Using The Promise Of Fungal Enzymes To Manufacture "APIs", Or The Raw Materials For Many Medicines: Ginkgo Bioworks, And Merck...

About a week ago, Ginkgo Bioworks announced an up to $500 million stock mix and match equity shelf offering, for longer term capital needs. This news today will help offset the decline in its share price occasioned by that coming dilution. But that raise was not one of desperation, like we are seeing in many other verticals outside of the life sciences.

It is a solid move, by a long term player. And this announcement confirms that. This is also good news for Merck, finding more environmentally friendly ways of getting from raw materials, to finished drugs and therapies. The roster of Ginko's existing collaborations reads like a who's who of 21^st Century pharma (as the first paragraph of the pull quote indicates):

. . .Ginkgo, which has also partnered with Roche, Biogen and Moderna to improve their manufacturing formulas, will develop up to four enzymes for Merck in a deal that could be worth up to $144 million if specified milestones are met.

As explained by Ginkgo, biocatalysis is an alternative to some chemical synthesis and purification steps, allowing for cost savings in manufacturing. . . .

In early 2020, Ginkgo teamed with Moderna to help process optimization for raw materials used in mRNA vaccines. A Ginkgo deal last year with Biogen was designed to develop recombinant AAV vectors. . . .

Now you know. . . smiling at the sunny fall mornings we are enjoying.

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