Precigen: Has To Grow Into Its Valuation

Precigen surged 266% on PAPZIMEOS FDA approval but now trades at a premium valuation near $2.24 billion. PAPZIMEOS, the sole revenue driver, reached $53.1 million in Q2 with COGS being just around $2.8 million. PGEN’s pipeline faces stiff competition, with most candidates showing weaker efficacy than approved or late-stage rivals. Current risk/reward is unattractive due to high expectations, single-product dependence, and early-stage pipeline exposure.

The Thesis: Precigen ( PGEN ) is a mid-sized biotechnology company focused on “difficult-to-treat diseases with high unmet patient need.” Last year, Precigen received FDA approval for PAPZIMEOS, its first commercial product and the first FDA-approved treatment.