Precigen Reports First Quarter 2020 Financial Results
GERMANTOWN, Md., May 6, 2020 /PRNewswire/ -- Precigen, Inc. (Nasdaq: PGEN), a biopharmaceutical company specializing in the development of innovative gene and cell therapies to improve the lives of patients, today announced first quarter financial results for 2020.
First Quarter Business Highlights:
-- PRGN-2009 AdenoVerse((TM)) Immunotherapy: Precigen announced that the US
Food and Drug Administration (FDA) cleared the Investigational New Drug
(IND) application to initiate a Phase 1/2 trial for PRGN-2009, a
first-in-class, off-the-shelf investigational immunotherapy utilizing
the AdenoVerse((TM)) platform and designed to activate the immune system
to recognize and target HPV-positive solid tumors. The Phase 1 portion
of the study will follow a 3+3 dose escalation design to evaluate the
safety of PRGN?2009 administered as a monotherapy and to determine the
recommended Phase 2 dose (R2PD) followed by an evaluation of the safety
of the combination of PRGN-2009 at the R2PD and bintrafusp alfa (M7824),
an investigational bifunctional fusion protein, in patients with
recurrent or metastatic HPV-associated cancers;
-- PRGN-3005 UltraCAR-T(®): Dosing in the second dose level of the
intraperitoneal (IP) arm of the Phase 1 trial of PRGN-3005 UltraCAR-T
was completed;
-- PRGN-3006 UltraCAR-T(®): Enrollment of patients in the
non-lymphodepletion and lymphodepletion arms of the Phase 1 trial of
PRGN-3006 UltraCAR-T, has been unaffected by the COVID-19 pandemic to
date. The IND has been amended, and the FDA has allowed for concurrent
dosing of patients in both arms; and
-- In order to further Precigen's efforts to focus resources on its
healthcare programs and as a result of market uncertainty driven by the
COVID-19 pandemic and the current state of the energy sector, MBP Titan
LLC, a wholly-owned subsidiary of Precigen focused on methane
bioconversion, has significantly reduced its resource requirements
through a workforce reduction. These actions will significantly decrease
cash burn while maintaining intellectual property.
First Quarter 2020 Financial Highlights:
-- Total revenues of $29.8 million;
-- Net loss from continuing operations attributable to Precigen of $29.9
million, or $(0.19) per basic share, of which $8.7 million was for
non-cash charges; and
-- Cash, cash equivalents, and short-term investments totaled $149.2
million at March 31, 2020.
"This is the first full quarter operating as the new Precigen, and we have made tremendous progress in consolidating operations and adhering to our operating priniciples to deliver value to all stakeholders," said Helen Sabzevari, PhD, President and CEO of Precigen. "From a clinical perspective, we are incredibly pleased to receive the third IND clearance for a Precigen asset in just over one year. From an operational perspective, we've achieved significant progress in streamlining our healthcare operations. This helps us focus our capital allocation to ensure that we have a solid runway for maximum value creation."
First Quarter 2020 Financial Results Compared to Prior Year Period
Total revenues increased $7.3 million over the quarter ended March 31, 2019. Collaboration and licensing revenues increased $4.8 million, or 80%, over the quarter ended March 31, 2019 primarily due to the accelerated recognition of previously deferred revenue upon the mutual termination of a collaboration with Fibrocell Science, Inc., in February 2020. This increase was partially offset by a decrease in collaboration revenues related to programs that were paused in 2019. Service revenues increased $2.6 million, or 23%, over the quarter ended March 31, 2019 primarily due to increased service revenues at Precigen's subsidiary, Trans Ova Genetics L.C., due to an increase in services performed for new and existing customers and the expansion of its commercial dairy business.
Research and development expenses decreased $8.0 million, or 30%. Salaries, benefits and other personnel costs decreased $2.1 million, and contract research organization costs and lab supplies decreased $5.1 million as Precigen narrowed its focus on its primary healthcare programs. Selling, general and administrative expenses decreased $8.0 million, or 26%. Salaries, benefits and other personnel costs decreased $4.8 million primarily due to a reduction of corporate employees in the first quarter of 2020 as Precigen scaled down its corporate functions. Additionally, professional fees decreased $3.6 million primarily due to the expiration of the services agreement with Third Security, LLC on December 31, 2019.
More information on Precigen's first quarter financial results will be available in our Quarterly Report on Form 10-Q, which we expect to file by May 11, 2020.
Conference Call and Webcast
Precigen will host a conference call today Wednesday, May 6(th) at 4:15 PM ET to discuss the results and provide a general business update. The conference call may be accessed by dialing 1-833-646-0488 (US/Canada toll-free) or 1-918-922-6615 to join the Precigen Conference Call. Participants are asked to dial in 10-15 minutes in advance of the scheduled call time to facilitate timely connection to the call. Participants may also access the live webcast through Precigen's website in the Events section at https://investors.precigen.com/events/event-details/precigen-first-quarter-2020-financial-results-conference-call.
Precigen: Advancing Medicine with Precision((TM))
Precigen (Nasdaq: PGEN) is a dedicated discovery and clinical stage biopharmaceutical company advancing the next generation of gene and cell therapies using precision technology to target urgent and intractable diseases in our core therapeutic areas of immuno-oncology, autoimmune disorders, and infectious diseases. Our technologies enable us to find innovative solutions for affordable biotherapeutics in a controlled manner. Precigen operates as an innovation engine progressing a preclinical and clinical pipeline of well-differentiated unique therapies toward clinical proof-of-concept and commercialization. For more information about Precigen, visit www.precigen.com or follow us on Twitter @Precigen and LinkedIn.
Trademarks
Precigen, AdenoVerse, UltraCAR-T, and Advancing Medicine with Precision are trademarks of Precigen and/or its affiliates. Other names may be trademarks of their respective owners.
Cautionary Statement Regarding Forward-Looking Statements
Some of the statements made in this press release are forward-looking statements. These forward-looking statements are based upon Precigen's current expectations and projections about future events and generally relate to plans, objectives, and expectations for the development of Precigen's business, including the timing, pace and progress of preclinical and clinical trials and discovery programs, potential benefits of platforms and product candidates including in comparison to competitive platforms and products, and future plans for Precigen's remaining non-healthcare assets. Although management believes that the plans, objectives and results reflected in or suggested by these forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties, and actual future results may be materially different from the plans, objectives and expectations expressed. These risks and uncertainties include, but are not limited to, (i) the impact of the COVID-19 pandemic on our businesses, operating results, cash flows and/or financial condition, (ii) ongoing transition efforts following Precigen's recent divestment of several assets and businesses; (iii) Precigen's strategy and overall approach to its business model, its recent efforts to realign its business, and its ability to exercise more control and ownership over the development process and commercialization path; (iv) the ability to successfully enter new markets or develop additional products, including the expected timing and results of investigational studies and preclinical and clinical trials, including any delays or potential delays as a result of the COVID-19 pandemic, whether with its collaborators or independently; (v) the ability to successfully enter into optimal strategic relationships with its subsidiaries and operating companies that it may form in the future; (vi) the ability to hold or generate significant operating capital, including through partnering, asset sales and operating cost reductions; (vii) actual or anticipated variations in operating results; (viii) actual or anticipated fluctuations in competitors' or collaborators' operating results or changes in their respective growth rates; (ix) cash position; (x) market conditions in Precigen's industry; (xi) the volatility of Precigen's stock price; (xii) the ability, and the ability of collaborators, to protect Precigen's intellectual property and other proprietary rights and technologies; (xiii) the ability, and the ability of collaborators, to adapt to changes in laws or regulations and policies, including federal, state, and local government responses to the COVID-19 pandemic; (xiv) outcomes of pending and future litigation; (xv) the rate and degree of market acceptance of any products developed by Precigen, its subsidiaries, collaborations or joint ventures; (xvi) the ability to retain and recruit key personnel; (xvii) expectations related to the use of proceeds from public offerings and other financing efforts; (xviii) estimates regarding expenses, future revenue, capital requirements and needs for additional financing; and (xix) the challenges inherent in leadership transitions. For further information on potential risks and uncertainties, and other important factors, any of which could cause Precigen's actual results to differ from those contained in the forward-looking statements, see the section entitled "Risk Factors" in Precigen's most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
For more information, contact:
Investor Contact:
Corporate Contact:
Steven Harasym
Marie Rossi, PhD
Vice President, Investor Relations
Vice President, Communications
Tel: +1 (301) 556-9850
Tel: +1 (301) 556-9850
investors@precigen.com
press@precigen.com
Precigen, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands) March 31, 2020 December 31,
2019
---
Assets
Current assets
Cash and cash equivalents $
37,840 $
65,793
Short-term investments 111,332 9,260
Receivables
Trade, net 19,376 20,650
Related parties, net 252 600
Other 351 4,978
Inventory 14,636 16,097
Prepaid expenses and other 5,596 6,444
Current assets held for sale 110,821
Total current assets 189,383 234,643
Property, plant and equipment, net 59,627 60,969
Intangible assets, net 65,489 68,346
Goodwill 63,703 63,754
Investments in affiliates 1,108 1,461
Right-of-use assets 24,036 25,228
Other assets 1,326 1,362
Total assets $
404,672 $
455,763
---
Current liabilities
Accounts payable $
4,777 $
5,917
Accrued compensation and benefits 7,209 14,091
Other accrued liabilities 9,972 12,049
Deferred revenue 11,141 5,697
Lines of credit 1,205 1,922
Current portion of long-term debt 31,886 31,670
Current portion of lease liabilities 4,308 4,182
Related party payables 139 51
Current liabilities held for sale 47,333
Total current liabilities 70,637 122,912
Long-term debt, net of current portion 188,730 186,321
Deferred revenue, net of current portion 32,877 48,136
Lease liabilities, net of current portion 22,414 23,849
Deferred tax liabilities 2,785 2,834
Total liabilities 317,443 384,052
Commitments and contingencies
Total shareholders' equity
Common stock
Additional paid-in capital 1,797,450 1,752,048
Accumulated deficit (1,708,867) (1,652,869)
Accumulated other comprehensive loss (1,354) (27,468)
Total shareholders' equity 87,229 71,711
Total liabilities and shareholders' equity $
404,672 $
455,763
---
Precigen, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except share and per share data) Three months ended
March
31,
2020 2019
Revenues
Collaboration and licensing revenues $
10,721 $
5,971
Product revenues 4,961 4,837
Service revenues 13,946 11,383
Other revenues 210 394
Total revenues 29,838 22,585
Operating Expenses
Cost of products 6,089 7,722
Cost of services 7,536 7,092
Research and development 18,891 26,938
Selling, general and administrative 23,018 31,049
Total operating expenses 55,534 72,801
Operating loss (25,696) (50,216)
Other Expense, Net
Unrealized and realized appreciation in fair value of equity securities and preferred stock, net 449
Interest expense (4,592) (4,305)
Interest and dividend income 673 1,361
Other income, net 64 546
Total other expense, net (3,855) (1,949)
Equity in net loss of affiliates (351) (748)
Loss from continuing operations before income taxes (29,902) (52,913)
Income tax benefit (expense) (40) 13
Loss from continuing operations $
(29,942) $
(52,900)
Loss from discontinued operations, net of income taxes (26,056) (9,236)
Net loss $
(55,998) $
(62,136)
Net loss attributable to the noncontrolling interests 1,427
Net loss attributable to Precigen $
(55,998) $
(60,709)
Amounts Attributable to Precigen
Net loss from continuing operations attributable to Precigen $
(29,942) $
(51,473)
Net loss from discontinued operations attributable to Precigen (26,056) (9,236)
Net loss attributable to Precigen $
(55,998) $
(60,709)
Net Loss per Share
Net loss from continuing operations attributable to Precigen per share, basic and diluted $
(0.19) $
(0.34)
Net loss from discontinued operations attributable to Precigen per share, basic and diluted (0.16) (0.06)
Net loss attributable to Precigen per share, basic and diluted $
(0.35) $
(0.40)
Weighted average shares outstanding, basic and diluted 160,338,743 152,948,058
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SOURCE Precigen, Inc.
