Intrexon Corporation (XON - Free Report) incurred a loss of 14 cents per share (excluding non-cash charge of $38.7 million) narrower than a loss of 20 cents incurred in the year-ago quarter and the Zacks Consensus Estimate of a loss of 23 cents.
Total revenues came in at $32.4 million, a 30% decline from the year-ago quarter. Revenues also missed the Zacks Consensus Estimate of $43 million.
Year to date, the stock has gained 14.7% compared with the industry’s growth of 31%.
Recent Business Highlights
Intrexon’s sales primarily consist of collaboration and licensing revenues as well as product and service revenues.
Collaboration and licensing revenues decreased 49.1% to $14.3 million.
While product revenues came in at $6.8 million, down 11% from the year-ago period, service revenues came in at $10.4 million, up 4.4% year over year.
Intrexon follows a business model, under which the company commercializes its technologies through exclusive channel collaborations (ECC), licensing agreements and joint ventures that have market and product development expertise as well as sales and marketing capabilities to bring new and improved products and processes to the market. Such agreements provide the company with funds in the form of technology access fees along with milestones and other payments.
Meanwhile, the company is developing several candidates in partnership with other companies.
Intrexon structured its principal healthcare assets into two separate wholly-owned subsidiaries — Precigen, Inc., a gene and cell therapy company, developing precision medicines, and ActoBio Therapeutics, Inc., a company focused, via its proprietary ActoBiotics platform, on therapeutic delivery of biologics to the site of disease. Effective Jan 1, 2018, Precigen and ActoBio Therapeutics began operating as standalone entities and are now wholly-owned subsidiaries of Intrexon.
ActoBio Therapeutics, Inc., and T1D Partners, LLC, announced that the first patient has been dosed in the company's phase Ib/IIa clinical trial on AG019 for the treatment of early onset type I diabetes (T1D).
The company’s collaborator Fibrocell Science, Inc. reported that the FDA granted Fast Track Designation to FCX-013, the company's clinical-stage candidate for the treatment of moderate to severe localized scleroderma. The FDA's Office of Orphan Products Development awarded Fibrocell a $1.4-million clinical trial research grant for continued clinical development of FCX-007, the company's gene-therapy candidate for the treatment of recessive dystrophic epidermolysis bullosa (RDEB).
The company’s collaborator, Oragenics, Inc. , announced the resumption of its phase II study for AG013 for the potential treatment of oral mucositis (OM).
Precigen and Ziopharm Oncology, Inc. (ZIOP - Free Report) announced a new definitive license agreement to replace all existing agreements between the companies that will provide Ziopharm exclusive and non-exclusive rights to technology controlled by Precigen, as well as securing for Precigen developmental control over the majority of its portfolio.
Zacks Rank & Stocks to Consider
Intrexon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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