Precigen Gains 43% in 3 Months: Is It an Indication to Buy the Stock?

Shares of Precigen PGEN have rallied 42.7% in the past three months. This stock price rally can be attributed to growing investor confidence in the strong commercial performance of the company’s sole marketed drug, Papzimeos (zopapogene imadenovec-drba), as well as broader pipeline progress.

Papzimeos is currently the first and only FDA-approved therapy for adults with recurrent respiratory papillomatosis (RRP). The drug provides Precigen with a differentiated commercial position and a potentially durable revenue base.

Precigen is also pursuing additional growth opportunities outside the United States. A marketing authorization application, seeking approval for Papzimeos to treat adults with RRP, is currently under review in Europe.

A potential approval in Europe could further boost the drug’s sales and drive revenues.

Let’s analyze Precigen’s strengths and weaknesses to understand how to play the stock amid the recent share price rally.

PGEN Thrives on Papzimeos Commercial Uptake

Papzimeos was approved by the FDA in August 2025 and was launched later in the same year. The approval of Papzimeos transitioned Precigen from a development-stage to a commercial-stage company.

Papzimeos has witnessed strong early commercial momentum since its approval and launch. In the first six months of 2026, the product generated $74.6 million in revenues. Importantly, product revenues from Papzimeos more than doubled sequentially during the second quarter of 2026.

Management noted that Papzimeos demand continues to grow as the third quarter progresses. Sales are expected to grow steadily as Precigen expands its commercial footprint and strengthens its marketing infrastructure, driving continued momentum for Papzimeos.

Meanwhile, Papzimeos benefits from seven years of FDA market exclusivity through Aug. 14, 2032. Combined with its first-in-class position and lack of an approved competing therapy for adult RRP, this protection allows Precigen to establish a durable commercial franchise before potential competitors enter the market.

Inovio Pharmaceuticals INO is developing its lead candidate, INO-3107, a DNA-based immunotherapy as a treatment for RRP.  Inovio’s biologics license application seeking approval for INO-3107 in RRP is currently under review in the United States. A decision from the FDA is expected on Oct. 30, 2026.

PGEN’s Other Pipeline Progress

Beyond Papzimeos, Precigen retains pipeline potential through its AdenoVerse platform. The company is developing PRGN-2009, an investigational AdenoVerse immunotherapy in HPV-driven cancers.

A multicenter phase II study is evaluating PRGN-2009 in combination with Merck’s MRK blockbuster PD-L1 inhibitor, Keytruda (pembrolizumab), in patients with recurrent or metastatic cervical cancer.

Merck’s biggest revenue driver, Keytruda, is approved for several types of cancers globally.

Precigen plans to provide an update on the broader AdenoVerse portfolio, including PRGN-2009, by the end of 2026.

The successful clinical development of Precigen’s pipeline candidates could help the company diversify its revenue base beyond Papzimeos. Positive data readouts and regulatory updates across its pipeline could create long-term growth visibility.

PGEN Stock Price, Valuation & Estimates

Year to date, shares of Precigen have rallied 63.9% compared with the industry’s rise of 6.1%. The stock has also outperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.

PGEN Stock Outperforms Industry, Sector & S&P 500

Image Source: Zacks Investment Research

From a valuation standpoint, Precigen is trading at a premium to the industry. Going by the price/book ratio, the stock currently trades at 56.04 times trailing 12-month book value, higher than 3.83 times for the industry. The stock is also trading above its five-year mean of 4.28.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 bottom line has improved from a loss of 2 cents per share to earnings of 25 cents over the past 60 days. During the same time, the earnings estimate for 2027 has increased from 25 cents per share to 86 cents.

Image Source: Zacks Investment Research

How to Play PGEN Stock

We remain optimistic about Precigen, buoyed by its strong performance in the first half of 2026 and continued momentum in the third quarter. Growth in Papzimeos sales should continue to boost the top line.

The company is making good progress in its pipeline development and successful data readouts from the same should further aid the stock.

While competitive risks remain, Precigen’s recent developments, growing portfolio and improving earnings estimates present an optimistic outlook. Despite its premium valuation, we believe there is more room for growth and recommend prospective investors add this Zacks Rank #1 (Strong Buy) stock to their portfolios for meaningful gains in both the short and long term. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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