Precigen Reports $54.2 Million Net Loss in Q1 2025, Revenue Increases 25.9%

Precigen, Inc. reported a net loss of $54.2 million for the first quarter of 2025, a significant increase from the $23.7 million loss recorded in the same period of 2024. The company's total revenues rose to $1.34 million, up 25.9% from $1.07 million a year earlier, driven primarily by increased product and service sales at its Exemplar subsidiary. Product revenues increased by 47.1% to $203,000, while service revenues grew by 21.3% to $1.12 million. Despite this revenue growth, the company’s operating loss improved slightly, decreasing by 7.4% from the previous year, reflecting a reduction in operating expenses.

Total operating expenses for the quarter were $23.9 million, down 6% from $25.5 million in the prior year. This decline was largely attributed to a $3.8 million decrease in research and development expenses, which fell to $10.5 million, as the company streamlined its operations following the closure of its ActoBio subsidiary in late 2024. However, selling, general, and administrative expenses increased by 21.8% to $12.4 million, primarily due to costs associated with preparing for the commercialization of its lead product candidate, PRGN-2012.

In terms of strategic developments, Precigen has focused on its lead program, PRGN-2012, an investigational gene therapy for recurrent respiratory papillomatosis (RRP). The FDA has granted priority review for the Biologics License Application (BLA) for PRGN-2012, with a target action date set for August 27, 2025. The company has also paused enrollment in several UltraCAR-T clinical trials to concentrate resources on PRGN-2012, reflecting a strategic shift to prioritize its most promising assets.

As of March 31, 2025, Precigen's cash and cash equivalents stood at $6.1 million, a decrease from $29.5 million at the end of 2024. The company also reported total assets of $128.8 million, down from $145.3 million at the end of the previous fiscal year. The decline in cash reserves raises concerns about the company's liquidity, as it has incurred substantial losses since inception and has no committed source of additional funding. Management has indicated that the company may need to raise additional capital to continue operations, which could involve dilutive financing or strategic partnerships.

Looking ahead, Precigen's ability to achieve profitability remains uncertain, hinging on the successful development and commercialization of its product candidates. The company has acknowledged substantial doubt about its ability to continue as a going concern, given its current cash position and ongoing losses. Future capital requirements will depend on various factors, including the progress of its clinical programs and the timing of regulatory approvals. The company plans to finance its operations through a combination of equity offerings, debt financing, and potential revenue from product sales, contingent upon successful FDA approval of PRGN-2012.