Oxitec to Build State-of-the-Art Mosquito Egg Production Unit

Oxitec Ltd, a wholly owned subsidiary of Intrexon Corporation (NYSE: XON), today announced plans to build its first centralized Friendly^™ Aedes egg production unit, with the capacity to generate one billion mosquito eggs per week, in Oxfordshire, UK. The announcement comes as Randal J. Kirk, Intrexon's Chairman and CEO, joined Prime Minister Theresa May at a roundtable event in New York City for a discussion amongst a small group of CEOs regarding plans for investment and growth in Britain.

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"Intrexon is proud to announce, alongside Prime Minister Theresa May, this increased investment in Oxitec, UK, by building a state-of-the-art mosquito egg production facility," said Mr. Kirk. "Oxitec's solution will revolutionize how societies confront public health challenges posed by invasive mosquitoes that transmit devastating diseases. We are delighted to celebrate this announcement, which further enables our global expansion plans, with the UK's Head of State."

Intrexon intends to invest £7.3m ($9.5m) for Oxitec's new production unit in Oxfordshire - this is in addition to the £141m ($182m) investment since Intrexon acquired the Oxford University spinout in 2015. The unit is anticipated to create 75 new jobs.

This facility will enable egg shipments to various locations across the globe, where they will be reared and then released as part of Oxitec's environmentally-responsible Friendly^™ Aedes programs to suppress Aedes aegypti mosquitoes, the primary vector of Zika, dengue, chikungunya, and yellow fever. The new UK facility will deliver a 20-fold increase in Oxitec's existing egg production to support increasing global demand for Aedes aegypti control programs to reduce wild populations worldwide.

"This investment is a reflection of the increasing interest and traction we are now seeing for Oxitec's Friendly^™ Aedes programs, and represents a new phase in the company's development," said Mark Carnegie-Brown, Oxitec CEO. "Oxitec's technology represents a paradigm change in combating dangerous Aedes aegypti that threaten more than half of the world's population, and this factory will better position us to help countries in need of superior solutions in the fight against this invasive mosquito that carries Zika, dengue and other harmful viruses."

Over 725,000 people are killed by a mosquito bite each year. Dengue fever infects approximately 400 million people annually, causing an enormous health and economic burden in affected countries. Recently, there has been an increasing number of cases of the deadly yellow fever virus in the Americas. Additionally, the past few years have seen the emergence of chikungunya and Zika in the Western Hemisphere.  

These viruses have devastating consequences including microcephaly, Guillain-Barré syndrome, encephalitis and a variety of other serious health disorders. In the United States alone nearly 1,300 pregnant women from 44 states had lab evidence of possible Zika virus infection in 2016, including 77 reported pregnancy losses and 51 babies born with birth defects such as microcephaly and brain abnormalities, according to the Centers for Disease Control and Prevention (CDC).¹

"For the first time, we can target our enemy with surgical precision at scale without impacting the environment, beneficial insects, or human health, unlike conventional vector control methods," said Lieutenant General (Retired) Thomas Bostick, PhD, PE, Senior Vice President and Head of Intrexon's Environment Sector. "Oxitec and Intrexon are committed to developing strategies and delivering concrete solutions that benefit people and communities around the world. This new mosquito egg production unit is a critical step toward meeting our objective in supporting governments around the world in their fight against Aedes aegypti and the diseases they transmit."

¹ Morbidity and Mortality Weekly Report. 7 April 2017. 66(13);366-373. 

How Friendly^™ Aedes works 

Oxitec has been working in Aedes aegypti control for over a decade and pioneered the use of a biological method to suppress wild populations of this dangerous mosquito species through the release of Friendly^™ Aedes males, which do not bite and do not transmit diseases. When released, these males search for wild females to mate, and their offspring inherit a self-limiting gene that causes them to die before reaching functional adulthood.  Friendly^™ Aedes' offspring also inherit a fluorescent marker that allows tracking and monitoring at a level never before achieved, making the assessment of effectiveness more accurate throughout the whole Friendly^™ Aedes deployment program. Unlike other approaches, Friendly^™ Aedes mosquitoes die along with their offspring, and therefore do not persist in the environment or leave any ecological footprint.

About Oxitec 

Oxitec is a pioneer in using genetic engineering to control insect pests that spread disease and damage crops, and was founded in 2002 as a spinout from Oxford University (UK). Oxitec is a subsidiary of Intrexon Corporation (NYSE: XON), which engineers biology to help solve some of the world's biggest problems.  Follow us on Twitter at @Oxitec, on Facebook, and LinkedIn.

About Intrexon Corporation  

Intrexon Corporation (NYSE: XON) is Powering the Bioindustrial Revolution with Better DNA^™ to create biologically-based products that improve the quality of life and the health of the planet.  The Company's integrated technology suite provides its partners across diverse markets with industrial-scale design and development of complex biological systems delivering unprecedented control, quality, function, and performance of living cells.  We call our synthetic biology approach Better DNA^®, and we invite you to discover more at www.dna.com or follow us on Twitter at @Intrexon, on Facebook, and LinkedIn.

Safe Harbor Statement 

Some of the statements made in this press release are forward-looking statements.  These forward-looking statements are based upon our current expectations and projections about future events and generally relate to our plans, objectives and expectations for the development of our business.  Although management believes that the plans and objectives reflected in or suggested by these forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties and actual future results may be materially different from the plans, objectives and expectations expressed in this press release.

For more information, contact:
Oxitec Contact:
Sarah Hoey, PhD
Press Officer
Tel: +44-(0)-1235-832-393
info@oxitec.com

Intrexon Contact:
Christopher Basta
Vice President, Investor Relations
Tel: +1-(561)-410-7052
investors@intrexon.com