Intrexon Responds To Seeking Alpha Post, Citron Chimes In
Shares of Intrexon Corp (NYSE: XON) were trading higher by 2 percent on Friday following Thursday's notable decline.
Intrexon's stock plunged by more than 20 percent after Spotlight Research published a report on Seeking Alpha titled "Intrexon: The Public Markets' Theranos Part 1 - Zika Virus Hype Is Nonsensical."
The scathing post argued the company's technology "has recently been questioned by high-ranking officials from the WHO, CDC and NIH" and "Smart money is hitting the "eject" button and leaving retail investors holding the bag."
On Friday, Intrexon responded to the Seeking Alpha post in a press release. The company described the article as being "a materially false and misleading report regarding the company, its subsidiaries and its chairman and CEO."
Intrexon stated it has received information which suggests the "source of the report was a particular hedge fund seeking to discredit Intrexon" and "intended to benefit from trading activity caused thereby."
"Based on this information, Intrexon believes that it is the target of a campaign to manipulate trading in the company's securities, interfere with the company's business operations, and destroy the reputation of the company and its chairman and CEO," the company added in its press release. "Intrexon, with the advice of counsel, is taking appropriate steps in light of these developments. In the meantime, we wish to assure our investors, collaboration partners, and employees that the company remains dedicated to advancing our business and to generating value for our shareholders."
Citron Research Chimes In
Notable short selling firm Citron Research commented on the latest development involving Intrexon.
Citron Research stated it was long shares of Intrexon in August 2015 but sold its position as it " found none of the company's businesses to have any imminent viability."
Citron Research added that it comments the work of Spotlight Research given a somewhat similar view that Intrexon's "businesses are too scattered" and "not as they appear to be."
"what has bothered us about Intrexon is while the company has not been shy about going to investment conferences and selling stock offerings, they were never able obtain a smart money biotech shareholder," Citron Research added. "If they don't get it, then we don't get it. We look forward to reading more on the name."
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