SYBX stock is making solid movement after Synlogic Inc (NASDAQ:SYBX) announced an $80 million equity investment from Ginkgo Bioworks.
Ginkgo’s Investment is Key for Synlogic
As one of the leading biopharmaceutical companies, Synlogic Inc (SYBX) makes use of synthetic biology to genetically engineer living medicines. Most recently, the company has inked an agreement with Boston biotech start-up, Gingko Bioworks.
The partnership between the two aims at expansion and overall development of Synlogic through making use of Ginkgo’s cell programming platform.
Under the arrangement, Ginkgo Bioworks is supposed to invest nearly $80 million to acquire a 20% stake in Synlogic. Through this partnership, both companies are willing to collaborate with each other for the long-term.
Synlogic will harness Ginkgo’s cell programming platform to test microbial strains in a bid to develop preclinical drug candidates to help in the treatment of individuals, which in turn would lead to clinical development ahead.
SYBX stock is now trading higher by 20.70% at $7.57. However, the stock is off from a session high of $8.80.
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CEO’s Comment
On this collaboration, Synlogic’s president and chief executive officer, Aoife Brennan, M.B., Ch.B., has commented that “this partnership between us would help towards the advancement of Synlogic’s synthetic biotic development capabilities which would help us to build a successful pilot program that we started with Ginkgo back in 2017.” Ginkgo is pleased to employ its advanced high-quality candidate strains to help expand and develop Synlogic to produce more advanced clinical programs.
Jason Kelly, Ph.D., co-founder and chief executive officer of Ginkgo Bioworks, says that both the companies will use their expertise to design and develop live medicines that would help treat the most complex diseases. The companies want to work together to advance the future of medicines.
Synlogic is aiming to build up a strong portfolio of its synthetic biotic medicines by using Ginkgo’s top class facility to program and optimize microbial strains at a large scale. Both the companies are delighted to associate with each other on this agreement and to work together to enhance each other’s synergies and to help in the treatment of the patients in a meaningful manner.
As a part of the agreement, Ginkgo has purchased 6,340,771 Synlogic stock at a price of $9 a share.
Despite today’s jump, SYBX stock is still down 50% from its 52-week high of $14.59.
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