NEW YORK, May 14, 2026, 08:03 EDT
Precigen Inc. shares surged Thursday morning after revenue came in ahead of Wall Street expectations, buoyed by the company’s inaugural full commercial quarter for Papzimeos—a boost that also sharply narrowed its loss.
Precigen (PGEN) surged 14.1% in after-hours trading, hitting $4.74, MarketBeat showed at 08:02 Eastern. First-quarter revenue reached $23.25 million, clearing the Street’s $20.81 million estimate. Loss per share narrowed to 2 cents, beating the anticipated 3-cent loss.
Timing matters. Precigen, after years as a development-stage biotech, is now facing a live commercial trial: can one rare-disease therapy really generate enough revenue to sustain operations before the next funding round becomes necessary?
Precigen pulled in $21.6 million in net product revenue from Papzimeos—zopapogene imadenovec-drba—this quarter. Altogether, total revenue hit $23.3 million, a jump from $1.3 million a year earlier. Net loss narrowed to $7.9 million after last year’s much steeper $54.2 million deficit. Cash, cash equivalents, and investments totaled $56.7 million in March. Paired with expected Papzimeos contributions, management sees enough runway to reach cash-flow break-even by the end of 2026.
Chief Executive Helen Sabzevari described the PAPZIMEOS launch as “thrilling,” citing impressive revenue momentum. CFO Harry Thomasian Jr. backed that up, noting “continued strength in revenue growth” for Papzimeos during the second quarter. PR Newswire
Papzimeos targets adults dealing with recurrent respiratory papillomatosis (RRP), a rare disease causing repeated growth of benign tumors in the airways. Though surgery has long dominated treatment options, the U.S. Food and Drug Administration highlights a separate biological pathway for this medication. In key trial data, 51.4% of patients on Papzimeos managed to steer clear of surgery for a year after treatment.
Precigen isn’t chasing a rival product here. The company’s focus: replace repeated surgeries as the go-to treatment for RRP. When Papzimeos received approval, Reuters highlighted it as the first authorized therapy for a disease affecting about 27,000 U.S. adults .
For now, it’s access that’s grabbing attention. Precigen says Papzimeos already has coverage reaching about 297 million people across the U.S.—over 90% of those with insurance. The drug picked up a permanent J-code, J3404, as of April 1. That J-code means doctors and outpatient clinics can bill both commercial insurers and government programs for giving the physician-dispensed medication.
Analyst reactions arrived quickly. H.C. Wainwright raised its Precigen price target to $11 from $10 after revising its 2026 Papzimeos sales forecast to $130 million, up from $113 million, Investing.com reported. StreetInsider identified Swayampakula Ramakanth of H.C. Wainwright as the driver behind the target hike.
Citizens lifted its price target on Precigen to $11, up from $9, and maintained its Market Outperform rating, according to Investing.com. The firm flagged a first-quarter beat, with Precigen surpassing both its own forecasts and consensus, and highlighted Papzimeos coming in above the $19 million sales estimate.
Even so, the launch is just getting started. Precigen flagged that converting patient-hub signups into treated patients takes precedence right now, as hitting break-even hinges on Papzimeos receipts continuing. Cash flow gets squeezed if there’s any hitch with site activation, reimbursement, or patient uptake.
Precigen’s next big test is twofold: clinical results and financial performance. The company is gearing up to unveil new durability-of-response figures for Papzimeos at the American Society of Clinical Oncology gathering in Chicago, running May 29 through June 2. Broader plans—new geographies, pediatric launches—are still farther out and haven’t started making an impact on revenue yet.
