Breaking Down Precigen, Inc. (PGEN) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Understanding a company's financial health is crucial, especially in the dynamic world of biopharmaceuticals. Let's dive into Precigen's (PGEN) recent financial performance, focusing on key figures from the 2024 fiscal year. Did you know that Precigen ended 2024 with $97.9 million in cash and investments, and that they also raised $87.5 million through a preferred stock offering and the sale of intellectual property rights? But with total revenues decreasing by 37% to $3.9 million and a net loss of $126.2 million, how should investors interpret these figures? Read on to explore these insights and more, helping you make informed decisions about Precigen.

Precigen, Inc. (PGEN) Revenue Analysis

Analyzing Precigen, Inc.'s (PGEN) financial health requires a detailed look into its revenue streams, growth, and segment contributions. Understanding these elements provides investors with key insights into the company's financial stability and potential for future growth.

Precigen, Inc. operates with a diverse portfolio which impacts its revenue streams. These streams can be broken down to understand where the company's income is generated:

• Products: Revenue generated from the sale of its various products.
• Services: Income derived from services offered by the company.
• Geographic Regions: Revenue broken down by different regions, showcasing areas of strength and potential growth.

Year-over-year revenue growth rate is a critical indicator of Precigen, Inc.'s performance. Examining historical trends allows investors to assess whether the company is expanding, contracting, or maintaining its market position. The percentage increase or decrease in revenue from one year to the next highlights the company's growth trajectory.

To fully grasp Precigen, Inc.’s revenue composition, it’s essential to consider the contribution of each business segment to the overall revenue. This breakdown reveals which segments are the primary drivers of income and which may need improvement. Here is an example of how revenue contributions might be structured:

Significant changes in revenue streams can signal strategic shifts, market impacts, or internal restructuring. Investors should be aware of any notable changes and understand the underlying reasons for these shifts. These changes could include:

• New product launches
• Changes in market demand
• Acquisitions or divestitures
• Regulatory impacts

For further insights into the stakeholders behind Precigen, Inc., explore Exploring Precigen, Inc. (PGEN) Investor Profile: Who’s Buying and Why?

Precigen, Inc. (PGEN) Profitability Metrics

Analyzing Precigen, Inc.'s (PGEN) profitability requires a detailed look into its financial statements to understand its gross profit, operating profit, and net profit margins. These metrics reveal how efficiently the company generates profit from its revenue and manages its expenses.

Here's what a deep dive into Precigen, Inc.'s profitability involves:

• Gross Profit Margin: This indicates the percentage of revenue remaining after subtracting the cost of goods sold (COGS). A higher gross profit margin suggests that Precigen, Inc. is efficient in converting revenue into profit before considering other operating expenses.
• Operating Profit Margin: This ratio measures the percentage of revenue that remains after deducting both the cost of goods sold and operating expenses. It reflects the company's profitability from its core business operations.
• Net Profit Margin: The net profit margin shows the percentage of revenue that translates into net income after all expenses, including interest and taxes, are accounted for. It provides a comprehensive view of the company's overall profitability.

To fully assess Precigen, Inc.'s financial health, it's essential to examine how these profitability ratios have trended over time. Consistent improvement in these margins can signal enhanced operational efficiency and better cost management. Conversely, declining margins may raise concerns about the company's ability to maintain profitability.

Comparing Precigen, Inc.'s profitability ratios with industry averages provides valuable context. If the company's margins are higher than its peers, it may indicate a competitive advantage. On the other hand, lower margins could suggest areas where the company needs to improve its performance.

Operational efficiency is a critical driver of profitability. Effective cost management and favorable gross margin trends are indicative of a company's ability to control expenses and maximize profits. Investors should closely monitor these aspects to gauge Precigen, Inc.'s financial stability and growth potential. For insights into the company's broader objectives, refer to: Mission Statement, Vision, & Core Values of Precigen, Inc. (PGEN).

Precigen, Inc. (PGEN) Debt vs. Equity Structure

Understanding how Precigen, Inc. (PGEN) finances its growth involves analyzing its debt and equity structure. This includes examining the levels of debt, the balance between debt and equity, and any recent financing activities.

As of the fiscal year 2024, Precigen, Inc. (PGEN) has a mix of both short-term and long-term debt. The company's financial statements provide detailed figures on these amounts, which are crucial for assessing its solvency and financial risk. Reviewing these figures in the context of the company's assets can offer insights into how leveraged Precigen, Inc. (PGEN) is.

The debt-to-equity ratio is a key metric for evaluating Precigen, Inc.'s (PGEN) financial leverage. It compares the total debt to the total equity, indicating the extent to which the company is using borrowed money to finance its operations versus using its own funds. A high ratio suggests a more aggressive financing strategy, which could amplify both profits and losses. It is important to compare Precigen, Inc.'s (PGEN) debt-to-equity ratio with industry standards to gauge whether it is in line with its peers.

Details on the debt-to-equity ratio include:

• Calculation: Total Liabilities / Shareholder Equity
• Interpretation: A ratio above 1.0 indicates that Precigen, Inc. (PGEN) has more debt than equity, while a ratio below 1.0 suggests the opposite.
• Industry Comparison: Comparing Precigen, Inc.'s (PGEN) ratio to the industry average provides context on its financial risk relative to competitors.

Recent financial activities, such as new debt issuances, changes in credit ratings, or refinancing efforts, can significantly impact Precigen, Inc.'s (PGEN) capital structure. Monitoring these events provides insights into how the company is managing its debt obligations and optimizing its financing costs. For example, a debt refinancing might indicate an effort to lower interest rates or extend the maturity of its debt.

Balancing debt and equity is critical for sustainable growth. Too much debt can increase financial risk, while too little debt might limit growth opportunities. Precigen, Inc.'s (PGEN) strategy in this regard reflects its overall financial management philosophy and its outlook on future growth and profitability. Understanding this balance helps investors assess the company's long-term financial stability and growth potential.

For more insights into Precigen, Inc.'s (PGEN) values and long-term goals, review Mission Statement, Vision, & Core Values of Precigen, Inc. (PGEN).

Precigen, Inc. (PGEN) Liquidity and Solvency

Assessing Precigen, Inc.'s (PGEN) liquidity involves examining several key financial metrics and statements. These provide insights into the company's ability to meet its short-term obligations and overall financial health. Here's a breakdown of the essential areas to consider:

Current and Quick Ratios:

The current and quick ratios are fundamental indicators of a company's liquidity position. The current ratio measures a company's ability to pay off its current liabilities with its current assets. The quick ratio, also known as the acid-test ratio, excludes inventories from current assets to provide a more conservative view of liquidity, as inventories may not be easily convertible to cash.

As of the fiscal year 2024, Precigen, Inc.'s liquidity positions can be evaluated through these ratios:

• Current Ratio: A current ratio of greater than 1 suggests that the company has more current assets than current liabilities, indicating a healthy liquidity position.
• Quick Ratio: The quick ratio offers a more stringent measure by excluding inventory. A quick ratio at or above 1 is generally considered satisfactory.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a vital measure of a company's short-term financial health. Monitoring trends in working capital can reveal whether a company's liquidity position is improving or deteriorating.

To analyze working capital trends for Precigen, Inc.:

• Review the changes in current assets (e.g., cash, accounts receivable, inventory) and current liabilities (e.g., accounts payable, short-term debt) over the past few years.
• Identify any significant fluctuations and investigate the underlying reasons. For example, a sharp decrease in working capital might be due to increased short-term debt or a decline in accounts receivable.

Cash Flow Statements Overview:

The cash flow statement provides a detailed look at all the cash inflows and outflows of a company during a specific period, categorized into operating, investing, and financing activities.

Key trends to watch in Precigen, Inc.'s cash flow statements include:

• Operating Cash Flow: This indicates the cash generated from the company's core business activities. Positive operating cash flow is a good sign, suggesting that the company can fund its operations without relying heavily on external financing.
• Investing Cash Flow: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). Significant cash outflows in this area might indicate investments in growth opportunities.
• Financing Cash Flow: This covers cash flows related to debt, equity, and dividends. Companies might raise capital through debt or equity offerings.

Potential Liquidity Concerns or Strengths:

When assessing Precigen, Inc.'s liquidity, it's crucial to identify any potential concerns or strengths. For example:

• Strengths: A high current ratio, positive operating cash flow, and a consistent increase in working capital are positive indicators.
• Concerns: A low quick ratio, negative operating cash flow, or a significant decrease in working capital could raise red flags.

In summary, a thorough analysis of Precigen, Inc.'s current and quick ratios, working capital trends, and cash flow statements is essential for investors to gauge the company's liquidity and overall financial stability. Monitoring these metrics over time provides valuable insights into the company's ability to meet its short-term obligations and sustain its operations.

Precigen, Inc. (PGEN) Valuation Analysis

Determining whether Precigen, Inc. (PGEN) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. This analysis helps investors gauge the company's current market position relative to its intrinsic value. You can find more about Precigen, Inc. (PGEN) investor profile here: Exploring Precigen, Inc. (PGEN) Investor Profile: Who’s Buying and Why?

Several key financial ratios are crucial in assessing Precigen's valuation:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company’s stock price to its earnings per share. As of now, a current P/E ratio for Precigen is not applicable because the company has negative earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio measures the market's valuation of a company relative to its book value. As of December 31, 2023, Precigen's Price to Book ratio is 0.79. A ratio below 1 may suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization. As of now, a current EV/EBITDA ratio for Precigen is not applicable because the company has negative earnings.

Analyzing Precigen's stock price trends provides insight into market sentiment and investor confidence:

Precigen's stock has experienced substantial volatility over the past year. As of April 17, 2025, the stock is trading at $1.16. The 52-week high is $3.24 and the 52-week low is $0.85, illustrating significant price fluctuation. This volatility suggests a high-risk investment, potentially influenced by factors such as clinical trial outcomes, regulatory approvals, and overall market conditions.

Dividend yield and payout ratios are not applicable in Precigen's case, as the company does not currently offer dividends.

Analyst consensus provides a summarized view of professional financial experts' opinions on the stock. Based on the most recent analyst ratings:

• As of February 27, 2024, Chardan Capital initiated coverage with a 'Buy' rating and a price target of $4.
• As of August 15, 2023, Brookline Capital Management maintained a 'Buy' rating with a price target of $7.

These ratings suggest a positive outlook from analysts, although the price targets vary, reflecting different perspectives on the company's potential growth and profitability.

Precigen, Inc. (PGEN) Risk Factors

Several factors could impact Precigen's financial health and future success. These risks can be broadly categorized into internal and external factors, encompassing industry competition, regulatory changes, and market conditions. Here’s a breakdown of key risks facing Precigen, Inc.:

Overview of Internal and External Risks

Precigen faces a combination of internal and external risks that could significantly affect its financial stability. These include:

• Market and Economic Uncertainties: General market and economic conditions can impact the biotech sector, affecting Precigen's ability to raise funds. Macroeconomic factors such as inflation, interest rates, and geopolitical conflicts can disrupt capital markets.
• Competition: The company faces competition in the gene and cell therapy space, with potential competitors developing alternative treatments that could impact market share. Competitors include MeiraGTx Holdings, Benitec Biopharma, Xencor, and XOMA Royalty.

Discussion of Operational, Financial, or Strategic Risks

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Financial Losses and Going Concern: Precigen has a history of net losses and may not achieve profitability. The company has substantial doubt about its ability to continue as a going concern due to significant losses and the need for additional capital. In 2024, Precigen's net loss was $126.2 million, compared to a net loss of $95.9 million in 2023.
• Cash Burn Rate: Analysis indicates that Precigen is quickly burning through cash and is not expected to be profitable this year, adding pressure to achieve regulatory success. As of the end of fiscal year 2024, the company reported approximately $98 million in cash.
• Dependence on Key Programs: The company's strategic focus on PRGN-2012 is intended to extend the cash runway, but there are risks associated with this prioritization, including potential negative impacts on other programs and employee morale.
• Regulatory Risks: Precigen faces regulatory risks in the FDA approval process for PRGN-2012. The biotechnology industry is known for its stringent regulatory environment, and even promising candidates can face unexpected hurdles or delays. Any setbacks in the approval process could significantly impact Precigen's timeline for commercialization and, consequently, its financial outlook. The FDA granted priority review to Precigen's BLA for PRGN-2012, with a PDUFA target action date set for August 27, 2025.
• Commercialization Risks: As Precigen prepares to transition from a development-stage to a commercial-stage company, it faces several significant risks, including limited experience in commercializing products, which could lead to challenges in marketing, sales, and distribution of PRGN-2012.
• Dilution Risks: Shareholders have been diluted in the past year. The limited number of authorized shares of common stock may hinder the company's ability to raise capital or complete strategic transactions.
• Market Risks: Precigen is exposed to market risks, including foreign currency exchange rate fluctuations, which could adversely affect financial results. Additionally, the potential for changes in healthcare regulations and reimbursement policies poses a significant risk to the company's ability to commercialize its products successfully.
• Operational Risks The U.S. federal government's fiscal management and debt ceiling issues pose additional financial and operational risks.

Mitigation Strategies or Plans

To address these risks, Precigen has implemented several mitigation strategies:

• Strategic Prioritization: In August 2024, Precigen announced a strategic focus on the development of PRGN-2012, pausing enrollment in PRGN-3005 and PRGN-3007 trials, and minimizing UltraCAR-T spending while seeking strategic partnerships. The company also completed the shutdown of its ActoBio subsidiary operations to streamline resources and focus on pre-commercialization efforts for PRGN-2012. This included a workforce reduction of over 20%.
• Financial Maneuvers: In late 2024, Precigen took significant steps to address near-term financing concerns. The company announced a convertible preferred stock financing that raised $79 million at an initial conversion price of $1.125. Investors also received warrants to purchase 52.6 million shares of Precigen's common stock at an exercise price of $0.75 per share. Additionally, Precigen sold intellectual property and royalty rights for FCX-007 to Innovator21 LLC for $8.5 million.
• Exploring Financing Options: Management acknowledges the need for substantial capital to advance preclinical and clinical development and commercialization efforts and is exploring various financing options, including non-dilutive and dilutive financings. In August 2024, Precigen announced a proposed $30 million public offering of common stock.
• Commercial and Manufacturing Readiness: The company continues to rapidly advance its commercial and manufacturing readiness campaign in anticipation of a potential 2025 launch of PRGN-2012.

These strategies aim to extend Precigen's cash runway into 2026, providing stability for the company's operations and upcoming product launches. However, the success of these mitigation efforts is not guaranteed and depends on various factors, including regulatory approvals and market conditions.

For more insights into Precigen, Inc.'s financial health, you can refer to: Breaking Down Precigen, Inc. (PGEN) Financial Health: Key Insights for Investors

Precigen, Inc. (PGEN) Growth Opportunities

Precigen, Inc. (PGEN) faces a complex landscape of growth opportunities, balancing innovative product development with financial realities. Investors need to consider both the potential upsides and the challenges inherent in the company's strategic direction. For further insights, refer to: Breaking Down Precigen, Inc. (PGEN) Financial Health: Key Insights for Investors

Analysis of key growth drivers for Precigen, Inc. (PGEN) includes product innovations, strategic market expansions, and potential acquisitions. These elements are crucial in determining the company's future trajectory and ability to generate revenue.

Future revenue growth projections and earnings estimates for Precigen, Inc. (PGEN) remain uncertain. Factors influencing these projections include the success of ongoing clinical trials, regulatory approvals, and market adoption rates of its products. Keeping a close watch on these elements is essential for investors.

Strategic initiatives and partnerships play a vital role in driving Precigen, Inc.'s future growth. These collaborations can provide access to new technologies, markets, and funding opportunities, enhancing the company's competitive position.

Precigen, Inc. (PGEN) possesses several competitive advantages that could position it for growth, including its innovative technology platforms and intellectual property. However, it also faces challenges such as competition from larger companies and the need for substantial capital investments.

Key factors influencing Precigen, Inc.'s (PGEN) growth prospects:

• Product Innovation: Continued investment in and successful development of new products.
• Market Expansion: Strategic entry into new markets and geographies.
• Strategic Partnerships: Forming alliances to leverage complementary strengths and resources.
• Regulatory Approvals: Securing timely approvals for key products.

Here's a simplified overview of potential growth drivers: