BOSTON - Ginkgo Bioworks (NYSE: DNA) has announced the acquisition of cell therapy platform assets from Modulus Therapeutics, a company specializing in the design of cell therapies for autoimmune diseases. The acquisition includes Modulus' libraries of chimeric antigen receptor (CAR) and switch receptor designs, which are crucial for the development of novel cell therapies.
Modulus Therapeutics' approach to cell therapy design involves a combinatorial method to create and test components that drive new cellular behaviors. Their work has led to the development of novel NK-specific and T-cell specific CAR and switch receptor designs. These designs are intended to improve the control and efficacy of immune cell-based therapies by enabling precise activation and targeting of these cells.
The addition of Modulus' assets is expected to enhance Ginkgo's existing cell therapy capabilities, particularly in the area of T-cell and NK-cell based CAR therapies used to treat solid tumors and autoimmune diseases. Ginkgo's platform allows partners to explore a wide range of therapeutic activities a CAR can produce, which is seen as a step forward in the discovery of cell therapy treatments.
Jason Kelly, CEO and co-founder of Ginkgo Bioworks, expressed excitement over the acquisition, stating that Modulus' assets will integrate seamlessly into Ginkgo's infrastructure. Max Darnell, CEO and co-founder of Modulus Therapeutics, also shared his enthusiasm, noting that Ginkgo's commitment to cell therapy innovation aligns with Modulus' goals.
Ginkgo Bioworks has previously partnered with the Wisconsin Alumni Research Foundation to develop next-generation CAR-T cell therapies and has presented data on high throughput screening methods for CAR libraries at scientific meetings. The company anticipates that the acquisition of Modulus' assets will further strengthen its research and development in the CAR-T field.
This move is part of Ginkgo Bioworks' broader efforts to establish itself as a leader in cell programming and biosecurity. The company provides services across various markets, including food, agriculture, pharmaceuticals, and industrial chemicals. The information provided is based on a press release statement.
InvestingPro Insights
In light of Ginkgo Bioworks' recent acquisition of Modulus Therapeutics' assets, a closer look at the company's financial position offers additional context to stakeholders. Ginkgo Bioworks, which trades under the ticker symbol DNA, has a market capitalization of approximately $2.24 billion.
Despite challenges in profitability, with a negative P/E ratio of -2.45 as of the last twelve months leading up to Q4 2023, the company holds more cash than debt on its balance sheet, which is a positive sign for its financial health.
From an operational standpoint, Ginkgo Bioworks has demonstrated a high gross profit margin of 78.52% during the same period, indicating a strong ability to control the cost of goods sold and maintain profitability at the gross level.
Still, the company's revenue has seen a significant decrease, with a -47.36% change over the last twelve months as of Q4 2023. This is further reflected in the quarterly revenue growth, which contracted by -64.64% in Q4 2023.
InvestingPro Tips reveal that while analysts do not anticipate Ginkgo Bioworks will be profitable this year, the company's liquid assets exceed its short-term obligations, suggesting financial resilience in the near term. Additionally, the stock has experienced a notable decline in price over the last six months, which some investors might consider as a potential buying opportunity, especially given the company's high shareholder yield.
For those interested in a deeper dive into Ginkgo Bioworks' financials and future outlook, more InvestingPro Tips are available, offering comprehensive analysis and guidance. To explore these insights and more, visit https://www.investing.com/pro/DNA and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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