Ginkgo Bioworks put $80 million into Synlogic (NSDQ:SYBX) last week in a deal to use its cell programming technology to accelerate development of Synlogic’s synthetic biotic medicine program.
Boston-based Gingko acquired some 6.3 million SYBX shares and warrants for another 2.5 million shares at $9 apiece; Synlogic then paid $30.0 million back to Gingko for five years worth of synthetic biology services. The deal gives Cambridge, Mass.-based Synlogic exclusive rights to any synthetic biotic medicines that come out of the collaboration, including intellectual property.
“This collaboration significantly enhances Synlogic’s synthetic biotic strain optimization capabilities and builds on the successful pilot program we began with Ginkgo in late 2017. It enables us to advance high-quality candidate strains into development more efficiently and provides technology and resources that will fuel pipeline expansion as we continue to advance our existing clinical programs,” president & CEO Aoife Brennan said in prepared remarks. “Ginkgo has built a world-class infrastructure for programming and optimizing microbial strains at a large scale which will be instrumental in the development of our portfolio of Synthetic Biotic medicines. We are excited to establish this agreement and to work together to advance meaningful treatments for patients.”
“The ability to program living cells to sense and respond to treat complex diseases has great potential. Synlogic’s platform for designing and developing living medicines that can treat a wide range of dynamic diseases has the potential to be transformative to the next generation of pharmaceuticals,” added Gingko co-founder & CEO Jason Kelly. “Based on the success of our pilot work with the Synlogic team, we’re doubling down on our collaboration to grow this powerful engine for the future of medicine together.”
SYBX shares closed down -0.6% at $9.42 apiece yesterday.
