Progenity, Inc. (PROG) is down 52.34% in the current market trading session at the price of $0.71 despite any recent news.
PROG Announced $40 Million Pricing to Public Offering
On 19th August 2021, PROG declared underwritten public offering of 40,000,000 shares of its common stock and warrants to purchase up to 40,000,000 shares of its common stock. Each share of common stock is being sold combined with one warrant. The warrants have an exercise price of $1.00 per share and will expire five years after the issuance. PROG anticipates receiving gross proceeds of roughly $40 million from the underwritten public offering.
Second Quarter 2021 Financial Results
On 12th August 2021, PROG published a corporate update and disclosed financial results for the second quarter ended 30th June 2021. Net loss for the three months ended 30th June 2021 was $78.5 million. Net loss per share was $1.23 during this period. A net loss of $32.3 million or $0.56 per share was reported for the three months ended 31st March 2021. For the three months ended on 30th June 2021, the net loss was $78.5 million or $1.23 per share. A net loss of $53.1 million or $6.11 per share was reported for the three months ended on 30th June 2020.
Operating expenses were $36.1 million for the three months ended 30th June 2021, compared to $31.6 million for the three months ended 31st March 2021. Operating expenses were $36.1 million for the three months ended on 30th June 2021. Operating expenses of $26.5 million were reported for the three months ended on 30th June 2020.
In the second quarter of 2021, PROG initiated a strategic transformation directed at reducing its cash burn rate. It has enforced cost-cutting measures that are anticipated to result in cost savings of almost $97 million on an annual run-rate basis. Moreover, it plans to continue to assess and execute further cost-saving measures.
Completion of Clinical Validation Study
On 29th July 2021, PROG announced the successful completion of the clinical study of its Preecludia rule-out test for preeclampsia. The PRO-104 clinical study is an upcoming, multi-center, and observational study with near 1,300 enrolled courses.
Chief Scientific Officer, Matthew Cooper commented that they are proud to achieve the primary endpoint of the PRO-104 study protocol. He demonstrated that the Preecludia test can considerably differentiate between the presence and absence of preeclampsia, with the initial unblinding and analysis performed by a third party.
