Please ensure Javascript is enabled for purposes of website accessibility

Why Intrexon Is Soaring Today

By Brian Feroldi - Updated May 11, 2017 at 12:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Wall Street cheers the company's upbeat first-quarter earnings report.

What happened

After Intrexon (PGEN -5.18%), a company focused on synthetic biology, reported first-quarter earnings, its shares rose 18% as of 11:25 a.m. EDT on Thursday.

So what

Here's a review of the headline numbers from the quarter:

  • Revenue grew 24% to $53.7 million. That figure easily exceeded the $48.8 million in revenue that market watchers were looking for.
  • Net loss was $31.4 million, or $0.26 per share. That was a bit worse than the $0.23 loss that Wall Street had expected.
  • Cash balance at the end of the quarter was $205.2 million.

Financial numbers aside, Intrexon also had a slew of other recent developments to share with investors:

  • Intrexon and Darling Ingredients announced that their EnviroFlight joint venture will build a new commercial-scale production facility of insect-based feed ingredients for animal feed.
  • The company's reported that its Friendly Aedes mosquitoes achieved greater than 80% suppression of wild Aedes aegypti in Brazil in the second year of the project. 
  • Intrexon's collaborating partner, Ziopharm Oncology (ZIOP -15.15%), reported a successful end-of-phase 2 meeting with the Food and Drug Administration for Ad-RTS-hIL-12 and veledimex in treating recurrent glioblastoma. A pivotal phase 3 trial is currently in the works. 
  • Ziopharm also announced improved production times in its ongoing phase 1 trial of its second-generation Sleeping Beauty CD19 + CAR-T cells. In addition, a patient with multiple-relapsed acute lymphoblastic leukemia achieved a complete response and another patient with non-Hodgkin lymphoma was treated with T-cells manufactured by the company in just two weeks.
  • Intrexon and Ziopharm also had an IND application accepted by the FDA for a phase 1 study of the company's CD33-specific CAR+ T therapy in refractory acute myeloid leukemia (AML). Enrollment is expected to begin next quarter.
  • The company announced the formation of a new subsidiary called Precigen that is designed to "accelerate strategic evaluation of structural alternatives for consolidation of Intrexon's health-related assets to enhance shareholder value and maximize the potential of the Company's programs in health."
  • Intrexon and partner Fibrocell Science announced fast-track designation from the FDA for FCX-007 for the treatment of recessive dystrophic epidermolysis bullosa.
  • Intrexon agreed to acquire GenVec.
  • Intrexon completed the listing of its AquaBounty Technologies subsidiary on the Nasdaq.

Traders bid up Intrexon's stock in response to all of this positive news.

business man giving thumbs up

Image source: Getty Images.

Now what

Intrexon continues to offer investors multibagger potential if any of its high-risk projects pay off. However, keeping tabs on all of those projects can be quite difficult, which makes this a stock that requires a tremendous amount of homework. For that reason, this stock should probably only be owned by seasoned investors who are comfortable with volatility. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ZIOPHARM Oncology, Inc. Stock Quote
ZIOPHARM Oncology, Inc.
ZIOP
$0.50 (-15.15%) $0.09
Precigen, Inc. Stock Quote
Precigen, Inc.
PGEN
$1.28 (-5.18%) $0.07

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.