously deferred revenue in the prior period upon the mutual termination of two of its collaboration agreements in 2020. Gross margin
on products and services improved as a result of the increased revenues, the change in pricing structure for certain customers, and operational
efficiencies that have been gained through reductions in workforce and improved inventory management.
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
commercialization. For more information about Precigen, visit www.precigen.com
Precigen, UltraCAR-T, ActoBiotics, 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) | December 31, 2021 | December 31, 2020 | |||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 42,920 | $ | 51,792 | |||
| Short-term investments | 72,240 | 48,325 | |||||
| Receivables | |||||||
| Trade, net | 20,832 | 16,487 | |||||
| Related parties, net | 73 | 19 | |||||
| Notes | - | 3,689 | |||||
| Other | 566 | 232 | |||||
| Inventory | 13,261 | 11,359 | |||||
| Prepaid expenses and other | 6,736 | 7,192 | |||||
| Current assets held for sale or abandonment | - | 9,853 | |||||
| Total current assets | 156,628 | 148,948 | |||||
| Long-term investments | 48,562 | - | |||||
| Property, plant and equipment, net | 34,315 | 34,924 | |||||
| Intangible assets, net | 54,115 | 65,396 | |||||
| Goodwill | 54,148 | 54,363 | |||||
| Right-of-use assets | 10,900 | 9,353 | |||||
| Other assets | 1,188 | 1,603 | |||||
| Total assets | $ | 359,856 | $ | 314,587 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 5,405 | $ | 4,598 | |||
| Accrued compensation and benefits | 11,223 | 8,097 | |||||
| Other accrued liabilities | 11,595 | 9,549 | |||||
| Deferred revenue | 4,442 | 2,800 | |||||
| Current portion of long-term debt | 402 | 360 | |||||
| Current portion of lease liabilities | 1,551 | 2,657 | |||||
| Related party payables | 27 | 19 | |||||
| Current liabilities held for sale or abandonment | - | 14,047 | |||||
| Total current liabilities | 34,645 | 42,127 | |||||
| Long-term debt, net of current portion | 182,749 | 171,522 | |||||
| Deferred revenue, net of current portion | 23,023 | 23,023 | |||||
| Lease liabilities, net of current portion | 9,502 | 7,744 | |||||
| Deferred tax liabilities | 2,539 | 2,897 | |||||
| Other long-term liabilities | 50 | 100 | |||||
| Total liabilities | 252,508 | 247,413 | |||||
| Commitments and contingencies | |||||||
| Shareholders' equity | |||||||
| Common stock | - | - | |||||
| Additional paid-in capital | 2,022,701 | 1,886,567 | |||||
| Accumulated deficit | (1,915,556) | (1,823,390) | |||||
| Accumulated other comprehensive income | 203 | 3,997 | |||||
| Total shareholders' equity | 107,348 | 67,174 | |||||
| Total liabilities and shareholders' equity | $ | 359,856 | $ | 314,587 |
Precigen, Inc. and Subsidiaries
Consolidated Statements of Operations
| (Amounts in thousands, except share and per | Three months ended December 31, | Year ended December 31, | |||||||||||
| share data) | 2021 | 2020 | 2021 | 2020 | |||||||||
| Revenues | |||||||||||||
| Collaboration and licensing revenues | $ | 117 | $ | 949 | $ | 506 | $ | 21,208 | |||||
| Product revenues | 5,282 | 3,952 | 27,295 | 24,349 | |||||||||
| Service revenues | 18,719 | 14,284 | 75,570 | 56,899 | |||||||||
| Other revenues | 103 | 148 | 502 | 722 | |||||||||
| Total revenues | 24,221 | 19,333 | 103,873 | 103,178 | |||||||||
| Operating Expenses | |||||||||||||
| Cost of products | 5,663 | 7,024 | 24,864 | 28,550 | |||||||||
| Cost of services | 9,263 | 6,766 | 33,521 | 26,963 | |||||||||
| Research and development | 13,019 | 10,671 | 50,141 | 41,644 | |||||||||
| Selling, general and administrative | 16,763 | 30,039 | 74,122 | 91,704 | |||||||||
| Impairment of other noncurrent assets | - | - | 543 | 920 | |||||||||
| Total operating expenses | 44,708 | 54,500 | 183,191 | 189,781 | |||||||||
| Operating loss | (20,487) | (35,167) | (79,318) | (86,603) | |||||||||
| Other Expense, Net | |||||||||||||
| Interest expense | (4,886) | (4,570) | (18,891) | (18,400) | |||||||||
| Interest and dividend income | 312 | 426 | 1,617 | 2,451 | |||||||||
| Other income (expense), net | 40 | (310) | (330) | (165) | |||||||||
| Total other expense, net | (4,534) | (4,454) | (17,604) | (16,114) | |||||||||
| Equity in net loss of affiliates | - | (13) | (3) | (1,138) | |||||||||
| Loss from continuing operations before income taxes | (25,021) | (39,634) | (96,925) | (103,855) | |||||||||
| Income tax benefit (expense) | (13) | (48) | 160 | 82 | |||||||||
| Loss from continuing operations | $ | (25,034) | $ | (39,682) | $ | (96,765) | $ | (103,773) | |||||
| Income (loss) from discontinued operations, net of income tax benefit | - | (1,979) | 4,599 | (66,748) | |||||||||
| Net loss | $ | (25,034) | $ | (41,661) | $ | (92,166) | $ | (170,521) | |||||
| Net Loss per Share | |||||||||||||
| Net loss from continuing operations attributable to Precigen per share, basic and diluted | $ | (0.13) | $ | (0.22) | $ | (0.49) | $ | (0.62) | |||||
| Net income (loss) from discontinued operations attributable to Precigen per share, basic and diluted | - | (0.01) | 0.02 | (0.40) | |||||||||
| Net loss attributable to Precigen per share, basic and diluted | $ | (0.13) | $ | (0.23) | $ | (0.47) | $ | (1.02) | |||||
| Weighted average shares outstanding, basic and diluted | 199,259,802 | 178,225,571 | 197,759,900 | 167,065,539 |