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Why Intrexon Corporation is Up 30% On the Day

Intrexon COO Jack Bobo

The medical industry has met a new variable, marijuana.  The cannabis plant has a wide variety of uses as it can be turned into paper or clothes and even provide medical benefit to patients globally.  The therapeutic properties of the plant have drawn the attention of scientists, and health care companies world-wide.

Intrexon Corporation (NYSE:XON) is a biotechnology and medical research company that was founded in 1998, and went public on the New York Stock Exchange in 2014.  This company has been involved with creating biologically-based products using synthetic biology through various collaborations.

Shares of XON are up to highs of 30% gains on the day, in reaction to some recent news.

Recently in hot-water over a Form 8-K gone wrong, today the biotech company Intrexon announced they were making way in medical cannabis production.  The cannabis industry has been on the rise since legalization has spread across the United States and Canada has gone fully-legal.

The company made a press release stating that they’ve developed a form of medical cannabinoid production far superior than the current industry norms.  Chris Savile, PhD, Executive Director, Commercial Operations stated that his method involves microbial fermentation to produce cannabinoids, which will “provide advantages over traditional plant-based extraction.”

The new provided method will has already been tested and scaled, approaching commercially relevant figures.  With their new method, Intrexon is effectively able to produce a kilogram of pure cannabinoids for under $1,000.

As the average market rate of cannabis has continually declined since legalization, cultivators must find lucrative ways to product cannabis at a cheaper cost to them.  Intrexon’s new microbial fermentation method could prove to be the next step in the direction of lower cost production means to combat the lower average market rate of cannabis.

 

 

 

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