Shares of Intrexon are popping in afternoon trading Tuesday after reports suggesting that its Oxitec subsidiary’s method of mosquito elimination will be supported at a congressional hearing regarding the Zika virus on Wednesday.
Daniel Neafsey, associate director at Broad Institute of MIT and Harvard, will be testifying in front of Congress at its hearing entitled “Science of Zika: The DNA of an Epidemic.” Neafsey is expected to support the use of DNA-based techniques to eradicate Zika.
One such technique is Oxitec’s DNA manipulation strategy that would implement the controlled release of a genetically modified breed of mosquitoes into the wild. When bred with wild mosquitoes, this modified breed produces offspring that cannot reproduce. The basic idea is that the mosquitoes will simply kill themselves off over time.
(Also Read: These Two Companies Are Working On The Zika Virus Cure)
The current Zika outbreak has, for the most part, been contained to South America. Just a few hundred cases have been confirmed in the United States, all of which are related to travel in other affected areas. Nevertheless, Wednesday’s congressional hearing will focus on the science of controlling and preventing an epidemic in the U.S.
Oxitec’s method of prevention is certainly a long way from any sort of FDA approval, but the company is gearing up to test its system with controlled releases in Florida. Back in April, shares of Intrexon plummeted over 23% in one day after a report slammed Oxitec’s technique and highlighted the 10,000 signature strong petition to ban the tests.
Regardless, tomorrow’s hearing and the subsequent reaction from Congress will be extremely important for Oxitec and all Intrexon investors going forward.
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Intrexon (XON) Stock Pops As Congress Hears Zika Testimony
Shares of Intrexon are popping in afternoon trading Tuesday after reports suggesting that its Oxitec subsidiary’s method of mosquito elimination will be supported at a congressional hearing regarding the Zika virus on Wednesday.
Daniel Neafsey, associate director at Broad Institute of MIT and Harvard, will be testifying in front of Congress at its hearing entitled “Science of Zika: The DNA of an Epidemic.” Neafsey is expected to support the use of DNA-based techniques to eradicate Zika.
One such technique is Oxitec’s DNA manipulation strategy that would implement the controlled release of a genetically modified breed of mosquitoes into the wild. When bred with wild mosquitoes, this modified breed produces offspring that cannot reproduce. The basic idea is that the mosquitoes will simply kill themselves off over time.
(Also Read: These Two Companies Are Working On The Zika Virus Cure)
The current Zika outbreak has, for the most part, been contained to South America. Just a few hundred cases have been confirmed in the United States, all of which are related to travel in other affected areas. Nevertheless, Wednesday’s congressional hearing will focus on the science of controlling and preventing an epidemic in the U.S.
Oxitec’s method of prevention is certainly a long way from any sort of FDA approval, but the company is gearing up to test its system with controlled releases in Florida. Back in April, shares of Intrexon plummeted over 23% in one day after a report slammed Oxitec’s technique and highlighted the 10,000 signature strong petition to ban the tests.
Regardless, tomorrow’s hearing and the subsequent reaction from Congress will be extremely important for Oxitec and all Intrexon investors going forward.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>