Intrexon Corporation (XON - Free Report) incurred a loss of 28 cents per share (excluding non-cash charge of $17.8 million) in first-quarter 2019, wider than a loss of 17 cents recorded in the year-ago period and in line with the Zacks Consensus Estimate.
Total revenues came in at $23.3 million, reflecting a 41.1% decline from the year-ago quarter. The top line also missed the Zacks Consensus Estimate of $35 million.
Shares of the company have declined 33.8% year to date against the industry’s growth of 3.2%.
Recent Business Highlights
Intrexon sales primarily consist of collaboration and licensing revenues, and product and service revenues.
Collaboration and licensing revenues in the reported quarter decreased 70% from the prior-year quarter to $5.97 million.
Product revenues came in at $4.9 million, down 32.1% from the year-ago period. Service revenues totaled $11.4 million, down 7.1% 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, and 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, and milestones and other payments.
Intrexon announced alignment of its operations into two units — Intrexon Health and Intrexon Bioengineering — to better deploy resources, realize inherent synergies and drive growth with core focus on healthcare.
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., which is a gene and cell therapy company developing precision medicines, and ActoBio Therapeutics, Inc., a company focused on therapeutic delivery of biologics to the site of disease via its proprietary, ActoBiotics platform. From Jan 1, 2018, Precigen and ActoBio Therapeutics began operating as two separate entities. Both the companies are now wholly-owned subsidiaries of Intrexon.
The company entered a strategic licensing agreement with Surterra Wellness to utilize its Botticelli next generation plant propagation platform to enable rapid production of proprietary cannabis cultivars of the latter for the Florida market.
AquaBounty Technologies, Inc. (AQB - Free Report) , a subsidiary of Intrexon, announced that the FDA lifted the Import Alert on AquAdvantage Salmon (AAS) in March. Environment and Climate Change Canada has also approved the company's Rollo Bay production facility for the commercial manufacture and grow-out of AAS.