Precigen secures $100 million in non-dilutive financing

GERMANTOWN, Md. - Precigen, Inc. (NASDAQ:PGEN), a biotechnology company with a market capitalization of $1.4 billion that has seen its stock surge 325% year-to-date, has secured $100 million in non-dilutive financing through a credit facility agreement with investment funds managed by Pharmakon Advisors, LP, according to a company press release. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 2.71.

The agreement provides Precigen with up to $125 million across two tranches, with the first $100 million funded at closing. The company can access an additional $25 million through March 31, 2027, subject to certain conditions. The credit facility will mature five years after the closing date and bears interest at a variable rate of 6.50% plus three-month SOFR with a 3.75% floor. InvestingPro analysis indicates the company operates with a moderate level of debt, and analysts have set price targets ranging from $8.00 to $8.50 for the stock.

Precigen plans to use the funds to support the U.S. commercialization of PAPZIMEOS, its immunotherapy treatment for recurrent respiratory papillomatosis in adults, as well as potential expansion into international markets and pursuit of pediatric and other HPV-related indications. While InvestingPro data shows the company isn’t currently profitable, analysts anticipate significant sales growth in the current year. For detailed analysis and 12+ additional ProTips about Precigen’s financial outlook, investors can access the comprehensive Pro Research Report.

"This fortifies our position for robust US commercialization of PAPZIMEOS, our groundbreaking novel immunotherapy," said Helen Sabzevari, President and CEO of Precigen, in the press release statement.

Harry Thomasian, Jr., Chief Financial Officer of Precigen, noted that strengthening the balance sheet provides financial flexibility as the company enters "a period of projected significant growth."

Pharmakon Advisors, LP, which served as the lender, is an investment manager of the BioPharma Credit funds and has committed over $10 billion across 59 investments since its establishment in 2009.

Evercore served as financial advisor to Precigen for the transaction, with Davis Polk LLP acting as legal advisor. Akin provided legal counsel to Pharmakon Advisors.

In other recent news, Precigen Inc. announced the FDA’s full approval of PAPZIMEOS, marking it as the first and only approved treatment for adults with recurrent respiratory papillomatosis (RRP). This approval came two weeks earlier than expected and was highlighted during a recent company conference call. Following this development, H.C. Wainwright reiterated its Buy rating with a price target of $8.50, while Citizens JMP raised its price target from $6.00 to $8.00, maintaining a Market Outperform rating. Additionally, Precigen has entered into a commercial supply agreement with Catalent Maryland, Inc. for the manufacturing of PAPZIMEOS. Under this agreement, Catalent will provide a range of services, and Precigen has committed to using Catalent exclusively for external manufacturing. Cantor Fitzgerald also reiterated its Overweight rating on Precigen, maintaining a positive outlook despite recent stock volatility. These developments reflect significant progress for Precigen as it advances its treatment options and manufacturing capabilities.

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