On Monday, Stifel maintained a positive stance on Precigen Inc. (NASDAQ:PGEN), raising the biotechnology firm's price target from $7.00 to $10.00, while reiterating a Buy rating on the stock. The increased target follows the company's presentation of phase 2 data for PRGN-2012, a therapeutic candidate for recurrent respiratory papillomatosis (RRP), at the American Society of Clinical Oncology (ASCO) meeting.
The analyst from Stifel highlighted that the phase 2 data for PRGN-2012 mirrored the favorable early phase 1 results, showcasing what was described as a best-case scenario. This led to an adjustment in the model, increasing the probability of success to 95% and assuming an orphan-drug pricing of $300,000 per patient. The combination of these factors contributed to the $3.00 increase in the price target.
Investors had anticipated confirmation of the phase 1 data, expecting a complete response (CR) rate of 40-50%. The reported 52% CR rate, coupled with strong durability, was seen as uncontroversial in terms of the phase 2 efficacy data. Moreover, the safety profile was noted to be favorable, with the majority of adverse events classified as Grade 1.
Precigen's management has confirmed their intention to begin the Biologics License Application (BLA) submission process in the second half of 2024. This timeline suggests that PRGN-2012 could potentially be introduced to the RRP market the following year. According to Stifel's analysis, the clinical profile of PRGN-2012 could provide Precigen with a significant competitive edge over its peers in the field.
The upgrade in the stock price target and the maintained Buy rating by Stifel reflect a positive outlook for Precigen's stock, as the company advances its therapeutic candidate towards potential market entry.
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