Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
GERMANTOWN, MD – Precigen (NASDAQ:PGEN), Inc., a pharmaceutical company based in Virginia, has announced the termination of a material definitive agreement with Alaunos Therapeutics, Inc., effectively regaining all previously licensed rights. The termination, which took place on Thursday, October 4, 2024, nullifies an Amended and Restated License Agreement (A&R License Agreement) that was established on April 3, 2023.
The A&R License Agreement, which superseded an original agreement from October 5, 2018, granted Alaunos certain licenses to utilize Precigen’s technology. With the termination of this agreement, Alaunos no longer holds any rights to use the technology that was previously licensed from Precigen.
Precigen, formerly known as Intrexon Corp, operates under the 03 Life Sciences organization in the pharmaceutical preparations industry. The company's common stock is traded on the Nasdaq Global Select Market under the ticker symbol NASDAQ:PGEN.
In other recent news, Precigen Inc. has been making significant strides in its PRGN-2012 gene therapy program for recurrent respiratory papillomatosis (RRP). Clinical trial results show more than half of patients demonstrating a complete response and a significant reduction in surgeries. The company plans to submit a Biologics License Application (BLA) by the end of 2024, with potential commercialization targeted for 2025.
In a strategic move, Precigen implemented workforce reduction and cost-saving measures, raising $31.4 million through an equity issuance to extend its cash runway into early 2025. Furthermore, Precigen has granted performance stock units (PSUs) to key executives, contingent upon meeting specific operational milestones related to PRGN-2012.
H.C. Wainwright, an independent analyst firm, has adjusted its price target for Precigen's shares to $4.00, maintaining a Buy rating. The firm's projections include an expectation of PRGN-2012 generating risk-adjusted revenue in 2026, estimated at $106 million, and growing to $521 million by 2030. These recent developments highlight the company's focus on advancing its gene therapy program and maintaining financial stability.
InvestingPro Insights
Precigen's recent termination of its agreement with Alaunos Therapeutics comes at a time when the company is facing significant financial challenges. According to InvestingPro data, Precigen's revenue has seen a substantial decline, with a -80.14% growth rate in the last twelve months as of Q2 2024. This steep drop in revenue aligns with the company's decision to regain previously licensed rights, possibly as part of a strategy to restructure its business model and revenue streams.
The company's financial health appears precarious, with InvestingPro Tips indicating that Precigen is "quickly burning through cash" and "not profitable over the last twelve months." These factors may have influenced the decision to terminate the agreement, potentially aiming to consolidate resources and refocus on core technologies.
Despite these challenges, two InvestingPro Tips offer a glimmer of hope: "2 analysts have revised their earnings upwards for the upcoming period," and the "RSI suggests the stock is in oversold territory." These indicators might signal a potential turnaround opportunity for investors willing to take on risk.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips that could provide further insights into Precigen's financial situation and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.