#USA #Germantown #Precigen #PAPZIMEOS #Pharmakon Advisors

Precigen Secures Strategic Non-Dilutive Financing

Precigen, Inc. (Nasdaq: PGEN), a cutting-edge biopharmaceutical firm, has made headlines with the announcement of a significant financial agreement. This September, the company disclosed that it has entered into a credit facility agreement with investment funds managed by Pharmakon Advisors, LP. This strategic partnership promises to bolster Precigen’s efforts in pioneering precision medicine, especially their innovative immunotherapy, PAPZIMEOS.

The credit facility provides a total of up to $125 million, divided into two tranches. The first tranche of $100 million has been funded and will be instrumental in enhancing Precigen's balance sheet. This capital will greatly support the U.S. commercialization of PAPZIMEOS, as well as opportunities for international market expansions. A second tranche of $25 million can be drawn at Precigen’s discretion until March 31, 2027, adhering to specific conditions set forth in the agreement.

A Call for Innovation in Biopharmaceuticals

Helen Sabzevari, PhD, the President and CEO of Precigen, expressed enthusiasm regarding this funding. She cites the financing from Pharmakon Advisors—a prominent player in life sciences funding—as a pivotal move to position Precigen strongly in the market. "This fortifies our position for robust U.S. commercialization of PAPZIMEOS and supports efforts to expand to international markets," she stated. With this backing, Precigen not only aims to thrive in the domestic arena but also to explore untapped avenues in pediatric and HPV-related indications, thus expanding the horizons of its innovative therapies.

As Precigen leans into the commercial phase, the groundwork they've laid through notable research in immunotherapy is set to potentially yield significant returns. As Harry Thomasian, Jr., the Chief Financial Officer, pointed out, the enhanced balance sheet allows Precigen the financial flexibility necessary to pursue its ambitious strategic objectives.

Navigating Future Growth

The credit facility matures five years post the initial tranche’s closing date, and its interest rate is pegged at a variable rate, which includes a premium over the secured overnight financing rate (SOFR). Importantly, Precigen holds the option for prepayment, granting them further control over their financial management. This structure is not only favorable for immediate funding needs but also empowers Precigen to navigate future growth strategically.

Pharmakon Advisors has a long-standing reputation for investing in non-dilutive debt within the life sciences sector, reinforcing the credibility of this financial arrangement. Established in 2009, the firm has facilitated over $10 billion in commitments across numerous investments, showcasing their capability and reliability as a financial partner.

Breaking New Ground in Precision Medicine

Precigen’s ambitions extend beyond mere financial growth; they are at the forefront of advancing innovative therapies that address unmet needs in healthcare. The company's focus on difficult-to-treat diseases highlights their commitment to making a tangible difference in patients' lives. Their ongoing development of PAPZIMEOS, specifically designed for treating recurrent respiratory papillomatosis (RRP), signifies a monumental step in therapeutic interventions that can change the lives of many.

With strategic financial backing, a commitment to innovative research, and a vision aligning with pressing patient needs, Precigen is poised for significant advancements within the biopharmaceutical landscape. The coming years will undoubtedly shed light on the impact of PAPZIMEOS and how Precigen will shape the future of precision medicine.

For more information on Precigen's groundbreaking initiatives and their impact on precision medicine, visit www.precigen.com or follow them on LinkedIn and YouTube.