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On Thursday, Cantor Fitzgerald reiterated its Overweight rating on shares of Precigen Inc. (NASDAQ:PGEN), currently trading at $1.28 with a market capitalization of $376 million, with a focus on the company’s progress with its PRGN-2012 drug. According to InvestingPro data, the stock has shown strong momentum with a 56% price increase over the past six months. Analysts at the firm highlighted the ongoing efforts to secure a label for all Recurrent Respiratory Papillomatosis (RRP) patients, noting that insurance payers have signaled willingness to cover the drug within the proposed pricing range of approximately $300,000 to $500,000. The company’s commercial and manufacturing preparations are reportedly advancing in anticipation of the potential product launch.
Precigen is currently enrolling patients for a confirmatory trial for PRGN-2012, which is a single-arm study targeting around 35 patients. The trial design has been developed in consultation with the U.S. Food and Drug Administration (FDA), and according to Cantor Fitzgerald, the FDA’s guidance on this matter remains unchanged. While specific enrollment numbers were not disclosed, the goal is to complete patient enrollment by the end of 2026.
The firm’s commentary suggests that the main focus at this stage is on refining the value proposition of PRGN-2012 to optimize coverage and reimbursement strategies. The positive outlook from Cantor Fitzgerald comes as Precigen continues to work towards meeting regulatory requirements and preparing for a successful market introduction of the drug. InvestingPro analysis reveals the company maintains a healthy liquidity position with a current ratio of 3.53 and holds more cash than debt on its balance sheet, providing financial flexibility for its development programs. Discover 8 more exclusive InvestingPro Tips and comprehensive financial analysis in our Pro Research Report.
Precigen’s efforts are part of a broader strategy to address the needs of patients suffering from RRP, a condition that currently has limited treatment options. The company’s proactive engagement with payers and alignment with FDA guidelines demonstrate its commitment to bringing PRGN-2012 to the market as a potential therapeutic option for those affected by this rare disease.
The endorsement from Cantor Fitzgerald underscores the analyst’s confidence in Precigen’s approach and the potential of PRGN-2012 to become a valuable addition to the RRP treatment landscape. As Precigen advances through the clinical and regulatory process, the investment firm’s Overweight rating aligns with broader analyst sentiment, with consensus price targets suggesting significant upside potential. Based on InvestingPro Fair Value analysis, the stock is currently trading near its Fair Value, while analysts anticipate sales growth in the current year.
In other recent news, Precigen Inc. reported a net loss of $126.2 million for the fiscal year 2024, compared to a loss of $95.9 million in 2023. Despite the financial loss, the company is focusing on the potential approval and launch of its lead gene therapy product, PRGN-2012, targeting Recurrent Respiratory Papillomatosis (RRP). Analysts from various firms have expressed confidence in PRGN-2012, with Stifel maintaining a Buy rating and a $7.00 price target, citing strong clinical data and a favorable safety profile. H.C. Wainwright also reiterated a Buy rating with a $6.00 target, following the FDA’s acceptance of the Biologics License Application for PRGN-2012, with a review date set for August 27, 2025.
Cantor Fitzgerald increased its price target for Precigen to $5.00, up from $3.00, reflecting confidence in the company’s financial stability and market potential. The firm noted that Precigen concluded 2024 with $97.9 million in cash and investments, which should support operations into 2026. JMP analysts also maintained a Market Outperform rating with a $6.00 target, highlighting Precigen’s commercial readiness for PRGN-2012. Precigen’s strategic preparations include manufacturing readiness and partnerships to ensure a successful product launch.
The company anticipates that PRGN-2012 could become the first FDA-approved therapy for RRP, potentially generating significant revenue upon approval. Precigen’s efforts to engage healthcare providers and payors are part of its comprehensive commercialization strategy. Analysts believe that the absence of approved therapeutic options in the market could lead to a strong initial uptake of PRGN-2012, providing Precigen with a competitive advantage.
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