Precigen, Inc., a Virginia-based biopharmaceutical company focused on gene and cell therapies, reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company recorded total revenues of $953,000 for the third quarter, a decrease of 30.9% compared to $1,379,000 in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $2.735 million, down 45.3% from $4.997 million in the prior year. This decline was primarily attributed to reduced revenues from its Exemplar segment, which develops genetically engineered miniature swine models.

The company experienced a net loss of $23.978 million for the third quarter of 2024, compared to a net loss of $19.795 million in the same quarter of 2023, marking a 21.1% increase in losses. For the nine-month period, the net loss escalated to $106.508 million, a 69.5% increase from $62.848 million in the previous year. The increase in losses was driven by higher operating expenses, which rose to $109.248 million for the nine months ended September 30, 2024, up 54.9% from $70.531 million in 2023.

Precigen's cash and cash equivalents improved significantly, reaching $24.725 million as of September 30, 2024, compared to $7.578 million at the end of 2023. This increase was bolstered by net proceeds of $30.882 million from a public offering of common stock in August 2024. However, the company reported an accumulated deficit of $2.071 billion as of September 30, 2024.

Strategically, Precigen has undergone significant restructuring, including the shutdown of its ActoBio subsidiary in Q2 2024, which resulted in non-cash impairment charges totaling $34.5 million. The company also implemented a workforce reduction of over 20% in August 2024 to prioritize the commercialization of its PRGN-2012 gene therapy, which is expected to have a rolling Biologics License Application (BLA) submission in Q4 2024 and a potential product launch in 2025.

Research and development expenses for the nine months ended September 30, 2024, increased by 16% to $41.240 million, primarily due to costs associated with PRGN-2012. Selling, general, and administrative expenses also rose slightly, reflecting severance costs and increased readiness expenses for PRGN-2012.

The company continues to face substantial doubt regarding its ability to continue as a going concern, as its current cash and investments are insufficient to fund planned operations for the next year. Precigen is exploring various financing options to address its liquidity needs.