Stifel thinks Precigen stock set to rebound after capital secured, BLA submitted

Stifel notes Precigen (PGEN) has completed the BLA submission of PRGN-2012, which comes on the heels of 2 financial announcements that together provide the company with significant runway to navigate the regulatory review and execute a commercial launch. The firm continues to see PRGN-2012 as clinically de-risked following Phase 2 data at ASCO24 and sees the likelihood-of-approval as high. Stifel doesn’t think the data is controversial, but believes the stock is trading at depressed levels on both balance sheet worries and a hesitation to underwrite commercial efforts for a new, yet-to-be validated market. The firm believes the Innovator 21 deal netting $8.5M in non-dilutive capital, along with the $79M PIPE sufficiently addresses the balance sheet overhang. Stifel has a Buy rating on the shares with a price target of $7.