This Analyst Believes Precigen's Non-Healthcare Divesture Removes Financial Overhang

  • Yesterday, Precigen Inc PGEN agreed to sell its non-healthcare subsidiary to URUS.
  • HC Wainwright says they are encouraged by the divestiture of the company's non-core business and believe management deserves much credit, especially against the backdrop of the challenging macro environment. 
  • Related: Why Precigen Shares Are Gaining Today?
  • The analyst believes the completed transaction would remove the financial overhang related to the approximate $200 million convertible notes that mature in July 2023. 
  • The company ended the March quarter with cash and equivalents of $142.1 million.
  • "We believe this transaction not only strengthens Precigen's balance sheet by providing a substantial amount of non-dilutive cash but also helps focus the company's resources on developing its clinical assets," the analyst added.
  • The Trans Ova divestiture could potentially drive more investors' attention onto Precigen's healthcare-focused portfolio, says HC Wainwright.
  • The firm maintains its Buy rating on PGEN with a price target of $10 per share.
  • Price Action: PGEN shares are down 9.20% at $1.47 during the market session on the last check Wednesday.

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