PGEN - Precigen to sell Trans Ova Genetics for $170M upfront

• The shares of the development stage biotech Precigen ( NASDAQ: PGEN ) climbed in the pre-market Tuesday after the company announced an agreement to sell its wholly-owned non-healthcare subsidiary, Trans Ova Genetics, to URUS.
• Per the terms, URUS, a holding company focused on the agriculture industry, will acquire the animal reproductive technologies company, Trans Ova, for $170M in upfront cash, in addition to $10M based on its performance in 2022 and 2023.
• The transaction, expected to close in 3Q 2022, will strengthen its balance sheet and largely complete its initiatives to focus exclusively on healthcare, Precigen ( PGEN ) said, noting its commitment to pay certain senior convertible notes when due in July 2023.
• “We expect to have the capacity to pay the convertible notes upon maturity and to focus on fast regulatory paths for our healthcare portfolio," Precigen ( PGEN ) Chief Executive Helen Sabzevari remarked.
• Read: Precigen ( PGEN ) shares surged in April on FDA’s Fast Track Designation for candidate targeting relapsed or refractory acute myeloid leukemia.

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