Precigen, Inc. (Nasdaq: PGEN) announced it has secured a $125 million credit facility with investment funds managed by Pharmakon Advisors, LP, marking a significant milestone as the biopharmaceutical company prepares for the commercial launch of its novel immunotherapy PAPZIMEOS. The non-dilutive financing provides $100 million at closing, with an additional $25 million available through March 31, 2027.
Strategic Positioning for Commercial Launch
"I am pleased to announce this non-dilutive financing with Pharmakon, a respected leader in strategic life sciences funding," said Helen Sabzevari, PhD, President and CEO of Precigen. "This fortifies our position for robust US commercialization of PAPZIMEOS, our groundbreaking novel immunotherapy, while also supporting efforts to expand to international markets and pursue pediatric and additional HPV-related indications."
The financing comes as Precigen transitions from a development-stage company to a commercial entity, with PAPZIMEOS (zopapogene imadenovec-drba) positioned as its lead therapeutic for recurrent respiratory papillomatosis (RRP) in adults. The company's CEO emphasized that Precigen has demonstrated the strength of its innovative therapeutic platforms and is advancing into the next stage as a commercial company.
Financial Structure and Terms
The credit facility is structured across two tranches with specific terms designed to provide financial flexibility. The first tranche of $100 million was funded at closing, while the second tranche of $25 million can be drawn at Precigen's discretion through March 31, 2027, subject to certain conditions.
The facility will mature on the fifth anniversary of the closing date and bears interest at a variable rate equal to 6.50% plus three-month secured overnight financing rate (SOFR) with a SOFR floor of 3.75%. Precigen retains the option to prepay the facility in whole at any time, subject to prepayment fees.
Harry Thomasian, Jr., Chief Financial Officer of Precigen, noted that "strengthening our balance sheet provides us with the financial flexibility to commercialize PAPZIMEOS while advancing our broader strategic objectives as Precigen enters a period of projected significant growth."
Therapeutic Pipeline and Market Expansion
PAPZIMEOS represents Precigen's flagship immunotherapy targeting HPV-related conditions, with the company planning expansion beyond its initial indication. The financing will support efforts to pursue pediatric applications and additional HPV-related indications, potentially broadening the therapeutic's market reach.
Precigen specializes in developing precision medicines across core therapeutic areas including immuno-oncology, autoimmune disorders, and infectious diseases. The company's approach focuses on advancing scientific breakthroughs from proof-of-concept through commercialization.
Industry Partnership and Advisory Support
Pharmakon Advisors, LP, established in 2009, serves as a leading investor in non-dilutive debt for the life sciences industry and manages the BioPharma Credit funds. The firm has committed over $10 billion across 59 investments, bringing significant experience in strategic life sciences funding to the partnership.
Evercore served as financial advisor and Davis Polk LLP provided legal counsel to Precigen, while Akin served as legal advisor to Pharmakon Advisors. The transaction reflects the growing interest in providing non-dilutive financing solutions to biopharmaceutical companies approaching commercialization milestones.
