Precigen Inc (NASDAQ: PGEN) has announced a definitive agreement to sell its wholly-owned animal reproductive technology subsidiary Trans Ova Genetics L.C. to URUS for $170 million in cash plus a $10 million earn-out based on the subsidiary’s performance in 2022 through 2023.
Transaction expected to be consummated in Q3 2023
The companies expect to consummate the transaction in the third quarter of 2023, subject to customary closing conditions that include approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Precigen is a leading gene and cell therapy firm focused on the quick development of its top clinical products to optimize shareholder value and possibly advance the way fatal diseases like cancers are treated. The transaction will help Precigen’s objective.
CEO and President of Precigen said, Helen Sabzevari said, “I am proud of Precigen management and the Trans Ova team for successfully leading the financial turnaround of Trans Ova operations to maximize the value of this asset over the last two years. We expect to have the capacity to pay the convertible notes upon maturity and to focus on fast regulatory paths for our healthcare portfolio.”
Precigen announces Q1 2022 results
The company recently announced its Q1 2022 financial results and offered business updates. The company’s pipeline has been prioritized depending on the promising early results observed for important products, and they are investigating potential quick routes to FDA approval for products with strong data in conditions with significant unmet clinical needs. A major step forward for individuals with refractory/relapsed acute myeloid leukemia is the FDA Fast Track designation for PRGN-3006 UltraCAR-T, which was recently granted.
Revenue was up 31% in Q1 2022 to $7.5 million from a year ago. Trans Ova and Exemplar product and service revenues increased to $7.6 million because of the high demand for animals and services due to stronger dairy and beef industries in the current period. The revenue was partially offset by a reduction of $0.1 million in license and collaboration revenue for the quarter ending March 31, 2021. At the end of the quarter, cash and equivalents were $142.1 million.