The Approaching 'Vast Opportunity' For Intrexon

• Intrexon Corp. XON has seen a 10.6 percent increase in its share price year to date, with the shares achieving a high of $68.71 on August 5.
• Wunderlich’s Rob Breza has reiterated a Buy rating and price target of $70 on the company.
• Following investor meetings with Intrexon,Breza expressed optimism regarding the company having vast opportunities with “measurable upcoming outcomes.”

Analyst Rob Breza believes that “large opportunities exist within the Energy, Oncology, and related markets,” and stated that “XON remains one of the best positioned synthetic biology companies with its diversified platform and differentiated business model.”

Intrexon is expected to build out the pilot plan for its Energy segment by the yearend. The company also expects to drive higher yields from its methanotroph platform.

According to the Wunderlich report, “XON has bio-engineered methanotrophs with new “software” components for methane-consuming bacteria to generate isobutanol.”

The management intends to achieve potential commercialization in 2017 and has entered into an agreement with Dominion for “commercial-scale construction plants in Marcellus/Utica basins.”

In the oncology segment, the company has recently announced that Merck-Serono has selected its first two CAT-T targets, a deal that Breza believes has meaning milestones as well as royalties to Intrexon.

“XON’s JV with Sun Pharma related to ocular gene therapy is yet another event to monitor as management believes they are making good progress and this program could move into the clinic within the next 12 months,” the report stated.
The company has also entered into an exclusive channel collaboration with ZIOPHARM Oncology, Inc. ZIOP to develop cellular therapy options for GvHD, an auto immune disorder.