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Precigen
(NASDAQ:PGEN)
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Rating:58Neutral
Price Target:
$6.50
▼(-10.71% Downside)
Action:Reiterated
Date:10/06/26
Overall score reflects a push-pull setup: strong earnings-call momentum (rapid PAPZIMEOS revenue acceleration and reported quarterly profitability) and supportive technical trends are offset by weak underlying TTM financial performance marked by heavy cash burn and elevated leverage. Valuation provides limited support due to a negative P/E and no dividend yield.
Positive Factors
Rapid PAPZIMEOS commercial growth
PAPZIMEOS is showing strong early commercial traction, with quarterly revenue more than doubling sequentially and launch-to-date sales exceeding $78 million. Continued adoption would strengthen Precigen’s revenue base and provide a foundation for funding operations and pipeline development.
Negative Factors
Persistent cash consumption
Deeply negative operating and free cash flow indicate that the business has not yet converted reported activity into self-funded operations. Continued cash consumption may require external financing or successful receivable collections, limiting flexibility for pipeline investment and increasing execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid PAPZIMEOS commercial growth
PAPZIMEOS is showing strong early commercial traction, with quarterly revenue more than doubling sequentially and launch-to-date sales exceeding $78 million. Continued adoption would strengthen Precigen’s revenue base and provide a foundation for funding operations and pipeline development.
Read all positive factors
Precigen (PGEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.45B
Dividend YieldN/A
Average Volume (3M)5.05M
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth1875.05%
EPS Growth-154.83%
CountryUS
Employees160
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.13
Shares Outstanding358,035,250
10 Day Avg. Volume3,988,023
30 Day Avg. Volume5,054,393
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)60.91
Price to Sales (P/S)131.52
P/FCF Ratio-14.18
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue28.21
Enterprise Value/Gross Profit31.50
Enterprise Value/Ebitda-16.81
Forecast
1Y Price Target
$15.00Price Target Upside106.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.17
Revenue Forecast (FY)$238.71M
Precigen Business Overview & Revenue Model
Company Description
Precigen, Inc. is an American company dedicated to the discovery and development of cutting-edge gene and cellular therapies. The company also offers disease-modifying treatments, genetically engineered swine for regenerative medicine, and advance...
How the Company Makes Money
Precigen primarily generates revenue through collaboration and licensing arrangements rather than broad commercial product sales. Under these arrangements, the company may earn (i) upfront payments for granting rights to its technology or programs...
Precigen Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum for PAPZIMEOS driven by exceptional Q2 revenue growth (>145% QoQ), launch-to-date revenue >$78M, broad payer coverage (~315M lives), durable clinical responses (83% ongoing CR >3 years), and attainment of profitability for the quarter and first half of 2026. Operational and financial risks noted include normalization of gross margins after remaining prelaunch inventory is consumed, reliance on accounts receivable collections and existing debt interest expense, rising commercial and future R&D spend, and limited public granularity on exact account activation counts and non-hub patient visibility. Overall, the positive revenue, profitability, coverage, and durability developments materially outweigh the manageable operational and financial caveats.Positive Updates
Quarterly Revenue Acceleration
PAPZIMEOS generated $53.1 million in Q2 revenue vs. $21.6 million in Q1, representing >145% quarter-over-quarter growth; total company revenues were $55.0 million for the quarter.
Negative Updates
Gross Margin Normalization Risk
Q2 95% gross margin is elevated due to recognition related to pre-approval manufacturing and prelaunch inventory; management expects margins to stabilize to high-80%/low-90% (implying COGS ~10%) once remaining prelaunch inventory is sold (expected in Q3).
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue Acceleration
PAPZIMEOS generated $53.1 million in Q2 revenue vs. $21.6 million in Q1, representing >145% quarter-over-quarter growth; total company revenues were $55.0 million for the quarter.
Read all positive updates
Company Guidance
Precigen guided that Q2 PAPZIMEOS revenue was $53.1M (Q1 $21.6M, >145% QoQ) and launch‑to‑date revenue exceeded $78M, with total Q2 revenues of $55M (COGS $2.8M; reported gross margin 95%); they expect gross margins to normalize to the high‑80% to low‑90% range after selling remaining pre‑approval inventory (anticipated in Q3). Financials/guidance included operating income of $22.6M, net income of $20.1M ($0.05/diluted), R&D $7.3M, SG&A $22.2M, cash and investments of $38.7M, trade receivables of $71.9M (expected to be collected over ~4 months), ~$100M debt with ~$3M quarterly interest (offset by ~ $0.4M interest income), and management’s view that cash + receivables will fund operations to cash‑flow breakeven by end‑2026. Commercial guidance/metrics: hub registrations >500, >200 patients have received ≥1 dose with >100 completing the 4‑dose course, ~315M covered lives after adding ~18M in Q2, permanent J‑code effective April 1, and 7‑year U.S. market exclusivity through August 2032.Precigen Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
33
Negative
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 85.72M | 9.68M | 3.92M | 6.22M | 26.91M | 14.27M |
| Gross Profit | 76.77M | 3.59M | -342.00K | 106.00K | 20.57M | -39.41M |
| EBITDA | -143.84M | -243.57M | -123.50M | -89.23M | -62.43M | -77.64M |
| Net Income | -157.71M | -250.64M | -126.23M | -95.90M | 28.32M | -92.17M |
Balance Sheet | ||||||
| Total Assets | 170.30M | 156.62M | 145.27M | 151.04M | 215.98M | 359.86M |
| Cash, Cash Equivalents and Short-Term Investments | 38.21M | 97.86M | 97.91M | 62.85M | 55.95M | 108.66M |
| Total Debt | 98.34M | 98.29M | 5.50M | 7.10M | 51.42M | 190.07M |
| Total Liabilities | 126.72M | 135.71M | 106.75M | 32.55M | 89.72M | 252.51M |
| Stockholders Equity | 43.58M | 20.91M | 38.51M | 118.50M | 126.26M | 107.35M |
Cash Flow | ||||||
| Free Cash Flow | -115.83M | -89.83M | -76.76M | -68.47M | -69.97M | -63.02M |
| Operating Cash Flow | -114.17M | -87.83M | -68.17M | -66.93M | -65.05M | -55.77M |
| Investing Cash Flow | 24.14M | -1.53M | -20.71M | -3.09M | 226.42M | -74.54M |
| Financing Cash Flow | 92.57M | 90.05M | 110.58M | 29.59M | -155.29M | 121.19M |
Precigen Technical Analysis
Neutral
7.28
Price Trends
7.28
Negative
6.29
Positive
5.20
Positive
Market Momentum
-0.17
Positive
39.25
Neutral
25.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PGEN, the sentiment is Neutral. The current price of 7.28 is below the 20-day moving average (MA) of 7.55, above the 50-day MA of 7.28, and above the 200-day MA of 5.20, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PGEN.
Precigen Risk Analysis
Precigen disclosed 67 risk factors in its most recent earnings report. Precigen reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Precigen Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $2.45B | -5.83 | -498.32% | ― | 1875.05% | -154.83% | |
58 Neutral | $1.66B | -3.47 | -57.79% | ― | 12.58% | 28.42% | |
54 Neutral | $818.49M | 0.05 | -210.64% | ― | ― | ― | |
53 Neutral | $1.58B | -5.62 | -111.96% | ― | 30.24% | -3.25% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | $686.24M | -3.36 | -72.28% | ― | ― | 31.81% | |
41 Neutral | $706.49M | -3.09 | -134.49% | ― | ― | 28.46% |
* Healthcare Sector Average
PGEN
Precigen
6.39
2.14
50.35%
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23.11
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NTLA
Intellia Therapeutics
11.16
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SLDB
Solid Biosciences
6.19
0.67
12.14%
OBX
Obsidian Therapeutics
13.94
9.14
190.42%
SANA
Sana Biotechnology
2.37
-3.22
-57.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.