Investing
Precigen (PGEN) Stock Falls 13% Despite Q3 Profit
Precigen stock fell 13.3% on November 5, 2026 after Q3 results showed PAPZIMEOS revenue up 37% from Q2 to $72.9 million and net income of $35.8 million.
Precigen stock (NASDAQ: PGEN) was down 13.3% in early regular trading on November 5, 2026, the morning after the company reported third quarter 2026 results. The drop came even though sales of its respiratory disease therapy PAPZIMEOS rose 37% from the previous quarter to $72.9 million.
What Precigen reported
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Total revenue | $74.1 million | $2.9 million | +$71.2 million |
| PAPZIMEOS net revenue | $72.9 million | None (not yet approved) | New |
| Net income (loss) to common shareholders | $35.8 million | -$325.3 million | Swung to profit |
| Diluted EPS (profit per share, counting all potential shares) | $0.08 | -$1.06 | Swung to profit |
PAPZIMEOS has brought in $151 million in net product revenue since its August 2025 launch, and well over 500 patients have started treatment. Precigen had guided to positive cash flow by year end and reached it a quarter early, with $11.9 million of cash generated by operations. Cash, cash equivalents and investments stood at $51.0 million on September 30, 2026.
The year-ago loss was swollen by one-off items: a $111.5 million charge from a rise in the value of warrants (rights to buy shares at a set price) and a $179.0 million non-cash deemed dividend on preferred stock. Interest expense rose $2.1 million on debt taken on in the third quarter of 2025.
Why the stock fell 13.3%
The decline was about two and a half times the size of a typical day's swing for the stock, an unusual reaction to a quarter in which revenue grew and earnings beat estimates. The jump to profit partly reflects the absence of last year's large one-off charges rather than operations alone. The $51.0 million cash balance is also small next to a company valued at about $2.7 billion, which may have weighed on how investors read the results.
What to watch next
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PAPZIMEOS revenue in the fourth quarter after the 37% sequential gain.
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Enrollment in the redosing study (NCT06538480), aimed at turning partial responders into complete responders.
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A planned R&D Day with new Phase 2 data for PRGN-2009 in HPV-associated oropharyngeal cancer.
FAQ
What is PAPZIMEOS used for?
It is the first FDA-approved therapy for adults with recurrent respiratory papillomatosis (RRP). In its pivotal study, 18 of 35 patients (51%) needed no surgery in the 12 months after treatment.
Is PAPZIMEOS approved in Europe?
Not yet. The European Medicines Agency is reviewing an application submitted in November 2025, and the drug has orphan drug designation from the European Commission.
Sources
This article is for information only and is not investment advice.