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Intrexon (XON) Reports Narrower-Than-Expected Loss in Q2

Zacks Equity Research

Intrexon Corporation XON incurred a loss of 21 cents per share (excluding a non-cash charge of $8 million) in second-quarter 2019, narrower than a loss of 24 cents in the year-ago period and the Zacks Consensus Estimate of a loss of 26 cents.

Total revenues came in at $36 million, reflecting a 20.5% decline from the year-ago quarter. The top line also missed the Zacks Consensus Estimate of $37 million.

Shares of the company have increased 16.5% year to date against the industry’s decline of 7.3%.

Recent Business Highlights

Intrexon sales primarily consist of collaboration and licensing, and product and service revenues.

Collaboration and licensing revenues in the reported quarter decreased 47.9% from the prior-year quarter to $9.09 million.

Product revenues came in at $7.8 million, down 18.3% from the year-ago period. Service revenues totaled $18.4 million, up 3.9% year over year.

Intrexon follows a business model, under which it commercializes its technologies through exclusive channel collaborations (ECC), licensing agreements and joint ventures with companies, which 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. and ActoBio Therapeutics, Inc. — which began operating as two separate entities from Jan 1, 2018. Precigen is a gene and cell therapy company developing precision medicines, while ActoBio Therapeutics is focused on therapeutic delivery of biologics to the site of disease via its proprietary.

Precigen announced that the first patient has been dosed with PRGN-3005, an investigational autologous chimeric antigen receptor T (CAR-T) cell therapy developed using Precigen's non-viral UltraCAR-T platform for the treatment of advanced, recurrent, platinum-resistant, ovarian, fallopian tube or primary peritoneal cancer.

ActoBio Therapeutics announced that following a review by the independent Data and Safety Monitoring Board (DSMB) it will progress to the next stage of the phase Ib/IIa study on pipeline candidate, AG019, for the treatment of early-onset type I diabetes (T1D). 

 

Intrexon Corporation Price, Consensus and EPS Surprise

 

Intrexon Corporation Price, Consensus and EPS Surprise

Intrexon Corporation price-consensus-eps-surprise-chart | Intrexon Corporation Quote

 

Zacks Rank & Other Stocks to Consider

Intrexon currently carries a Zacks Rank #2 (Buy).

Some other similar-ranked stocks from the pharmaceutical sector are Eli Lilly and Co. LLY, Novartis AG NVS and Merck and Co. MRK. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lilly’s earnings per share estimates have increased from $5.66 to $5.72 for 2019 and from $6.59 to $6.60 for 2020 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, the average being 0.69%.

Novartis’ earnings per share estimates have increased from $5.01 to $5.06 for 2019 and from $5.56 to $5.71 for 2020 in the past 60 days. The company delivered a positive earnings surprise in two of the trailing four quarters, the average being 2.84%.

Merck’s earnings per share estimates have increased from $4.73 to $4.88 for 2019 and from $5.21 to $5.37 for 2020 over the past 60 days. The company came up with a positive earnings surprise in the trailing four quarters, the average being 7.96%.

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