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Intrexon (XON) Q4 Loss Wider than Expected, Revenues Lag


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Shares of Intrexon Corporation XON rose more than 8% on Mar 2, since it announced its fourth-quarter 2016 results. However, on a year-to-date basis, shares of the company have lost 3.1%, while the Zacks classified Medical-Medical Services industry gained 7.5%.

Intrexon reported adjusted loss per share of 26 cents in the fourth quarter of 2016. Adjusted loss excluded shares issued as compensation for services bad debt expense and equity in net loss of affiliates. In fact, this loss was wider than the Zacks Consensus Estimate loss of 23 cents.

Total revenue came in at $46 million in the quarter, up 11% year over year. Reported revenues were, however, below the Zacks Consensus Estimate of $52 million.

Quarter in Detail

Intrexon's revenues primarily consist of collaboration and licensing revenues as well as product and service revenues.

Collaboration and licensing revenues increased 31.2% to $27.7 million.
While product revenues came in at $7.7 million, down 16.7% from the year-ago period, service revenues came in at $10.3 million, down 4.2% 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 collaborators that have market and product development expertise as well as sales and marketing capabilities to bring new and improved products and processes to market. Such agreements provide the company with funds in the form of technology access fees along with  milestones and other payments.

Intrexon is also developing several candidates in partnership with other companies.

During 2016, the FDA granted Fast Track designation to Fibrocel Science, Inc. FCSC for FCX-007 for the treatment of recessive dystrophic epidermolysis bullosa as well as to Oragenics, Inc. OGEN for ActoBiotics AG013 for the treatment of oral mucositis. Also, the FDA granted Orphan Drug designation to Agilis Biotherapeutics' AGIL-FA for the treatment of Friedreich's ataxia as well as to Fibrocell's FCX-013 for the treatment of linear scleroderma.  Moving ahead, we expect investors' focus to remain on further developmental updates by the company.

2016 Results

For 2016, adjusted loss came in at 76 cents per share.

Revenues came in at $190.9 million, which is an increase of 10% year over year.

Zacks Rank & Key Picks

Intrexon is a Zacks Rank #3 (Hold) stock. Another better-ranked stocks in the health care sector includes Sunesis Pharmaceuticals SNSS which carries a Zacks Rank #2 (Buy). You can see  the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.

Sunesis' loss estimates narrowed by 5.06% and 8.80% for 2016 and 2017, respectively, over the past 30 days. The company recorded a positive earnings surprise in three of the last four quarters, the average being 0.54%.

Intrexon Corporation Price, Consensus and EPS Surprise

Intrexon Corporation Price, Consensus and EPS Surprise | Intrexon Corporation Quote

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: FCSC , XON , SNSS , OGEN



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