Precision BioSciences Reports Mixed Financial Results, Shifts Focus to Complex Gene Editing Programs

Precision BioSciences, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, generating $576,000 for the three months ended September 30, 2024, compared to $13.1 million for the same period in 2023. For the nine months, revenue increased to $68.1 million from $41.7 million year-over-year, primarily driven by contributions from the Prevail Agreement and the TG License Agreement.

Operating expenses for the third quarter decreased to $21.9 million from $25.5 million in the prior year, while total operating expenses for the nine months remained relatively stable at $69.4 million, down slightly from $70.5 million. The operating loss for the third quarter widened to $21.3 million, compared to $12.4 million in the same quarter of 2023. However, the company reported a significant improvement in net income for the nine months, achieving $24.9 million compared to a net loss of $45.0 million in the previous year.

The company’s cash and cash equivalents decreased to $98.8 million as of September 30, 2024, from $116.7 million at the end of 2023. Total current assets also fell to $110.5 million from $136.4 million. Notably, total liabilities decreased significantly to $88.4 million from $140.9 million, reflecting a reduction in current liabilities from $50.0 million to $12.0 million.

Strategically, Precision BioSciences has made several key moves, including the execution of a 1-for-30 reverse stock split in February 2024 to enhance its stock price and regain compliance with Nasdaq listing requirements. The company also entered into a public offering agreement in March 2024, raising approximately $37 million in net proceeds to support ongoing research and development efforts.

In terms of operational focus, the company has shifted its strategy to prioritize complex gene editing programs, ceasing development on certain projects. The sale of its CAR T infrastructure to Imugene Limited in August 2023 has been classified as discontinued operations, impacting the financial results. The company continues to pursue collaborations, including a significant agreement with Novartis for gene editing applications.

Overall, while Precision BioSciences has faced challenges in revenue generation and operational losses, it has also made strategic adjustments to its business model and capital structure to position itself for future growth in the gene editing market.