Precigen Announces Up to $125 Million Non-Dilutive Financing
Rhea-AI Summary
Precigen (Nasdaq: PGEN) has secured a significant non-dilutive credit facility of up to $125 million through Pharmakon Advisors, LP. The financing includes $100 million funded at closing and an additional $25 million available through March 31, 2027. The credit facility matures in five years and carries an interest rate of 6.50% plus three-month SOFR with a 3.75% floor.
The funding will support the US commercialization of PAPZIMEOS, Precigen's novel immunotherapy for recurrent respiratory papillomatosis (RRP) in adults. The company plans to use the proceeds for international market expansion and pursuing pediatric and other HPV-related indications. This strategic financing positions Precigen for its transition into a commercial-stage biopharmaceutical company.
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News Market Reaction 20 Alerts
On the day this news was published, PGEN declined 0.21%, reflecting a mild negative market reaction. Argus tracked a peak move of +5.5% during that session. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $1.56B at that time.
Data tracked by StockTitan Argus on the day of publication.
"I am pleased to announce this non-dilutive financing with Pharmakon, a respected leader in strategic life sciences funding," said Helen Sabzevari, PhD, President and CEO of Precigen. "This fortifies our position for robust US commercialization of PAPZIMEOS, our groundbreaking novel immunotherapy, while also supporting efforts to expand to international markets and pursue pediatric and additional HPV-related indications. Precigen has demonstrated the strength of our innovative therapeutic platforms and is now advancing into the next stage as a commercial company. With the potential for revenue from PAPZIMEOS on the horizon, we are well-positioned to deliver meaningful growth and establish Precigen as a leading biopharma innovator."
Harry Thomasian, Jr., Chief Financial Officer of Precigen adds, "Strengthening our balance sheet provides us with the financial flexibility to commercialize PAPZIMEOS while advancing our broader strategic objectives as Precigen enters a period of projected significant growth."
The credit facility provides Precigen with up to
- The first tranche of
$100 million - A second tranche of
$25 million
The credit facility will mature on the fifth anniversary of the closing date of the first tranche. The credit facility bears interest at a variable rate per year equal to
Evercore served as financial advisor and Davis Polk LLP served as legal advisor to Precigen. Akin served as legal advisor to Pharmakon Advisors, LP.
Pharmakon Advisors, LP is a leading investor in non-dilutive debt for the life sciences industry and is the investment manager of the BioPharma Credit funds. Established in 2009, funds managed by Pharmakon Advisors, LP have committed over
Precigen: Advancing Medicine with Precision®
Precigen (Nasdaq: PGEN) is a biopharmaceutical company specializing in the advancement of innovative precision medicines to address difficult-to-treat diseases with high unmet patient need. Precigen is dedicated to advancing scientific breakthroughs from proof-of-concept through commercialization. With a strong commitment to innovation, Precigen is developing a robust pipeline of differentiated therapies across its core therapeutic areas of immuno-oncology, autoimmune disorders, and infectious diseases. For more information about Precigen, visit www.precigen.com or follow us on LinkedIn or YouTube.
Trademarks
Precigen, PAPZIMEOS, AdenoVerse, and Advancing Medicine with Precision are trademarks of Precigen and/or its affiliates. Other names may be trademarks of their respective owners.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking" statements within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what the Company expects. Examples of forward-looking statements include, among others, information relating to the Company's business and business plans, the success of efforts to commercialize PAPZIMEOS™ (zopapogene imadenovec-drba) for the treatment of recurrent respiratory papillomatosis (RRP) in adults, the Company's ability to successfully obtain foreign regulatory approvals for PAPZIMEOS, expectations about the safety and efficacy of PAPZIMEOS and the Company's other product candidates, the timing of clinical trials and their results, the Company's ability to commence clinical studies or complete ongoing clinical studies, and the ability of PAPZIMEOS to treat RRP. The Company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. For further information on potential risks and uncertainties, and other important factors, any of which could cause the Company's actual results to differ from those contained in the forward-looking statements, see the section entitled "Risk Factors" in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
Investor Contact:
Steven M. Harasym
Tel: +1 (202) 365-2563
investors@precigen.com
Media Contact:
Donelle M. Gregory
press@precigen.com
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SOURCE Precigen, Inc.
