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Ginkgo Bioworks acquires AgBiome's platform assets

EditorEmilio Ghigini
Published 04/11/2024, 07:37 AM

BOSTON - Ginkgo Bioworks, known for its cell programming and biosecurity platform, announced today the acquisition of platform assets from AgBiome, a leader in agricultural biology. The assets include an extensive strain library, gene sequences, and a development pipeline, which will be incorporated into Ginkgo's Ag Biologicals Services.

The acquisition comprises over 115,000 fully sequenced microbial strains and more than 500 million unique gene sequences, culled from various environmental samples worldwide. These resources will bolster Ginkgo's proprietary metagenomics database, enhancing one of the most comprehensive ag biological discovery and development platforms available.

AgBiome's established product lines, Howler and Theia, are not part of the deal. However, the acquisition does include a dozen product candidates with greenhouse or field validation, providing a substantial foundation for future partnered programs and resources for genomic mining and AI model training.

Michael Miille, a Ginkgo Fellow, expressed enthusiasm about the acquisition, stating it would significantly expand Ginkgo's capabilities and directly benefit its customers in the agricultural biologicals sector. The validated product concepts pipeline from AgBiome is seen as an opportunity to accelerate customers' product development efforts.

Laura Potter, AgBiome's Chief Scientific Officer, commented that the assets represent a significant investment in microbial diversity exploration for human benefit and that Ginkgo Bioworks is an ideal new home for these resources.

Ginkgo Bioworks, which operates across various markets, including food, agriculture, pharmaceuticals, and specialty chemicals, aims to enhance its service offerings through this strategic acquisition. The integration of AgBiome's assets is expected to advance Ginkgo's position in the field of synthetic biology and biosecurity.

This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Ginkgo Bioworks has cautioned readers not to place undue reliance on these statements, which speak only as of their date. The company does not intend to update these statements and does not assure that it will meet the expectations disclosed.

InvestingPro Insights

In light of Ginkgo Bioworks' recent acquisition, investors and industry watchers are keen to understand the financial health and future prospects of the company. According to InvestingPro data, Ginkgo Bioworks holds a market capitalization of $2.24 billion USD. Despite challenging market conditions reflected in a six-month price total return of -36.57%, the company's gross profit margin remains robust at 78.52% for the last twelve months as of Q4 2023. This indicates a solid underlying business model, even as revenue growth has experienced a significant decline of -47.36% over the same period.

InvestingPro Tips for Ginkgo Bioworks highlight a mixed financial picture. On the one hand, the company holds more cash than debt on its balance sheet, suggesting a strong liquidity position that can support ongoing operations and investments like the recent acquisition. Additionally, Ginkgo's liquid assets exceed its short-term obligations, further underscoring its financial stability. However, analysts are not optimistic about profitability in the near term, as the company is not expected to be profitable this year and has not been profitable over the last twelve months. Furthermore, Ginkgo is quickly burning through cash, which may raise concerns about long-term sustainability if not addressed.

For readers interested in a deeper dive into Ginkgo Bioworks' financials and strategic positioning, InvestingPro offers a comprehensive suite of analytics and insights. There are a total of 8 additional InvestingPro Tips available for Ginkgo Bioworks, which can be accessed at https://www.investing.com/pro/DNA. For those looking to take advantage of these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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