BOSTON - Ginkgo Bioworks (NYSE: DNA), a company focused on cell programming and biosecurity, has announced the introduction of Ginkgo Datapoints, a new service designed to facilitate the training of artificial intelligence (AI) models in the field of biotechnology. The service will provide large-scale, high-quality biological datasets, with the first products available this fall, including offerings in protein characterization and functional genomics.
The flagship product, Functional Genomics, currently available, aims to support AI models used in target identification, validation, and drug discovery. Ginkgo Datapoints seeks to address industry challenges related to data availability, quality, and uniformity, which are critical for the training of AI models in life sciences.
According to Jason Kelly, CEO of Ginkgo Bioworks, Ginkgo Datapoints represents a significant advancement in the company's mission to simplify biological engineering. By offering large datasets at a competitive price, the service is expected to accelerate innovation and the development of new therapies within the biotech industry.
John Androsavich, General Manager of Ginkgo Datapoints, highlighted the growing demand for data by drug and product developers who are increasingly relying on AI. The service is designed to be flexible and customizable, allowing customers to provide their own sequences or library inputs and select from various dataset parameters.
Ginkgo Datapoints leverages Ginkgo's automated lab infrastructure to deliver data points efficiently, with the potential to provide millions of data points within a three-week timeframe. The service also offers volume discounts and attractive deal terms, with customers retaining ownership of the data generated.
This initiative is an evolution of Ginkgo's previous Lab Data-as-a-Service offerings and underscores the company's commitment to enabling the full potential of AI in biology. While the press release contains forward-looking statements regarding the service's capabilities, it also acknowledges the competitive and regulated nature of the industry, as well as the risks and uncertainties that could impact the success of Ginkgo Datapoints.
The information for this article is based on a press release statement from Ginkgo Bioworks.
In other recent news, Ginkgo Bioworks has been at the center of several significant developments. The company retained its Buy rating and $3.00 price target from TD Cowen, reflecting its growth in the AI sector, particularly in AI-driven drug discovery. This was further bolstered by the expansion of its partnership with Google (NASDAQ:GOOGL) Cloud and the introduction of an open API. However, the New York Stock Exchange (NYSE) has delisted Ginkgo Bioworks' public warrants due to low trading price levels, though this does not affect the company's Class A common stock.
Ginkgo Bioworks has also regained compliance with NYSE's listing standards after a period of non-compliance and the implementation of a 1-for-40 reverse stock split. Despite a 20% decrease in cell engineering revenue to $36 million, the company continues to expect cell engineering revenue between $120 million to $140 million for the full year. BTIG and Goldman Sachs (NYSE:GS) have adjusted their price targets for Ginkgo Bioworks to $7.00, maintaining a Sell rating. These are recent developments that investors should take into consideration.
InvestingPro Insights
As Ginkgo Bioworks (NYSE: DNA) launches its Ginkgo Datapoints service to enhance AI model training in biotechnology, investors and industry watchers are closely monitoring the company's financial health and market performance. According to InvestingPro data, Ginkgo Bioworks holds a market capitalization of $379.38 million. Despite the innovative strides in services like Ginkgo Datapoints, the company's revenue has seen a decline of 43.45% over the last twelve months as of Q2 2024, with a gross profit margin remaining strong at 80.22%. This indicates that while Ginkgo is able to maintain high margins on its products and services, it is facing challenges in growing its top-line revenue.
The stock price has experienced significant volatility, with a notable return of 9.13% over the last week, yet a steep decline of 59.56% over the last three months. This suggests that while there may be short-term gains, investors have concerns about the company's longer-term performance. One of the InvestingPro Tips highlights that Ginkgo Bioworks is trading at a low revenue valuation multiple, which could be a point of interest for value investors seeking companies with potential upside. Additionally, the company holds more cash than debt on its balance sheet, providing some financial stability amidst the cash burn concerns.
While Ginkgo Bioworks does not pay a dividend to shareholders, which may be a drawback for income-focused investors, it's worth noting that the company's liquid assets exceed its short-term obligations, indicating a degree of liquidity that could support its operations and investment in initiatives like Ginkgo Datapoints. For those interested in a deeper dive into the company's prospects, InvestingPro offers a total of 16 additional tips available at https://www.investing.com/pro/DNA, which can provide further guidance on Ginkgo Bioworks' valuation and performance metrics.
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