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SOUTH SAN FRANCISCO, Calif. & BOSTON - Twist Bioscience Corporation (NASDAQ: TWST) and Ginkgo Bioworks (NYSE: DNA) have announced the renewal of their collaboration with an updated agreement. Under the new three-year $15 million contract, Ginkgo will continue ordering DNA products from Twist without minimum purchase requirements and will prepay annually.
Twist, a company specializing in synthetic DNA tools, will provide Ginkgo with preferential pricing and receive licenses and assignments for certain long DNA technology and reagents. This acquisition is expected to enhance Twist’s portfolio in DNA synthesis. Ginkgo retains the rights to practice the intellectual property (IP) transferred to Twist. While Ginkgo’s market capitalization stands at $402 million, InvestingPro analysis suggests the stock is currently undervalued, despite facing challenges with a significant 79% decline in share price over the past year.
Emily M. Leproust, CEO of Twist Bioscience, stated that the agreement reflects their ongoing effort to serve their customers innovatively. She emphasized that the deal allows Twist to continue supplying Ginkgo with DNA and also gain IP for writing long DNA. Jason Kelly, CEO of Ginkgo Bioworks, mentioned that the updated agreement maintains their close partnership with Twist while providing Ginkgo with more flexibility in DNA orders.
Both companies have a history of collaboration, with Ginkgo being one of the early customers of Twist’s synthetic biology (synbio) offerings. The partnership is aimed at fostering advancements in the field of synthetic biology, which is a core technology for various industries including pharmaceuticals and agriculture. Ginkgo’s gross profit margin stands at an impressive 80.38%, though the company faces challenges with negative EBITDA of -$415.7 million in the last twelve months. For deeper insights into Ginkgo’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
The press release also includes forward-looking statements by Ginkgo Bioworks regarding the potential success of the partnership and Ginkgo’s cell programming platform. It cautions that actual future events could differ materially due to various risks and uncertainties.
The information for this article is based on a press release statement.
In other recent news, Ginkgo Bioworks Holdings reported a significant 37% increase in revenue from its cell engineering division for the first quarter of 2025, totaling $38 million. Despite this growth, the company’s adjusted EBITDA was negative $47 million, though it marked an improvement from the previous year’s negative $117 million. The firm has set a target to reach adjusted EBITDA breakeven by the end of 2026. Ginkgo Bioworks continues to focus on cost reduction and strategic expansion, launching new products and securing government contracts to drive future growth. The company has no bank debt and holds $517 million in cash and cash equivalents. Analysts from Bank of America and BTIG have shown interest in the company’s new revenue-generating program metric and government contracts. Additionally, Ginkgo Bioworks has been involved in a $29 million contract with ARPA-H, which is expected to be recognized over two years, significantly de-risking the revenue guidance for the year.
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