Precigen signs supply agreement with Catalent for PAPIZEMOS manufacturing

Published 18/08/2025, 22:14
Precigen signs supply agreement with Catalent for PAPIZEMOS manufacturing

Precigen, Inc. (NASDAQ:PGEN), whose stock has surged nearly 170% over the past year according to InvestingPro data, announced Monday that it has entered into a commercial supply agreement with Catalent (NYSE:CTLT) Maryland, Inc. for the manufacturing of PAPIZEMOS. The company’s stock, currently trading at $2.95, has shown remarkable momentum with a 69% gain in just the past week. The agreement, effective as of August 13, 2025, outlines that Catalent will provide services including analytical, development, processing, validation, and product maintenance for PAPIZEMOS, according to a statement made in a recent SEC filing.

Under the terms of the agreement, Precigen has committed to use Catalent exclusively for external, commercial fill and finish manufacturing of all reported volumes of PAPIZEMOS in the specified territory during each calendar year of the contract term. With a current ratio of 2.71, InvestingPro data shows the company maintains strong liquidity to support its manufacturing commitments. If the accompanying plan document specifies a minimum number of product batches, Precigen is required to purchase at least that minimum for each contract year.

Catalent will be paid an agreed-upon price and other fees for its services, with pricing subject to annual adjustments based on factors such as labor, utilities, and overhead. The agreement also includes provisions for maintenance fees and other related expenses.

The initial term of the supply agreement is three years from the effective date. After this period, the contract will automatically renew for successive one-year terms unless either party provides written notice of termination at least twelve months before the end of the current term. The agreement allows for termination by either party in the event of a material breach or certain other circumstances, following any applicable cure period.

Additional customary provisions cover delivery, inspection, warranties, quality, storage, handling, transport, intellectual property, confidentiality, and indemnification.

This information is based on a press release statement included in Precigen’s recent filing with the Securities and Exchange Commission.

In other recent news, Precigen Inc. announced that the U.S. Food and Drug Administration (FDA) has granted full approval for PAPZIMEOS, a treatment for recurrent respiratory papillomatosis (RRP) in adults. This approval is a significant milestone as PAPZIMEOS becomes the first and only FDA-approved therapy for this rare condition, which affects approximately 27,000 adults in the United States. The approval was granted without the need for a confirmatory clinical trial, despite the initial submission under an accelerated approval pathway. Following this development, Citizens JMP raised its price target for Precigen to $8, maintaining a Market Outperform rating. This increase in the price target comes after Precigen’s conference call discussing the approval and launch plans for PAPZIMEOS. Meanwhile, JMP Securities has maintained its Market Outperform rating and $6 price target on Precigen, highlighting the potential transformational impact of the company’s PRGN-2012 therapy for RRP patients. These recent developments underscore the growing attention and optimism surrounding Precigen’s advancements in addressing RRP.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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