Precision BioSciences Inc . (NASDAQ:DTIL), a biotechnology company specializing in genome editing with a market capitalization of $36.74 million, has provided a preliminary financial update, suggesting a solid cash position and an extended operational runway.
According to a recent 8-K filing with the U.S. Securities and Exchange Commission, the company reported an unaudited estimate of approximately $108.5 million in cash, cash equivalents, and restricted cash as of December 31, 2024. InvestingPro data shows the company maintains a strong current ratio of 9.22, indicating robust short-term liquidity.
The company received an additional $2.5 million from TG Therapeutics (NASDAQ:TGTX) and other inflows in January 2025. Precision BioSciences anticipates that its current financial resources, along with expected operational receipts and disciplined fiscal management, will sustain its operations into the second half of 2026.
This projection includes the potential near-term cash from CAR T transactions and the availability of an at-the-market (ATM) facility. While the company has demonstrated impressive revenue growth of 43.62% in the last twelve months, InvestingPro analysis indicates the company is quickly burning through cash - one of several crucial insights available to subscribers.
The extended cash runway is expected to support the advancement of two wholly owned programs through Phase 1 clinical trials data readouts in 2025 and 2026. The company's financial audit for the year ended December 31, 2024, is still ongoing, and there could be changes to the preliminary figures.
Furthermore, the company disclosed a transaction under a License Agreement with TG Therapeutics, receiving a deferred payment of $2.5 million and issuing 220,712 shares of its common stock to TG Therapeutics on January 6, 2025. This agreement grants TG Therapeutics license rights to develop and commercialize non-oncology applications of Precision's allogeneic CAR T therapy, azer-cel.
Precision BioSciences' forward-looking statements indicate management's current expectations regarding financial stability and research progress. However, these statements are subject to risks and uncertainties that could affect the company's financial condition and operational plans.
This financial update, based on the 8-K filing, reflects the company's status as of the recent filing and is not a definitive statement of its financial position or operational results for the year ended December 31, 2024. According to InvestingPro's Fair Value analysis, the stock appears to be trading below its intrinsic value, with analysts predicting profitability this year.
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In other recent news, Precision BioSciences has made significant strides in its gene-editing technology. The company received approval for its Clinical Trial Application (CTA) in Hong Kong for PBGENE-HBV, marking a significant milestone in the development of in vivo gene editing therapies. This approval allows the company to extend its ELIMINATE-B Phase I trial to Hong Kong, targeting chronic hepatitis B (HBV).
BMO Capital maintained its Market Perform rating and $34 target for Precision BioSciences, focusing on the clinical development of PBGENE-HBV, which recently received CTA approval. The company is expected to deliver clinical data for this program in 2025.
Furthermore, Precision BioSciences has initiated a Phase 1 clinical trial for PBGENE-HBV, a potential cure for chronic hepatitis B. The company has also reshuffled its clinical leadership team, appointing Dr. Murray Abramson as Senior Vice President, Head of Clinical Development, and John Fry as Strategic Clinical Advisor.
In addition, the company received a $13 million convertible note payment from Imugene Limited, further strengthening its financial resources. Precision BioSciences' collaborator, iECURE, received FDA Fast Track designation for its gene therapy candidate ECUR-506.
The company has also submitted additional Clinical Trial Applications as part of its global strategy for PBGENE-HBV.
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