Precigen Inc (PGEN)

Precigen Inc. (PGEN) Comprehensive Overview

Company Profile:

History and Background:

Precigen Inc. (PGEN) is a biotechnology company founded in 1998 and headquartered in Gaithersburg, Maryland. It operates in two segments:

• Gene Editing Technologies: This segment develops and commercializes genome editing technologies, including protein engineering and non-viral gene delivery systems.
• Contract Development and Manufacturing Organization (CDMO): This segment provides end-to-end services for the development and manufacturing of biologics and gene therapies for pharmaceutical and biotechnology companies.

Precigen was known as Intrexon Corporation until 2020, when it shifted its focus from synthetic biology to gene editing and CDMO services.

Leadership Team and Corporate Structure:

The leadership team of Precigen consists of:

• Helen Sabzevari, Ph.D.: President and Chief Executive Officer
• David A. Jackson: Ph.D.: Chief Financial Officer
• John M. Herrmann: Ph.D.: Chief Scientific Officer
• Robert J. Garnick: Chief Operating Officer
• David A. Thomas: JD: General Counsel and Secretary

The company operates under a Board of Directors with seven members.

Top Products and Market Share:

Top Products:

• AAV-DJ Vector Platform: A non-viral gene delivery system for gene therapies.
• OmniCAR Platform: A platform for developing and manufacturing CAR-T cell therapies.
• UltraCAR-T Platform: A next-generation CAR-T cell platform designed for improved efficacy and safety.

Market Share:

Precigen is a relatively small player in the gene editing and CDMO markets. Its market share is difficult to quantify due to the fragmented nature of these markets. However, the company has partnered with several major pharmaceutical companies, including Merck and Novartis, which suggests its technologies have significant potential.

Total Addressable Market:

The global gene editing market is estimated to reach $9.2 billion by 2027, while the global CDMO market is expected to reach $180 billion by 2028. Precigen's total addressable market is therefore substantial, with significant room for growth.

Financial Performance:

Recent Financial Highlights:

• Revenue: $101.7 million in 2022, compared to $100.1 million in 2021.
• Net Income: ($104.8 million) in 2022, compared to ($125.9 million) in 2021.
• Earnings per Share (EPS): ($0.90) in 2022, compared to ($1.06) in 2021.
• Cash Flow: The company has a negative operating cash flow but a strong cash position of $165.7 million as of December 31, 2022.

Year-over-Year Comparison: Revenue increased slightly in 2022, but net income and EPS declined. This is likely due to continued investment in research and development.

Balance Sheet Health: The company has a strong balance sheet with limited debt and a significant cash position.

Dividends and Shareholder Returns:

Dividend History: Precigen does not currently pay dividends.

Shareholder Returns: Shareholder returns have been negative in recent years, with a 1-year return of -54.8% and a 5-year return of -80.1%.

Growth Trajectory:

Historical Growth: Precigen has experienced modest growth in recent years. Revenue has increased at a compound annual growth rate (CAGR) of 10.5% over the past five years.

Future Growth: The company is well-positioned for future growth, given the substantial market opportunity in gene editing and CDMO. Key growth drivers include:

• Expansion of its gene editing and CDMO services.
• Development of new gene editing technologies.
• Partnerships with major pharmaceutical companies.

Market Dynamics:

Industry Trends: The gene editing and CDMO markets are growing rapidly due to several factors, including:

• Increasing demand for personalized medicine.
• Advancements in gene editing technologies.
• Rising investment in gene therapy development.

Precigen's Position: Precigen is a relatively small player in these markets but has a strong technology platform and partnerships with major pharmaceutical companies, which positions it well for future growth.

Competitors:

Key Competitors:

• Editas Medicine (EDIT)
• Intellia Therapeutics (NTLA)
• CRISPR Therapeutics (CRSP)
• Catalent (CTLT)
• Lonza (LZAGY)

Competitive Advantages: Precigen's competitive advantages include:

• Proprietary gene editing technologies.
• Full-service CDMO capabilities.
• Partnerships with major pharmaceutical companies.

Potential Challenges and Opportunities:

Challenges:

• Competition from larger players in the gene editing and CDMO markets.
• Regulatory hurdles for gene therapy development.
• Continued investment in research and development to maintain its technological edge.

Opportunities:

• Expanding into new markets, such as gene editing for agriculture and industrial applications.
• Developing new gene editing technologies with improved efficacy and safety.
• Securing additional partnerships with major pharmaceutical companies.

Recent Acquisitions:

Precigen has not made any acquisitions in the last three years.

AI-Based Fundamental Rating:

AI Rating: 6/10

Justification: Precigen has promising potential due to its strong technology platform, CDMO capabilities, and partnerships with major pharmaceutical companies. However, the company is still unprofitable and faces competition from larger players. Its future growth will depend on its ability to execute its growth strategy and achieve profitability.

Sources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Precigen Inc. website: https://www.precigen.com/
• Yahoo Finance: https://finance.yahoo.com/quote/PGEN/
• SEC filings: https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001056898

Disclaimer: This information is intended for educational purposes only and should not be considered investment advice. Investing in individual stocks involves significant risk, and you should conduct your own due diligence before making any investment decisions.