Analysts Are Expecting Gas Fermentation to Be Huge for Intrexon. Here's Why They're Wrong.
Although most of the market cap awarded to synthetic-biology conglomerate Intrexon (NYSE: XON) is derived from its potential in healthcare, analysts are beginning to eye the potential for perhaps its leading non-pharma development-stage technology platform: gas fermentation.
The idea is simple: Feed genetically engineered microbes methane from cheap American natural gas, which they'll convert into various commodity chemicals and fuels. Intrexon thinks it will be much more economically competitive than using traditional fermentation technologies, which rely on costly agricultural sugars, and better than conventional petrochemical processes.
Yet although the conglomerate and analysts are expecting gas fermentation to be huge, they seem to be overlooking some fundamental realities. Here's why bullish analysts are wrong.
Source: Fool.com
