What caused PGEN's earnings decline in 2024?

Precigen Inc. (PGEN) experienced a significant decline in earnings in 2024, with a net loss of $126.2 million, or $(0.47) per share, compared to a net loss of $95.9 million, or $(0.39) per share, in 2023. The primary causes of this earnings decline can be attributed to several factors: 1. **Increased Research and Development Costs**: The costs associated with the PRGN-2012 clinical trial and commercial readiness efforts increased by $4.5 million, or 9%, which significantly contributed to the rise in net losses. This increase was due to the advancement of this lead asset towards commercialization. 2. **Reduced Product and Service Volumes**: There was a decrease of 37% in product and service volumes at the company's Biopharmaceuticals segment, which resulted in a reduction of $2.3 million in total revenues compared to the previous year. This decline was primarily due to the strategic reprioritization of the pipeline and a suspension of certain clinical programs, leading to workforce reductions and related severance expenses. 3. **Severance Costs and Workforce Reductions**: The company undertook a strategic reprioritization, which led to a reduction of over 20% of its workforce. This resulted in increased severance costs and higher commercial readiness costs, reflected in the selling, general, and administrative expenses. 4. **Impairment Charges**: Precigen recognized impairment charges of $34.5 million related to goodwill and other noncurrent assets following the suspension of ActoBio's operations. Additionally, there was a $5.8 million impairment charge related to Exemplar. In summary, the decline in PGEN's earnings in 2024 was primarily driven by increased research and development costs, reduced product and service volumes, severance costs and workforce reductions, and impairment charges. These factors combined to result in a significant net loss for the company. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |PGEN|PGEN.O|Precigen|2023 Q1|-18.092566619915846|-2.2734E7|185| |PGEN|PGEN.O|Precigen|2023 Q2|-15.219733484547774|-2.0319E7|185| |PGEN|PGEN.O|Precigen|2023 Q3|-122.65418464390758|-1.9795E7|185| |PGEN|PGEN.O|Precigen|2023 Q4|-49.06204906204906|-3.3056E7|185|