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HACKING MOSQUITOS Earn a 38-Fold Windfall From This Tiny Genetic Weapon! Prepared By: William Patalon III Exclusively For Private Briefing Members

HACKING MOSQUITOS - Money Morning · Hacking Mosquitos. Earn a 38-Fold Windfall From This Tiny Genetic Weapon! Dear Reader, I want to congratulate you for your decision to take action

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Page 1: HACKING MOSQUITOS - Money Morning · Hacking Mosquitos. Earn a 38-Fold Windfall From This Tiny Genetic Weapon! Dear Reader, I want to congratulate you for your decision to take action

HACKING MOSQUITOSEarn a 38-Fold Windfall From This Tiny Genetic Weapon!

Prepared By: William Patalon IIIExclusively For Private Briefing Members

Page 2: HACKING MOSQUITOS - Money Morning · Hacking Mosquitos. Earn a 38-Fold Windfall From This Tiny Genetic Weapon! Dear Reader, I want to congratulate you for your decision to take action

Hacking MosquitosEarn a 38-Fold Windfall From

This Tiny Genetic Weapon!

Dear Reader,

I want to congratulate you for your decision to take action in gaining membership to Private Briefing. You’ve just taken a step towards capturing the most explosive profit potential I’ve seen in my investing lifetime, starting with the enormous opportunity in biotech I’m about to lay out for you in this report.

And your timing couldn’t be better.

The small-cap company I’ve uncovered for you today is poised for 3,851% gains according to my research and calculations (laid out for you in this report.) But what you have to understand is that these gains won’t be linear.

As I’m going to show you, this company has the potential to turn every $1,000 of investors’ money into $39,510 as its mosquito- destroying technology takes off. But the biggest profit potential will happen sooner rather than later – within the next two years, to be exact.

As this company’s “mosquito hack” decimates the single deadliest creature on the planet – the Aedes aegypti mosquito – some of the biggest gains could be just months away as wealthy governments and firms like the World Health Organization pour resources behind it.

Its genetic solution to the mosquito menace has already brought down mosquito populations by more than 90% in targeted testing in the Cayman Islands, Panama, and Brazil – and now it’s about to gain international acceptance in an even bigger way.

Investor’s ReportFrom: William Patalon III, Executive Editor, Private Briefing

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The Miracle Technology Not Even Cash-Strapped Brazil Could Ignore

Based in Germantown, Maryland, Intrexon Corp. (NYSE: XON) is a $2.94 billion biotechnology company that focuses on biologically based products with the potential to improve quality of life for billions.

In 2015 the company shelled out $160 million to acquire Oxitec, a company based in Britain that develops genetically modified pests to help with pest control. The buyout gave Intrexon control of the gene technology to breed genetically altered Aedes aegypti mosquitos by the millions – and cut local mosquito populations dramatically in the process.

Now, $160 million might seem like a very hefty investment for a company that brought in $183.19 million in the last fiscal year, according to Yahoo! Finance.

But the investment was worth every penny because of the head start it brought Intrexon in conquering a $6 to 8 billion market no other company is close to tapping.

And the technology is already seeing rave reviews from testing sites in multiple countries.

In 2014, Oxitec unleashed its first waves of genetically altered mosquitos – nicknamed by management as “friendly Aedes” because of the effect they have on harmful mosquitos – in Sao Paolo, Brazil, with full government backing.

These “friendly Aedes” are male mosquitos, so they don’t bite (only females bite and pass on pathogens to humans.) But they do carry a gene that kills them within about four days of their being released from labs – just long enough for them to mate and pass on their fatal genes to their offspring. The process allows clouds of these “friendly Aedes” to devastate harmful mosquito populations within weeks.

With statistics showing that mosquito-spread illnesses dropped sharply after just 10 months of testing, Sao Paolo’s mayor Gabriel Ferrato

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doesn’t want them to leave. “If I had the necessary resources right now, I’d adopt the method to cover all of Sao Paolo.”

And carefully selected testing sites in Sao Paolo aren’t the only places where the OX513A gene “mosquito hack” has earned unqualified praise. The technology has also been tried in the Cayman Islands and Panama, where it’s been shown to reduce populations of the lethal Aedes aegypti mosquito by up to 90%.

Intrexon is the only company in the world that offers a genetic solution to target the Aedes aegypti mosquito – and as it’s shown to be devastatingly effective, it’s not surprising that local governments are queuing up for the benefits of testing while national ones show increasing interest.

In fact, Mayor Ferrato, who gushed over Intrexon’s anti-mosquito treatment, has directed his office to shell out $800,000 to pay for enough “hacked” mosquitos to protect another 60,000 Brazilians in his city.

That’s the beginning of an anti-mosquito splurge that officials estimate will total $2.7 million to protect the whole city.

Now, Brazil’s economy has been devastated by a collapse in commodity prices, rampant corruption, and busted state and local budgets. The fact that a single city could shell out $2.7 million for a technology still seen as experimental seems like a minor miracle.

But in terms of saving lives, economic activity, and money, it’s actually a no-brainer. Zika has already infected 1.5 million Brazilians by the government’s estimate. And while 80% of infected people experience no symptoms, the disease can be devastating to children born to infected mothers. Microcephaly, a neurological disorder causing babies to be born with deformed brains, had just 200 reported incidents in Brazil in 2014. As Zika spread, that number jumped 3,900%.

And with experts advising pregnant women to consider canceling travel plans to Rio to see the Olympics, it’s clear that the economic costs of ignoring Zika are far more expensive than the costs of confronting it. There’s no government on Earth, no matter how poor, that can afford notto act.

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It’s no wonder, then, that Puerto Rico’s resident commissioner has called for action to be taken, holding meetings on bringing genetically modified mosquitos to the territory. After all, an estimated 20% of the island’s population is at risk of contracting Zika.

That’s 700,000 people – all of them U.S. citizens.

And mainland America is also taking note of Intrexon’s technology and the potential it holds to thwart the spread of Zika. Even the FDA, notoriously slow to give its blessing to genetic technologies, has declared the “hacked” mosquito environmentally safe and gave the firm the go- ahead to conduct fast-track testing in the U.S. – in Key West, Florida – ahead of the impending Zika outbreak.

Now, Congress has offered $1.1 billion in funding to fight Zika. President Obama is demanding $1.9 billion.

Whatever the ultimate number ends up being, it has the potential to absolutely light a fire under Intrexon’s stock price, since the company reported sales of just $87 million last year.

But it turns out the profit potential is much more than the chance for the company to multiply its sales (and stock price) a few times over.

Protecting an $8 Billion “Ground Zero”Because Zika is transmitted primarily by the Aedes aegypti mosquito

that Intrexon’s OX513A “mosquito hack” targets, most of the attention around the technology has swirled around its potential to combat Zika. But the market is much bigger than that.

According to the Center for Disease Control and Prevention, about 100 million people a year suffer from Dengue fever, a harsh and sometimes deadly disease that’s also been nicknamed “break-bone fever.”

According to Bloomberg, the disease costs as much as $7.256 billion in the countries it afflicts, thanks not just to mortality rates and health care costs but also lost productivity from tens of millions of citizens being dangerously ill for weeks.

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As it happens, Dengue fever is also carried primarily by the Aedes aegypti mosquito, which is a major reason this creature is the deadliest life form known to humans, more dangerous than snakes, sharks, or any single pathogen.

The picture with malaria is even grimmer. According to the U.S. Centers for Disease Control, 1,000,000 people died of malaria spread by mosquitos last year alone, which explains why countries around the globe are spending $3 billion a year for mosquito control efforts just to fight malaria.

So you can see why the effort to roll back the scourge of mosquitos is at least a $6-8 billion market – and given the figures above, that’s a very conservative estimate.

I realize it may seem as if Washington can’t get anything done these days – not even write a check to confront one of the biggest health crises of our time. The $1.1 billion Zika funding bill flop in the Senate last month definitely doesn’t dispel that pessimism.

Indon

esia

India

Brazil

Philipp

ines

Malaysi

a

Thail

and

Mexico

Taiwan

China

Nigeria

An Expensive Disease$2.4B

$1.6B

$0.8B

$0

Source: Bloomberg View

$2.1B

$1.5B

$0.7B$0.6B $0.6B

$0.4B$0.3B$0.3B $0.3B

$0.2B

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But we could actually be on the cusp of a major funding breakthrough to conquer the virus – a breakthrough that will position the company I’ve uncovered for you to drive the $8 billion market.

As Washington Bickers, a Billionaire Buys InA Washington gridlock is nothing new – in fact, it’s been a part of the

process for every other public health scare that minted millionaires.

For example, you might remember Congress rejecting President Bush’s request for $7.1 billion in funding to fight the bird flu in 2005. But Congress’s foot-dragging didn’t prevent companies like Ceva Animal Health from exploding 11-fold as it developed an effective vaccine against bird flu.

Congress was a little quicker on the ball with Ebola, if only because the scare beginning in August 2014 was so close to a midterm election. But even then, companies like Novavax saw 17-fold increases in their stock prices with little help from Congress or the White House, thanks to their groundbreaking treatments.

Even so, Washington’s backing is an immense catalyst for any biotech to have – something Randall Kirk, the billionaire CEO of Intrexon, understands very well.

The 62-year old son of a drill sergeant, he made the beginning of his vast fortune in 2003, when he sold his biotech company Scion Inc. to Johnson & Johnson for $2.4 billion – allowing his early investors the chance to capture gains of 1,285% in the process.

Then he did it again in 2007, selling his biotech New River Pharmaceutical, which the pharma giant Shire wanted so badly it paid out $2.6 billion for it. Investors who backed his second company early on had the change to enjoy a 1,536% profit.

In 2011 he did it again, selling his third biotech to Forest Labs for $1.2 billion. If you’re sensing a pattern, you might suspect that Kirk is gearing up to repeat his M.O., where he sells his latest biotech for a multi-billion dollar profit that also happens to enrich his investors.

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But after examining the evidence – and his public remarks –his goal for Intrexon is far more lofty.

As far back as 2011, he’s resisted any overtures to buy out Intrexon. “I’ve been in biotech a long time, and Intrexon is by far the best thing I’ve ever seen,” he told Forbes.

Think about it – this is a man who has sold not one but three biotechs he’s built from scratch for a multi-billion dollar sum. He’s led companies that won FDA approvals and secured government backing for cutting edge products. But he doesn’t seem to be entertaining any idea of walking away from his company with mere billions in cash this time.

Instead, he’s working furiously behind the scenes of Washington’s gridlock to secure a favorable outcome for his company on the question of Zika funding – and he came as close to outlining his conversation with elected officials as he’s legally able to in his company’s latest earnings conference.

Of particular interest to me was when an investor, Robert Breza, asked with refreshing bluntness:

“How do we get these government officials off their lazy butts to write a check? I guess that’s the real question.”

After noting that he wasn’t fully at liberty to divulge details of his conversations with elected officials, Kirk revealed something that was nonetheless very interesting.

“As compared to this call three months ago doors that were difficult and you wondered if they were even maybe locked, suddenly seem to be swinging our way.

Three months ago, I was very frustrated, just as an American citizen I was frustrated. Today, I’m very encouraged. The meetings I have here in Washington over the next couple of days are with very, very high ranking officials of the U.S. government and several other governments and what we’re seeing around worlds now is actually impressing me.”

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You may wonder if it’s a case of another CEO putting a brave face on a private struggle. But on May 12, just days after the earnings conference, Kirk put his money where his mouth was, loading up on

$1,000,000 worth of his company’s shares.

And he didn’t stop there.

On May 30, 2016, he snatched up another $1,000,000 worth of stock, apparently not dissuaded from buying despite the fact that XON was up more than 28% since his million-dollar buy a few weeks ago.

And for good measure on June 29, 2016, he bought another $1,000,000 worth of XON stock.

Nor is it just Randall Kirk. Since the Zika outbreak began in Brazil, Intrexon’s Chief Scientific Officer Thomas Reed has bought more than 64,000 additional shares. Joel Liffman, the Senior Vice President of Finance, has bought 150,000 shares. This year alone, the company’s Chief Operating Officer bought more than $200,000 worth of shares, and last March, four board members captured $270,000 worth of stock between them.

The surge in insider buying tells me one thing: XON’s management is positioning their money for a major uptick in the company’s stock price. They’re determined to put their money in the right place at the right time.

Today, you can, too.

As I write, XON stock is down more than 20% from its June 2016 high, as traders’ overreactions to Brexit and Washington’s seeming inability to pass any meaningful action on Zika have dampened investors’ enthusiasm for the stock. But given all that I’ve explained to you here, I think that selloff is great news for investors getting in today.

Frankly, the profit potential I’ve outlined for you, combined with the entry point you can seize today, makes Intrexon a play that’s too powerful for me to ignore.

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But before I outline our strategy to tap into this growth, there’s one more thing I want to explain about the potential upside you’re looking at with Intrexon.

It’s Not Just Genetic Engineering: Intrexon Has a Hand in Every Red-Hot Sector

I’ve focused most of my research with Intrexon on its ability to multiply investors’ money while fighting Zika and other mosquito-borne illnesses because that’s the most immediate catalyst for the stock.

But it’s much more than just a mosquito-hacking company, as an examination of its pipeline reveals.

Intrexon is heavily involved in a diverse array of medical fields, from treating breast cancer (a $10 billion market in 2016) to phenylketonuria, a rare genetic disorder that nonetheless debilitates 13,000 people in the U.S.

It’s already cleared Phase I trials for treatments targeting breast cancer and malignant glioma, and it’s tantalizingly close to clearing the Phase I trial process for treatments designed to fight inflammation, oral, and autoimmune diseases.

The last one is of particular interest. According to the National Institutes of Health, more than 23 million Americans suffer from an autoimmune disorder, and costs for autoimmune complications have been pegged at a staggering $100 billion. If XON clears Phase I trials for this, it could send the stock soaring – regardless of whether or not the treatment is approved by the FDA down the road.

When you understand exactly how many irons XON has in the fire, it’s easy to see how my projected gains are, if anything, conservative. They only consider the potential the company faces from its anti- mosquito technology.

Now, realistically, XON won’t capture all of the market share for battling mosquitos in the fight against Zika, as I showed in my projection above. But it doesn’t have to – and as Washington and other governments

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show increasing acceptance of genetic technologies as tools in the fight against disease, the market could be far bigger than anyone realizes.

With all of these opportunities, it might be tempting to buy a chunk of XON stock and forget it, trusting the forces I’ve described to you to place you well on the way to making more than 38x your money over the next two years.

But here at Private Briefing, it’s never been our policy to rest on our laurels – and I’ll be monitoring Intrexon’s situation, including the review processes of some of its most promising drugs, constantly.

Action to Take: Buy Intrexon Corp. (NYSE:XON) at market and employ a 25% “trailing stop.”

We’ll be on top of this developing story the entire way.

And with a profit opportunity like this one on the table, you’ll be glad you came along.

Sincerely,

Bill Patalon Executive Editor, Private Briefing

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