Precigen Turns Cash-Flow Positive a Quarter Early

The Tip Desk · November 5, 2026 · 3 min read

PAPZIMEOS net product revenue reached $72.9 million in the third quarter as the company posted $35.8 million of net income.

Precigen, Inc. (PGEN), a commercial-stage biopharmaceutical company, reported PAPZIMEOS net product revenue of $72.9 million in the third quarter of 2026, a 37% increase from the second quarter, and said it reached positive cash flow a full quarter ahead of its prior year-end guidance.

The sequential gain continued after PAPZIMEOS more than doubled to $53.1 million in the second quarter from $21.6 million in the first quarter. Launch-to-date net product revenue stood at $151 million.

Total revenues were $74.1 million for the three months ended September 30, 2026, up $71.2 million from $2.9 million a year earlier, when no PAPZIMEOS sales were recorded. Collaboration and licensing revenue fell $1.8 million.

Net income was $35.8 million, or $0.08 a share, compared with a net loss attributable to common shareholders of $325.3 million, or $1.06 a share, in the year-ago quarter. Operating income was $38.7 million versus an operating loss of $34.5 million.

The company said net cash provided by operating activities was $11.9 million. Chief Financial Officer Harry Thomasian Jr. said the company had previously guided to positive cash flow by the end of the year and that the results reflected strong PAPZIMEOS uptake and a disciplined approach to spending.

Cost of product and services rose $5.5 million, or more than 500%, to $6.5 million from $1.0 million a year earlier as PAPZIMEOS manufacturing costs shifted from research and development to cost of goods after commercial launch. R&D expenses fell $5.7 million, or 46.4%, to $6.6 million. Selling, general and administrative expenses decreased $1.6 million, or 6.8%, to $22.4 million, with lower performance-based compensation offset by higher workforce, marketing and freight costs tied to the launch.

Total other expense, net decreased $109.2 million, or 97.6%, to $2.7 million from $111.9 million a year earlier, mainly because a $111.5 million warrant-liability fair-value charge recorded in the prior-year quarter did not recur. Interest expense rose $2.1 million to $3.0 million on long-term debt entered in the third quarter of 2025.

Cash, cash equivalents, and investments totaled $51.0 million as of September 30, 2026. Trade receivables, net, were $96.5 million versus $3.9 million at December 31, 2025, and inventory was $22.9 million versus $9.6 million.

President and CEO Helen Sabzevari said well over 500 patients had initiated PAPZIMEOS treatment and 300 had completed it, and that the therapy had become the first-line standard of care for adults with recurrent respiratory papillomatosis. Chief Commercial Officer Phil Tennant said physicians were increasingly making PAPZIMEOS their treatment of choice.

A permanent J-code, J3404, became effective April 1, 2026. The company said payer coverage spans over 315 million US lives.

In September 2026 the FDA granted Platform Technology Designation to Precigen’s AdenoVerse platform. The company said the designation creates opportunities to expedite development of current and future AdenoVerse-based candidates.

The European Medicines Agency has validated and is reviewing the Marketing Authorization Application submitted in November 2025. PAPZIMEOS has European Commission orphan drug designation. Enrollment in an open-label redosing study is ongoing. PRGN-2009 Phase 2 trials in HPV-associated oropharyngeal cancer and cervical cancer remain underway, with new Phase 2 oropharyngeal data planned for a forthcoming R&D Day.