Intrexon Corporation (NYSE:XON) Q3 2018 Earnings Conference Call Transcript

Nov 08, 2018 • 05:30 pm ET


Intrexon Corporation (NYSE:XON) Q3 2018 Earnings Conference Call Transcript


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Good day, and welcome to the Intrexon Third Quarter 2018 Financial Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference over to Steven Harasym, Vice President of Investor Relations. Please go ahead.

Steven Harasym

Welcome to Intrexon's Third Quarter 2018 Investor Call. I'm Steve Harasym, Vice President of Investor Relations at Intrexon, and I'm joined by Bob Walsh, Senior Vice President of Energy and Fine Chemicals; Nir Nimrodi, Intrexon's CBO; Thomas Bostick, Intrexon's COO; and Joel Liffmann, Senior Vice President of Finance. R.J. Kirk, our CEO, will join us for Q&A at the end of the call.

During this conference call, we will make various forward-looking statements. Investors are cautioned that our forward-looking statements are based on current expectations and are subject to risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by our forward-looking statements. Please read the safe harbor statement contained in the earnings press release today as well as Intrexon's most recent SEC filings for a more complete description. This afternoon's press release and our discussions may reference certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA per share. We use these financial measures as a more accurate estimate of our ongoing financial position. Reconciliations to GAAP measures are contained in earnings press release as well as on our Investors section on our website.

On today's call, we will provide an overview of our core businesses, highlighting progress over the last quarter, with a focus on what we anticipate to be near-term drivers of shareholder value. The recap will be followed by a financial update from Joel Liffmann, and we'll conclude with a Q&A session, which will be led by our CEO, R.J. Kirk.

Next slide. Before we jump into the business update, I would like to begin by highlighting the paradigm that is so unique and exciting to Intrexon. Engineered biology is the largest industrial revolution the planet has ever seen. Intrexon's precision engineering capabilities and the best and brightest scientists make us the technical and industrial leader in the field. The attainable values give us the opportunity to pursue targets that are difficult technologically but promising for global health. At the same time, we meter our approach by augmenting our platforms for use across multiple targets. We will be highlighting this throughout today's call.

I would now like to turn the call over to Bob Walsh for an update on our energy and fine chemical programs.

Robert F. Walsh

Thank you, Steve. Next slide, please. Intrexon's proprietary Methane Bioconversion Platform turns low-cost natural gas into higher-value fuels and chemicals, using a type of bacteria called methanotrophs. These bacteria naturally metabolize methane, which is the primary component of natural gas. Current technologies to upgrade methane into liquid products have both high operating expenses and capital model(ph), in addition, do not scale down efficiently. They can only be deployed in limited geographies such as the Middle East and Africa. Our approach