- Wednesday, October 16, 2024
Ginkgo Bioworks has surged by 10% to $1.90 as it joins forces with Pfizer to focus on the exploration of RNA-based drug candidates. Despite hitting a 52-week low of $1.12 on May 3, the company remains optimistic about its future prospects, having experienced a 34% decline in the past year.
Pfizer will leverage Ginkgo's exclusive RNA technology in order to advance the identification and development of pioneering RNA molecules within priority research sectors. As part of the collaboration, Ginkgo is set to receive an upfront payment and will also be eligible for research fees, as well as development and commercial milestone payments, amounting to a potential sum of $331 million across three programs. Moreover, Ginkgo will be entitled to additional royalties based on sales, establishing a promising downstream value.
Will Somers, the head of Biomedicine Design at Pfizer, expressed his enthusiasm for the partnership, stating that "access to Ginkgo's proprietary platform will help enable Pfizer to search for novel and exciting RNA constructs with improved stability and expression that could lead to more effective treatments."
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