Ginkgo Bioworks (NYSE: DNA) drops 1.21% to trade at $2.86 in early trading session on Tuesday after The company announces a cooperation with Merck & Co., Inc. (NYSE: MRK), known as MSD outside the United States and Canada, to create up to four enzymes for use as biocatalysts in Merck’s API production activities. Ginkgo will use its extensive experience in cell engineering and enzyme design, as well as its capabilities in automated high throughput screening, manufacturing process development/optimization, bioinformatics, and analytics, to deliver optimal strains for the expression of targeted biocatalysts through this collaboration.
In industrial chemical synthesis, biocatalysis offers a more sustainable and frequently more effective alternative to some chemical synthesis stages. Enzyme biocatalysts’ intrinsic stereospecificity can decrease expensive synthesis and purification stages, lowering production costs. Ginkgo hopes to refine numerous biocatalysts through this cooperation by using its world-class proprietary fungal strains, cell line creation, enzyme engineering and optimization, and multiomics capabilities.
Senior VP of Biopharma Manufacturing and Life Sciences Tools at Ginkgo, Behzad Mahdavi stated that Ginkgo’s fungal strains offer a significant chance for increasing biocatalysis. E. coli is now the most common host for enzyme expression, although many enzymes will not express effectively in E. coli, and those that do may have superior homologs that only express in fungal strains. This enzyme optimization initiative with Merck has the potential to cut costs and enable a more resilient API supply chain.
The co-founder and CEO at Ginkgo, Jason Kelly said, “Merck is a pioneer in biocatalysis, improving manufacturing of crucial medicines. We’re thrilled to be partnering with Merck, and to be leveraging our platform capabilities for improved enzyme activity and production. “Ginkgo’s platform model enables us to identify improved enzymes and develop powerful fungal strains and fermentation processes for enzyme manufacturing, empowering downstream API production for our customers.”
Ginkgo will receive an upfront research and development fee as well as success-based research and development milestone payments under the terms of the cooperation. Furthermore, Ginkgo is entitled to receive commercial milestone payments for each of a set number of biocatalysis targets, which may amount up to $144 million in total.
