Full Press Release Details
Precigen Reports Second Quarter and First Half
2022 Financial Results
GERMANTOWN, MD, August 8, 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 second quarter and first half 2022 financial results.
"Precigen is laser focused on maximizing
the value of our highest priority assets and prioritizing our capital allocation to enable us to reach critical inflection points in our
clinical trials. We have been able to expedite our prioritized programs, rapidly progressing from Phase 1 dose escalations to 1b expansions
and have already initiated Phase 2 studies for several programs," said Helen Sabzevari, PhD, President and CEO of Precigen. "We
continue to demonstrate the potential of these assets and their associated therapeutic platforms, and are actively pursuing rapid regulatory
strategies for licensure to bring these potential investigational therapies to patients as quickly as possible. We expect additional data
this year and early next for our prioritized programs, and are particularly excited for the Phase 1 data presentation for the PRGN-2012
AdenoVerse study in Q4 2022."
transaction to sell Trans Ova Genetics, which is expected to close in Q3 2022, will provide Precigen with $170 million in cash up-front
and up to a $10 million earn-out over the next two years. The proceeds from this sale will fortify our balance sheet and provide non-dilutive
funds to pay our convertible notes, which we intend to do when due," said Harry Thomasian Jr., CFO of Precigen. "We
believe that our cash on hand and cost reduction initiatives, taking into account our plan for our convertible notes, give us enough runway
to advance our clinical priorities into Q4 2023."
Key Business Highlights
Second Quarter and First Half 2022 Financial
Second Quarter 2022 Financial Results Compared
to Prior Year Period
First Half 2022 Financial Results Compared
to Prior Year Period
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, UltraPorator, AdenoVerse
and Advancing Medicine with Precision are trademarks of Precigen and/or its affiliates. Other names may be trademarks of their
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
consummation of the prospective sale of Trans Ova Genetics, the use of capital from that transaction, 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 sale of
Trans Ova will not be consummated on the expected timeline or at all (whether due to a failure to receive, or delay in the receipt of,
clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 or other third party consents required for the transaction or
the failure to satisfy other conditions to the consummation of the transaction), 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 M. 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) | June 30, 2022 | December 31, 2021 | |||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 43,844 | $ | 36,423 | |||
| Short-term investments | 71,453 | 72,240 | |||||
| Receivables | |||||||
| Trade, net | 1,307 | 1,341 | |||||
| Related parties, net | 18 | 73 | |||||
| Other | 546 | 566 | |||||
| Inventory | 224 | 326 | |||||
| Prepaid expenses and other | 2,654 | 5,471 | |||||
| Current assets held for sale | 44,573 | 40,188 | |||||
| Total current assets | 164,619 | 156,628 | |||||
| Long-term investments | 11,877 | 48,562 | |||||
| Property, plant and equipment, net | 7,726 | 8,599 | |||||
| Intangible assets, net | 45,933 | 52,291 | |||||
| Goodwill | 36,864 | 37,554 | |||||
| Right-of-use assets | 8,944 | 9,990 | |||||
| Other assets | 921 | 936 | |||||
| Noncurrent assets held for sale | 44,340 | 45,296 | |||||
| Total assets | $ | 321,224 | $ | 359,856 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 2,668 | $ | 3,112 | |||
| Accrued compensation and benefits | 4,864 | 7,856 | |||||
| Other accrued liabilities | 9,666 | 7,817 | |||||
| Deferred revenue | 164 | 1,490 | |||||
| Current portion of long-term debt | - | 52 | |||||
| Current portion of lease liabilities | 1,033 | 1,393 | |||||
| Related party payables | 58 | 74 | |||||
| Current liabilities held for sale | 11,448 | 12,851 | |||||
| Total current liabilities | 29,901 | 34,645 | |||||
| Long-term debt, net of current portion | 198,674 | 179,882 | |||||
| Deferred revenue, net of current portion | 23,023 | 23,023 | |||||
| Lease liabilities, net of current portion | 8,098 | 8,747 | |||||
| Deferred tax liabilities | 2,260 | 2,539 | |||||
| Long-term liabilities held for sale | 3,615 | 3,672 | |||||
| Total liabilities | 265,571 | 252,508 | |||||
| Commitments and contingencies (Note 16) | |||||||
| Shareholders' equity | |||||||
| Common stock | - | - | |||||
| Additional paid-in capital | 1,993,979 | 2,022,701 | |||||
| Accumulated deficit | (1,933,770) | (1,915,556) | |||||
| Accumulated other comprehensive (loss) income | (4,556) | 203 | |||||
| Total shareholders' equity | 55,653 | 107,348 | |||||
| Total liabilities and shareholders' equity | $ | 321,224 | $ | 359,856 |
Precigen, Inc. and Subsidiaries
Consolidated Statements of Operations
| (Amounts in thousands, except share and per share data) | Three months ended | Six months ended | |||||||||||
| June 30, | June 30, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Revenues | |||||||||||||
| Collaboration and licensing revenues | $ | - | $ | 301 | $ | - | $ | 367 | |||||
| Product revenues | 621 | 694 | 1,113 | 1,306 | |||||||||
| Service revenues | 2,213 | 2,679 | 7,146 | 5,303 | |||||||||
| Other revenues | 77 | 141 | 165 | 274 | |||||||||
| Total revenues | 2,911 | 3,815 | 8,424 | 7,250 | |||||||||
| Operating Expenses | |||||||||||||
| Cost of products | 645 | 436 | 1,122 | 824 | |||||||||
| Cost of services | 1,166 | 914 | 2,383 | 1,888 | |||||||||
| Research and development | 11,954 | 13,184 | 23,755 | 23,321 | |||||||||
| Selling, general and administrative | 12,670 | 14,954 | 26,359 | 29,220 | |||||||||
| Impairment of goodwill | - | - | 482 | - | |||||||||
| Impairment of other noncurrent assets | 638 | 543 | 638 | 543 | |||||||||
| Total operating expenses | 27,073 | 30,031 | 54,739 | 55,796 | |||||||||
| Operating loss | (24,162) | (26,216) | (46,315) | (48,546) | |||||||||
| Other Expense, Net | |||||||||||||
| Interest expense | (2,063) | (4,633) | (4,101) | (9,137) | |||||||||
| Interest income | 37 | 49 | 75 | 81 | |||||||||
| Other income (expense), net | 40 | (199) | 238 | (297) | |||||||||
| Total other expense, net | (1,986) | (4,783) | (3,788) | (9,353) | |||||||||
| Equity in net loss of affiliates | - | - | (1) | (3) | |||||||||
| Loss from continuing operations before income taxes | (26,148) | (30,999) | (50,104) | (57,902) | |||||||||
| Income tax benefit | 89 | 60 | 147 | 112 | |||||||||
| Loss from continuing operations | $ | (26,059) | $ | (30,939) | $ | (49,957) | $ | (57,790) | |||||
| Income from discontinued operations, net of income taxes | 8,424 | 10,889 | 13,071 | 20,422 | |||||||||
| Net loss | $ | (17,635) | $ | (20,050) | $ | (36,886) | $ | (37,368) | |||||
| Net Loss per Share | |||||||||||||
| Net loss from continuing operations per share, basic and diluted | $ | (0.13) | $ | (0.16) | $ | (0.25) | $ | (0.29) | |||||
| Net income from discontinued operations per share, basic and diluted | 0.04 | 0.06 | 0.07 | 0.10 | |||||||||
| Net loss per share, basic and diluted | $ | (0.09) | $ | (0.10) | $ | (0.18) | $ | (0.19) | |||||
| Weighted average shares outstanding, basic and diluted | 200,461,441 | 199,021,587 | 200,047,629 | 196,275,820 |