Why Precigen Shares Are Gaining Today - Precigen (NASDAQ:PGEN)

Precigen Inc PGEN has agreed to sell its subsidiary Trans Ova Genetics, an animal reproductive technologies company, to URUS, a holding company with cooperative and private ownership.
The deal consideration includes $170 million in upfront cash and up to $10 million earn-out based on the performance of Trans Ova in 2022 and 2023.
The company anticipates closing the non-healthcare subsidiary sale in Q3 2022.
Precigen expects the transaction to solidify its balance sheet. It intends to pay the senior convertible notes when due in July 2023.
As of December 31, Trans Ova had 265 full-time and 55 part-time employees. In 2021, Trans Ova generated sales of $89.6 million.
"We believe this transaction will support Precigen's mission as a premier cell and gene therapy company laser-focused on the rapid development of our top clinical assets to maximize shareholder value and potentially improve the way devastating diseases like cancer are treated," said Helen Sabzevari, President & CEO of Precigen.
In April, the FDA granted Fast Track designation to Precigen's PRGN-3006 UltraCAR-T in patients with relapsed or refractory (r/r) Acute myeloid leukemia.
PRGN-3006 was previously granted FDA Orphan Drug Designation.
Price Action: PGEN shares are up 18.51% at $1.67 during the market session on the last check Tuesday.