Precigen Turns Profitable as PAPZIMEOS Sales More Than Double
Quarterly revenue reached $55.0 million as PAPZIMEOS commercial sales accelerated.
Precigen Inc. (PGEN), the biopharmaceutical company, swung to a second-quarter profit of $20.1 million as its newly launched gene therapy gained commercial traction.
PAPZIMEOS net revenue rose to $53.1 million from $21.6 million in the first quarter, extending a climb from $3.4 million in the final quarter of 2024. Patient-hub enrollment increased to well over 500 from approximately 400 in the prior quarter and more than 300 around year-end.
Total revenue rose to $54.1 million from $0.9 million a year earlier, primarily because of PAPZIMEOS sales. Precigen earned $0.06 a basic share and $0.05 a diluted share, compared with a year-earlier loss of $26.6 million, or $0.09 a share.
Operating income reached $22.6 million, reversing a $31.8 million operating loss a year earlier. Total operating expenses edged down to $32.3 million from $32.6 million as the revenue increase flowed through results.
The commercial expansion carried higher selling costs. Selling, general and administrative expense increased $6.1 million to $22.2 million on marketing, personnel and stock-compensation costs, while cost of products and services rose to $2.8 million as PAPZIMEOS manufacturing costs began moving through cost of sales. Research and development expense declined $4.2 million to $7.3 million, partly because manufacturing costs shifted to inventory and cost of sales after approval, though R&D spending is expected to increase as 2026 progresses.
Payer coverage expanded to approximately 315 million U.S. lives, representing nearly all insured lives, from about 215 million around the end of 2024. The permanent PAPZIMEOS J-code took effect April 1, establishing an active reimbursement pathway during the quarter.
Cash, cash equivalents and investments declined to $38.7 million from $56.7 million at the end of March. Existing liquidity and PAPZIMEOS receipts are expected to fund operations through cash-flow break-even by the end of 2026. The FDA also granted the therapy seven years of market exclusivity as its commercial ramp continued.