On Wednesday, Precigen (NASDAQ:PGEN) discussed first-quarter financial results during its earnings call. The full transcript is provided below.

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Summary

Precigen Inc reported strong financial performance with Q1 2026 net product revenue of $21.6 million from Papcemios, up from $3.4 million in Q4 2025.

The company highlighted the successful commercial launch of Papcemios, supported by FDA approval, broad payer coverage, and strong adoption in both major medical centers and community practices.

Management expressed optimism about continued growth, with plans to initiate a pediatric trial for Papcemios in Q4 2026 and updates on their PRGN 2009 immunotherapy program expected later in the year.

The company reported an operating loss of $6 million for the quarter, with a net loss of $7.9 million, and ended the quarter with $56.7 million in cash and equivalents.

Precigen Inc anticipates achieving cash flow breakeven by the end of 2026 without needing to access additional capital markets.

Full Transcript

OPERATOR

Good afternoon ladies and gentlemen and welcome to the President's first quarter 2026 financial results and Business Updates Conference Call at this time all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, May 13, 2026 and I would now like to turn the conference over to Mr. Steven Karasim. Please go ahead sir.

Steven Karasim (Moderator)

Thank you Operator and thank you for all those joining us today for our Q1 2026 update call. Joining me today are Dr. Helen Sabzavari, our President and CEO, Phil Tennant, our Chief Commercial Officer, Harry Temassian, our CFO and Ratul Shah, our coo. Before we begin our prepared remarks, I remind everyone that we will be making certain forward looking statements during this call. These statements are based on our current expectations and beliefs. We encourage you to review the slide in this presentation as well as our SEC filings which include risks and uncertainties that could cause actual results to differ materially from today's forward looking statements. With that, I will now turn the call over to Dr. Sabzavari.

Dr. Helen Sabzavari

Thank you Steve and thank you to all those joining us for our Q1 update call. The approval of Tafsimias in August of 2025 has brought a novel first line standard of care treatment for adults with rrp. In nine short months we have witnessed tremendous progress with the first commercial therapeutic launch in the disease's history. Since last reporting in March, the launch has continued to show accelerating momentum. The early success and trajectory continues to build on this landmark achievement for the patients, families, healthcare providers, the RRP foundation and all of those impacted by this devastating disease. I will begin by providing you with some general color around what we are seeing and then turn the call over to Phil who will provide more specifics around commercialization. The accelerating trajectory we are seeing in revenue growth is robust as reported in our quarterly report Papcemias. Net Product revenue for Q1 2026, the first full quarter of availability was 21.6 million as compared to 3.4 million in Q4 2025. Prescribers continue to add Papcemias to their practices at both major medical centers and community practices alike, which has been a strong tailwind as we are seeing this increasing Momentum continue into Q2. This is a clear signal of the high level of enthusiasm among patients and physicians resulting in significant uptake of the therapy. Why we believe we are seeing such a significant launch trajectory. First, the full approval and broad label from the FDA. There are no restrictions on the number of surgeries a patient must undergo from prior to treatment with papzimia. We are seeing this as patients are being dosed across all severities and in the extensive payer coverage we have secured. Second, the transformative clinical data based on significant efficacy, durable and ongoing responses with the median duration of follow up of three years. Importantly, we look forward to updating the ongoing durability data at ASCO (American Society of Clinical Oncology) next month. Third, the ease of administration of the drug has enabled broad and rapid uptake at not just the major medical institution but increasingly at community practices. Specifically, the ease of dosing as well as the efficient distribution infrastructure we have in place across the country allow rapid and effective integration into routine clinical practices.

Dr. Helen Sabzavari

Finally, the power of this therapy is strongly supported by a landmark expert position paper released earlier this year. The paper is sponsored by the RRP foundation and authored by 16 leading US physicians specializing in RRP, was published in the Laryngoscope, the premier peer reviewed journal in otolaryngology. The paper recommends Papcemius as the new standard of care and the preferred first line therapy. Collectively, these factors mean that Papcemias has set a new benchmark for this space, prioritizing medical therapy over repeated surgical interventions to improve patient outcome.

Dr. Helen Sabzavari

As a reminder, this therapy directly addresses the root cause of RRP by eliciting a targeted immune response against HPV 6 11. Papcemias also offers the potential for redosing due to its mechanism of action and favorable safety profile. We are evaluating this in an ongoing clinical trial which is enrolling patients as we speak. I will now turn the call over to Phil for details around our commercial launch.

Phil Tennant (Chief Commercial Officer)

Phil thank you Helen and a warm welcome to all those listening. I'm delighted to share the most recent progress of our launch efforts with details around the completion of Q1 and the sharp momentum we continue to see with Papcemias' launch in Q2 of this year. As seen in our filings, we showed strong quarter over quarter product revenue growth in Q1 2026, clearly demonstrating the expected acceleration of product uptake from 3.4 million to 21.6 million.

Phil Tennant (Chief Commercial Officer)

As we report today, we continue to see comprehensive payer coverage and further activation of accounts across the country. I will now present some of the leading indicators we are observing as of today translating to the launch acceleration Registrations in the Papcemios patient hub continue to grow. As of today we have approximately 400 patients registered of which 25% are in the community setting. Underscoring the broad reach of papsimios beyond academic and major centers and reinforcing that papsimios can be effectively integrated into routine clinical practice beyond major centers.

Phil Tennant (Chief Commercial Officer)

As previously mentioned, this does not account for non hub patients directly enrolled by institutions. This continues to support the fact that there is expected pent up demand for the new standard of care for adults with rrp. Payer coverage has been exceptional and provides a solid platform for patient access to papcemios. Total lives covered through commercial Medicare and Medicaid stands at an estimated 297 million, all inclusive. This equates to more than 90% of insured lives covered in the U.S.

Phil Tennant (Chief Commercial Officer)

as expected, we continue to see activation of accounts who are prescribing and ordering papcemiose across both major medical centers and community practices. We are seeing this Trend Continue into Q2, further fueled by the Permanent J Code and the dedicated field reimbursement resources we have implemented. As Helen mentioned earlier, the expert position paper continues to solidify papzimios as the first choice for adult patients and treating physicians. We continue to have a significant presence at major scientific congresses in the US and beyond, both through publications and presentations and interactions with thought leaders and the broader treatment community. This again reinforces the strong receptivity to papzymios that we are seeing from the market. These congresses will continue to be a significant part of our commercial and scientific strategy moving forward. The assignment of the Permanent J code on April 1, coupled with the durability of response that we are seeing in patients, is helping this impetus continue.

Phil Tennant (Chief Commercial Officer)

The Permanent J Code designation will further simplify claims processing and facilitate the broader patient access through both medical centers and community practices. The significant quarter over quarter revenue growth is a clear sign that the healthcare community is embracing Papcemios. We are thrilled with launch performance in Q1 and expect these positive trends to continue into Q2 and beyond. I look forward to sharing those Q2 results in August. I'll now turn the call over to Harry for an overview of our Q1 financials.

Harry Temassian (Chief Financial Officer)

Harry thank you Phil and good afternoon to all of the participants on today's call. As you've already heard, we are extremely pleased with our top line financial results for the first quarter. I also want to add that not only do we surpass $21 million in pap symios revenue, but our operating loss for the quarter was only $6 million. Let me provide some further color on our overall financial results for the quarter. Total revenue was $23.3 million, which included $21.6 million related to Papsimios sales. We saw demand for Papsimios continue to build as the first quarter progressed and we're continuing to see that demand increase as we enter the second quarter. Research and development costs for the quarter were $5.6 million which compared to the prior year first quarter decreased by $4.8 million. The majority of this change is explained by the fact that Papcemias manufacturing costs were expensed prior to the FDA approval. As we look forward, we anticipate R&D expense will increase as the year progresses. Selling general and administrative expenses for the quarter $21 million having increased by $8.7 million from the prior year's first quarter. The increase was significantly driven by increased commercial activities related to Pap Symbios Moving down the Statement of Operations As I noted earlier, our operating loss for the quarter was $6 million. Our net loss for the quarter was $7.9 million or $0.02 per basic and diluted share. Turning to the balance sheet, we ended the quarter with $56.7 million in cash, cash equivalents and investments. I do want to point out that our cash used in operations for the quarter was $43.8 million and included $13 million of cash outflows that we do not expect to recur in future quarters this year. The first quarter cash used also did not include any cash receipts or from Papsimio sales based on customer payment terms. With that said, we expect cash used in operations in the second quarter to be significantly lower than what we saw in Q1. We continue to reiterate that based on our current financial forecast, our cash, cash equivalents and investments, along with the collection of Pap Simios receivables, will fund operations through cash flow breakeven by the end of 2026 and we currently do not see a need to access capital markets for additional funding. I'd like to now turn it back to Helen for some closing remarks.

Dr. Helen Sabzavari

Helen thank you Harry. I will now provide updates on the portfolio starting with Papcemias clinical and regulatory updates. We intend on initiating a pediatric trial in Papzimias in Q4 of this year and as previously mentioned, in addition, our Marketing Authorization application continues under the review path by EMA for Papcemia. We are also pleased to announce our sponsorship of a third annual RRP Awareness Day in June. This event provides another excellent platform to raise global awareness of RRP and the new standard of care for its treatment in the US. Now turning to PRGN 2009 this is the same backbone as our approved therapy Papcemias, expanding the proven ADenoverse platform. Our PRGN 2009 immunotherapy is designed to train the immune system to recognize and eliminate tumor cells infected with HPV 16 and HPV 18, the root cause of major HPV driven cancers such as head and neck and cervical cancers. These malignancies together represents nearly 5% of all cancer cases worldwide. PRGN 2009 is advancing in multiple phase 2 clinical trials in combination with Pembro in both head and neck and cervical cancers. I am very enthusiastic about the prospects of this program. We plan to provide updates on the program later in the year. With that, I will now turn the call over to the operator for Q and A. Operator.

OPERATOR

Thank you ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press STAR followed by the 1. On your telephone keypad you will hear a prompt that your hand has been raised and should you wish to cancel your request, please press STAR followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Thank you. And your first question comes from the line of Jason Butler from Citizens. Please go ahead.

Jason Butler (Equity Analyst at Citizens)

Hi, thanks for taking the questions and congrats on the quarter and the progress with Papcemias. A couple from me. First of all, can you speak to the number of patients that have now received at least the first dose and if you're now also seeing patients complete the full course of therapy? Second question, on the re-dosing trial, can you just maybe hit a couple of the design highlights for the trial and when we may see initial cuts of data? And then last one for me on PRGN 2009, the update that you'll give later this year, can we expect to see any results from the ongoing phase two trials in that update? Thank you.

Dr. Helen Sabzavari

Yeah, and maybe I can also add that very clearly as patients are being dosed and finishing, all of the patients have received their doses. So this is again going back to the original data that we have presented on the safety and efficacy and durability of Papcemias, which again points to that factor and ease of administration. In regard to the second question and redosing, we have currently started the re-dosing of the patient, especially the patients that they had partial responses in our previous treatments, in our previous trials, in clinical trials, and we have started with that. And clearly our patients that are being dosed right now commercially, obviously we are very much excited and from what we are hearing from the field, the physicians are extremely excited about some of the results that are seeing currently. So for now we are focusing on the partial responders that were in our original trials and we are gathering the information on that and we will be reporting from that perspective. In regards to the PRG in 2009. The answer is absolutely we will be reporting data and actually we are looking forward to that. This is, as we have mentioned, our phase 2 trial, both especially on the head and neck, that is in combination with Pembro. And I think what is very important, these are open label trials. So we obviously have had and have continuous opportunity to follow the data and we are looking forward to be sharing this in the second half of this year.

OPERATOR

Thank you. And your next question comes from the line of Brian Chang from JPMorgan. Please go ahead.

Brian Chang (Equity Analyst at JP Morgan)

Hey guys, thanks for taking our questions this afternoon and congrats on a quarter. Let me just first, out of the 400 patients that you currently in the hub, can you talk about the pace of conversion that you're seeing to commercial products? And just curious if you can talk a little bit about just the pace of also recruitment into the hub. Are you seeing any uptick since you launched? Just curious if you can talk about the pace there. And then we have a follow up. Thank you. Sure.

Phil Tennant (Chief Commercial Officer)

Hey, Brian, thanks for the question. So Phil here. So I think the revenue is probably the first thing that speaks to the pace of conversion of the patients. It's a little early to go into definitive details on that. We are looking at that, of course. And I think with the advent of the J code, the permanent J code, that's something that over the next couple of quarters we'll do a deep dive on to understand exactly how quickly and how many of these patients are being converted and how we can help. We've implemented dedicated field resources to assist in that conversion. And you know, the momentum that we're seeing coming into Q2 suggests that we're making great progress there in terms of the pace of recruitment into the hub. I mean, you've seen the numbers steadily increase as we started to report on hub numbers. And remember, this is only the Precigen Inc. hub that we are commenting on. And there's a significant number of patients who are not using our hub who are being identified and treated. So that's another dynamic that is important.

Dr. Helen Sabzavari

Yeah. And perhaps Brian, I can also add this is. Helen, I think what is very important, and Phil pointed that out, is also the number of the patients that are coming through the community centers. The because this is extremely important. And as we reported now we have 25% of the patients are coming from communities. So this really points out not only the large or expanded efforts on medical centers, but now the community docs and the centers are participating. And again, a lot of those are not necessarily in the hubs and they are treating the patients as we speak. And also another important point is this is not basically in regard of doesn't matter the severity of the patient, which is very, very important. Again, so we are very excited about this out the reach and the way that Papcemias has been basically embraced by physicians and patients.

Brian Chang (Equity Analyst at JP Morgan)

Thank you, Helen. Maybe just a follow up here. As we think about, you know, as we think about how to model second quarter and you know, obviously moving into the rest of the year, what are some, you know, are there any specific consideration that we should really think through as we, you know, run through our modeling exercise on two Q3, Q and so on. And just like you did for the first quarter number, are you able to provide some guardrail in terms of what we could see numerically for the second quarter number? Thank you.

Dr. Helen Sabzavari

Okay. Yeah, thank you, Brian, for the question. So clearly we have said we are not at this moment providing the guidance. However, as you saw with from Q4 to Q1 and we have gone to over 21.5 million. And also we have acceleration, as you have seen in really treatment and expansion of the treatment both at medical centers and community centers. I think we are looking forward definitely to our Q2 and the results that we will be sharing as far as revenue is concerned. And as Phil said, I think the revenue will speak for itself as it gets presented, which really shows the bringing in the number of the patients continuously and the treatment as we are expanding. And one of the good indicators, you can see that just from our hub, again, which is limited because it's only R hop and doesn't include patients from the others necessarily, you can see A continuous expansion in the number of the patients or increase in the number of patients which is again it speaks to the fact that this therapy is very much in accelerated fashion is taken up by the field. And one other thing that maybe I can speak to and Phil can add is from a perspective of what we are seeing at the conferences and the fact that how the physicians are speaking and basically putting the patients on these treatments and it will. It's really amazing and it's quite encouraging in regard to what we have.

Phil Tennant (Chief Commercial Officer)

So yeah, I would just add Brian, that you know, there's a few things that we're very confident about and, and looking forward to reporting on more. Obviously the strong payer position we cemented quite early and that gives us a firm foundation for what's to come. I would say as Helen mentioned, we expect the continued activation of accounts who are ordering and using Papcemias and not only in the Integrated Delivery Networks (IDNs), but in the community. And we would expect that community trend to continue to strengthen and ultimately the patient identification in line with our broad label to continue as we go through Q2 and beyond. And ultimately all of that is laying the firm foundation for the long term success of the product over multiple quarters and years and not just over a single quarter.

Brian Chang (Equity Analyst at JP Morgan)

Great, thank you Phil. Thanks for the caller and congratulations again.

Phil Tennant (Chief Commercial Officer)

Thanks Brian.

OPERATOR

Thank you once again. Press star and want to ask a question. And your next question comes in the line of Smayam Pakula Ramakant from hc. Thank you Wainrath. Please go ahead.

Smayam Pakula Ramakant

Thank you. Good afternoon Helen. Phil Rutul and team. Obviously a fantastic quarter with $21.6 million in revenues. Phil, if you can help us understand that number a little bit more in terms of what portion of that was either part of pent up demand or flow from Q4 to Q1 in terms of getting the payer policies processes set up versus patients who were treated in the same vein. You disclosed 400 patients in the hub with 25% coming from the community. So how many of these 400 or so patients that you have in the hub have been infused at this point? And also what's the average time somebody takes from enrollment to getting dosed? The last question for me is on the data itself that's expected at the ASCO (American Society of Clinical Oncology) conference in terms of the durability data, you know, how should we think about that data? Would that be helpful and supportive of any label expansions? And also how should we think about that in terms of the current studies, whether it is pediatric or redosing, you know, will that Give us some sort of a feel for how these studies should, you know, eventually read out. Thanks for taking my questions.

Dr. Helen Sabzavari

Thank you very much, Arte, for the questions. This is Ellen and maybe I take the last question first and then I will give the rest to Phil. In regards to the ASCO presentation, we are actually very excited about the durability response and the data that is going to be presented at asco. Clearly we continue seeing the same kind of a momentum and as far as both safety, durability of response and the efficacy that we have reported. And we are now building further on that at asco. So this is all going to be quite exciting for us. And yes, that data will be helping in further really adding for the durability of the response and expansion of the indication. So we are looking forward to that. And also that data further add to the really the robustness of the platform, which is simply this is something that we are very excited about, the AD Universe platform to be used across a number of the indication and specifically on HPV related indication both in rare diseases but also in oncology. And we think that that data is another feather in the cap of Adenoverse platform which we are moving towards the platform designation with. So with that I'm going to hand it to Phil to answer the other question.

Phil Tennant (Chief Commercial Officer)

Hey rk, thanks for the question. So let me tackle your hub question first. I did refer to this a little earlier. I think we'd like to see another couple of quarters before we communicate details of exactly the hub conversion and time to conversion and so on. I mean, what I would say is that it's pretty much as expected at the moment, but I think we do need another quarter or two to really understand the meaningful time trends there. Your first question was about carryover revenue. Yes, absolutely. Given that we've got a three, three month or 12 week regimen at the end of each quarter, you will see some revenues spill over into the next quarter. I would say from Q4 into Q1 that was pretty minimal given the level of revenue that we had in Q4. But you would expect that to be more as we go forward. And you know, the key thing there is that it's new patients that is fueling the business opportunity that we've seen in Q1.

Dr. Helen Sabzavari

Yeah. And maybe I can add to that that what especially with what achievement with the J code that has been also extremely helpful in not only for instance to be able to process the patients through much more rapidly. And I think we are seeing that trajectory going up and we are seeing the same thing, actually in Q2. So we are very excited about that.

Smayam Pakula Ramakant

Thank you. Thanks for taking all my questions.

Phil Tennant (Chief Commercial Officer)

Thank you. Thanks, Hartley.

OPERATOR

Thank you. And there are no further questions at this time. I will now hand the call back to Dr. Helen Sabsavari for any closing remarks.

Dr. Helen Sabzavari

Thank you, operator. And thank you for all of the thoughtful questions. We appreciate the opportunity to provide you with this update on this historic product launch. I believe we are building the foundation of a meaningful portfolio for precision and for the community of our patients. We look forward to updating you as the launch continues, and specifically also further on our portfolio progress. With that, I wish everyone a wonderful evening. Thank you.

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