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Intrexon to restructure, shift focus to healthcare under Precigen name


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Intrexon to restructure, shift focus to healthcare under Precigen name

Intrexon Corp. said it is restructuring itself to shift its focus from biotechnology to healthcare under the new name of Precigen Inc.

Precigen will span the company's majority ownership interest in Triple-Gene, its healthcare units Precigen, ActoBio Therapeutics and Exemplar Genetics and its equity and royalty in therapeutics and therapeutic platforms from companies not controlled by Intrexon.

Intrexon CEO Randal Kirk has been appointed as executive chairman of Precigen. Helen Sabzevari, who joined Intrexon in 2017 and has been president of Precigen for the past two years, will now be president and CEO of the new company.

The company has executed binding agreements to sell its smaller non-healthcare businesses for $65.2 million, plus certain contingent payment rights, and entered into an agreement to sell $35 million of its common stock.

Proceeds from these transactions, combined with the company's cash and short-term investments on hand as of Dec. 31, 2019, will be about $175 million.

The Germantown, Md.-based company entered an agreement to sell its non-healthcare units Ag Biotech Division, Intrexon Laboratories Hungary, Intrexon Produce Holdings Inc., Intrexon UK Holdings Inc., Intrexon's nominal equity interests in Oragenics and Surterra, and the internet domain name for $53 million in cash plus the contingent right to receive certain additional amounts that venture capital firm Third Security LLC may earn from these assets after closing.

Third Security, led by former CEO of Intrexon Randal Kirk, invests in technology businesses.

As per the agreement, Third Security will also buy $35 million of Intrexon's shares priced at a five-day volume-weighted average price for five consecutive days of trading, starting from the second business day after Jan. 14.

Intrexon will seek higher bids for its assets until the deal's expected close Jan. 31. If it cancels its agreement with Third Security for a better offer, Third Security will buy a number of its shares equaling the difference between $88 million of its common stock and the accepted bid.

As part of the company's change in focus, Intrexon chose to forego continuing to purchase support services from Third Security after the companies' license agreement expired Jan. 1.

Intrexon has also agreed to sell its interest in animal and plant feed producer EnviroFlight LLC to Darling Ingredients Inc. for $12.2 million in cash in a deal expected to close Jan. 2.

The company expects the sales of its assets to significantly reduce its cash expenditures toward non-healthcare businesses.

After the sale, Intrexon will retain methane bioconversion unit MBP Titan LLC and bovine genetics company Trans Ova Genetics LC as its only two non-healthcare businesses.

The company has begun the process of changing its name to Precigen and its Nasdaq stock market ticker to PGEN.

Precigen intends to adopt the role of a clinical-stage biopharmaceutical company. Previously, Intrexon developed both medical and environmental products through two units — Intrexon Health and Intrexon Bioengineering.