Precigen, Inc.'s (NASDAQ:PGEN) Profit Outlook

With the business potentially at an important milestone, we thought we'd take a closer look at Precigen, Inc.'s (NASDAQ:PGEN) future prospects. Precigen, Inc.,a discovery and clinical-stage biopharmaceutical company, develops gene and cell therapies using precision technology to target diseases in areas of immuno-oncology, autoimmune disorders, and infectious diseases. The US$365m market-cap company announced a latest loss of US$126m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is Precigen's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 4 of the American Biotechs analysts is that Precigen is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$5.9m in 2026. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 64% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Precigen's upcoming projects, but, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

View our latest analysis for Precigen

Before we wrap up, there’s one aspect worth mentioning. Precigen currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Precigen which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Precigen, take a look at Precigen's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Valuation: What is Precigen worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Precigen is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Precigen’s board and the CEO’s background .
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.