Precision BioSciences Reports $7.17 Million Net Income for 2024, Significant Revenue Growth

Precision BioSciences Inc. reported a net income of $7.17 million for the year ended December 31, 2024, a significant improvement from the net loss of $61.32 million in 2023. This turnaround is largely attributed to a $19.97 million increase in revenue, reaching $68.69 million in 2024 compared to $48.73 million in 2023. The revenue increase stemmed from increased revenue related to the Prevail Agreement ($26.7 million), the TG License Agreement and Caribou license ($9.5 million), partially offset by a decrease in revenue from the Novartis Agreement ($16.3 million).

Operating expenses increased by $2.39 million to $94.86 million in 2024. Research and development expenses rose by $6.18 million to $59.56 million, primarily due to increased spending on PBGENE-HBV and PBGENE-3243 programs. Conversely, general and administrative expenses decreased by $3.79 million to $35.30 million. Other income (expense), net, showed a substantial increase of $32.12 million, primarily driven by a $29.61 million gain on the change in fair value of warrant liability and a $3.85 million decrease in loss from equity method investment.

Significant developments during the year included the termination of the Prevail Agreement in April 2024, resulting in the return of three programs to Precision BioSciences. The company also entered into a license agreement with TG Therapeutics for non-oncological applications of azer-cel, receiving an upfront payment and potential milestone payments totaling up to $288.6 million. Furthermore, a non-exclusive license was granted to Caribou Biosciences for one of Precision's cell therapy patent families. The company also completed a reverse stock split of 1-for-30 in February 2024 and a common stock offering in March 2024, raising $40 million in gross proceeds. Finally, the company dosed its first patient in the ELIMINATE-B trial for PBGENE-HBV in December 2024.

As of December 31, 2024, Precision BioSciences had 108 full-time employees, 76 of whom were engaged in research and development. The company's cash and cash equivalents totaled $108.5 million. The company projects that its current cash resources will be sufficient to fund operations into the second half of 2026, enabling the achievement of Phase 1 clinical data for two wholly-owned programs. However, the company acknowledges the need for substantial additional funding in the future and the potential for dilution to existing shareholders through future equity or debt financings. The company also highlights numerous risks associated with its business, including those related to its financial condition, product development, regulatory approvals, commercialization, intellectual property, and reliance on third parties, as detailed in the 10-K filing.