Zika Pandemic May Push U.S. to Approve Intrexon's (XON) OX513A - Griffin Securities

Griffin Securities analyst Keith Markey reiterated a Buy rating and $65 price target on Intrexon (NYSE: XON), citing the company's opportunity related to the Zika pandemic, which has been linked to serious brain damage in infants.

Markey notes the company's Oxitec subsidiary has an environmentally friendly answer to the Zika pandemic, which is largely transmitted via the Aedes aegypti and Aedes Albopictus mosquitoes, which also carry the dengue fever virus.

"The Company’s genetically modified, male Aedes aegypti mosquito (OX513A) has demonstrated an ability to knock down local mosquito populations in a species-specific manner," the analyst explains. "It has undergone extensive testing in different environments (jungle, rural populated regions, and cities) where it has bred with wild-type females generating offspring that die at the pupa and larva stages. Moreover, it does not pose a threat to predators that may consume them or their offspring, and their impact on a local wild Aedes aegypti population is not accompanied by an increase in other mosquito species."

The analyst notes OX513A has already been approved for sale in Brazil, and they believe the Zika pandemic will motivate other countries, including the United States, to approve it.

"Indeed, President Obama addressed the need for a rapid solution last night. Intrexon’s product offers an environmentally friendly and possibly more effective alternative to toxic pesticides," the analyst said.

He added, "At this juncture, the Pan American Health Organization is advising countries that have not had cases yet to be on the alert for Zika symptoms and countries with the virus to take measures to monitor for geographic expansion and sudden disease outbreaks; implement vector control methods, including minimizing mosquito breeding habitats (e.g., standing water); and identify Zika virus lineages. The U.S. CDC has issued similar guidance that also includes avoiding travel presently to 22 countries."

For an analyst ratings summary and ratings history on Intrexon click here. For more ratings news on Intrexon click here.

Shares of Intrexon closed at $26.37 yesterday.

You May Also Be Interested In

• Tesla Crash Into Texas Home Now Under Federal Safety Probe - WSJ
• SpaceX signs compute deal with Reflection - CNBC
• Taysha Gene Therapies (TSHA) PT Raised to $10 at BofA Securities