Shares of Ginkgo Bioworks experienced a 10% surge on Wednesday, following a period of decline that saw the stock hitting a 52-week low of $1.12 and recording a yearly decrease of 34%. The uptick came after the company announced a collaboration with pharmaceutical giant Pfizer (NYSE:PFE) to advance novel RNA molecules in priority research areas.
The agreement promises Ginkgo an upfront payment, potential commercial milestone payments, research fees totaling up to $331 million across three programs, and royalties from future sales. This could provide a significant financial boost for Ginkgo, whose shares have been under pressure over the past year.
Will Somers, Pfizer's head of Biomedicine Design, highlighted the potential benefits of the collaboration. He emphasized the possibilities for enhanced stability and expression of RNA constructs, which are central to many modern therapeutic approaches including Pfizer's own COVID-19 vaccine.
The partnership between Ginkgo and Pfizer underscores the growing importance of RNA research in pharmaceutical development. It also marks a potential turnaround for Ginkgo's stock performance, offering investors a glimmer of hope after a challenging year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.