- Precigen Inc (NASDAQ:PGEN) has agreed to sell its subsidiary Trans Ova Genetics, an animal reproductive technologies company, to URUS, a holding company with cooperative and private ownership.
- The deal consideration includes $170 million in upfront cash and up to $10 million earn-out based on the performance of Trans Ova in 2022 and 2023.
- The company anticipates closing the non-healthcare subsidiary sale in Q3 2022.
- Precigen expects the transaction to solidify its balance sheet. It intends to pay the senior convertible notes when due in July 2023.
- As of December 31, Trans Ova had 265 full-time and 55 part-time employees. In 2021, Trans Ova generated sales of $89.6 million.
- "We believe this transaction will support Precigen's mission as a premier cell and gene therapy company laser-focused on the rapid development of our top clinical assets to maximize shareholder value and potentially improve the way devastating diseases like cancer are treated," said Helen Sabzevari, President & CEO of Precigen.
- In April, the FDA granted Fast Track designation to Precigen's PRGN-3006 UltraCAR-T in patients with relapsed or refractory (r/r) Acute myeloid leukemia.
- PRGN-3006 was previously granted FDA Orphan Drug Designation.
- Price Action: PGEN shares are up 18.51% at $1.67 during the market session on the last check Tuesday.
