A Fresh Look at Precigen (PGEN) Valuation Following Q3 Revenue Growth and Widened Net Loss

Precigen (PGEN) just released its Q3 earnings, drawing attention from investors with revenue rising to $2.92 million compared to the same period last year. However, net losses expanded significantly.

See our latest analysis for Precigen.

Following the release of Precigen’s third quarter earnings, the share price has shown remarkable momentum, with a 1-month share price return of 20.62% and a tremendous year-to-date gain of 257.41%. While the expanded net loss may have rattled some nerves, long-term total shareholder return sits at 337.20% over the past year. This suggests that investors still see long-term potential despite the mixed headlines.

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With shares surging despite widened losses, investors are now debating whether Precigen’s rapid rise is justified by underlying fundamentals or if further upside remains. Could this be a buying opportunity, or has the market fully priced in future growth?

Price-to-Book of -31.3x: Is it justified?

Precigen’s reported price-to-book ratio stands at -31.3x, which is substantially below the industry average of 2.5x. With a last close price of $3.86, this negative multiple stands out dramatically against peers.

The price-to-book ratio compares a company's market value to its book value—a key benchmark for biotech stocks. Negative values like this usually reflect that a company has liabilities significantly exceeding its assets, which is often a warning sign to investors but can also flag unique situations in early-stage biotech firms.

In Precigen’s case, the negative equity and deeply negative price-to-book ratio underscore its highly speculative profile. This contrasts sharply with the broader US Biotechs industry, where positive ratios are typical. The market is firmly pricing in future potential rather than balance sheet strength, given the company’s current losses and higher risk funding sources.

Compared to both industry (2.5x) and peer averages (6.4x), Precigen’s -31.3x multiple is a strong outlier. This reflects both its ambitious growth forecasts and risky financial structure. Investors should keep in mind that without positive equity, this multiple may be difficult to interpret as a reliable valuation tool.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of -31.3x (ABOUT RIGHT)

However, risks such as volatile earnings or negative equity could quickly dampen sentiment if future results disappoint or if cash needs outpace expectations.

Find out about the key risks to this Precigen narrative.

Build Your Own Precigen Narrative

If you think there's more to Precigen’s story, or you want to dive deeper into the numbers, you can easily craft your own analysis in just a few minutes. All you have to do is Do it your way.

A great starting point for your Precigen research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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