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Ginkgo Bioworks Announces Acquisition of AgBiome's Platform Assets

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Ginkgo Bioworks (NYSE: DNA) acquires AgBiome's platform assets, including over 115,000 fully sequenced strains and 500 million gene sequences, enhancing Ginkgo's ag biological discovery platform. AgBiome's validated product concepts offer a strong foundation for future developments.
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The acquisition of AgBiome's platform assets by Ginkgo Bioworks represents a strategic consolidation in the biotech sector, particularly within the agricultural biologicals space. The integration of AgBiome's extensive strain library and metagenomic data into Ginkgo's existing platform is expected to enhance Ginkgo's R&D capabilities. This move could potentially lead to the development of novel agricultural products, thereby strengthening Ginkgo's market position.

From an industry perspective, the consolidation of such extensive biological assets could result in economies of scale and scope for Ginkgo Bioworks. The addition of over 500 million unique gene sequences to their database is significant, as it enhances their ability to engineer and optimize biological systems. This could lead to more efficient and sustainable agricultural practices, which is a growing demand in the market.

However, the success of this acquisition will largely depend on Ginkgo's ability to effectively integrate and utilize the new assets. The company will need to manage the complexities of combining different technologies and data sets, which could pose operational challenges.

The acquisition of AgBiome's assets by Ginkgo Bioworks is set to advance the field of agricultural biotechnology. The access to a vast microbial strain library and a pipeline of validated product concepts can accelerate the discovery and development of bioactive ingredients and gene editing tools. This could lead to breakthroughs in crop protection, yield enhancement and soil health, addressing critical needs in sustainable agriculture.

Furthermore, the integration of such a large metagenomic database allows for the application of AI models in biological R&D, which can significantly shorten the time frame for bringing new products to market. This could be a game-changer for the industry, as it enables rapid response to emerging agricultural challenges, such as pest resistance or climate change impacts.

While the potential benefits are substantial, the acquisition also raises questions about market competition and the concentration of intellectual property within a single entity. It will be important to monitor how this affects innovation and pricing within the agricultural biotechnology market.

The announcement by Ginkgo Bioworks to acquire AgBiome's platform assets could have significant implications for investors and the broader market. By expanding its ag biologicals services, Ginkgo is positioning itself to capture a larger share of the bioagricultural market, which is anticipated to grow as global food demand increases and sustainable farming practices gain traction.

Investors should note that Ginkgo's move to consolidate its position in the ag biologicals space through this acquisition may lead to increased R&D expenditure in the short term. However, the long-term potential for revenue growth through the commercialization of new products could outweigh these initial costs. The market will be watching closely for signs of successful integration and early wins from the new pipeline of products.

It is also worth considering the impact on AgBiome's existing business relationships and product lines that were not included in the acquisition. The separation of these assets may influence AgBiome's future strategic direction and financial performance.

BOSTON, April 11, 2024 /PRNewswire/ -- Today, Ginkgo Bioworks (NYSE: DNA), which is building the leading platform for cell programming and biosecurity, announced the acquisition of AgBiome's platform assets, including over 115,000 fully sequenced and isolated strains, over 500 million unique gene sequences, and relevant functional data and metadata, as well as AgBiome's development pipeline. These assets will be integrated into Ginkgo Ag Biologicals Services, established with the acquisition of a Bayer agricultural biologicals R&D facility in 2022, and will expand Ginkgo's proprietary unified metagenomics database. Combined, this creates one of the deepest and most advanced ag biological discovery and development platforms as well as a rich resource for the development of AI models for biological R&D. 

Since its founding in 2012, AgBiome has worked to generate an extensive collection of biological products and technologies - from agricultural products, to bioactive ingredients, to gene editing tools - through its Genesis Discovery Platform. AgBiome has successfully commercialized multiple biological products, including the Howler and Theia product lines, which are not included in the acquisition. AgBiome has developed a massive microbial strain library from over 8,000 geographically diverse environmental samples. These isolates have been fully sequenced, producing a rich library with over 500 million unique gene sequences. Also included in the acquisition is a robust product concept pipeline including a dozen product candidates with greenhouse or field validation - these validated assets create a rich foundation for future partnered programs, as well as a diverse resource of metagenomic data for genomic mining and AI model training.

Michael Miille, Ginkgo Fellow: "We are so excited to bring AgBiome's incredible strain and metagenomic collection into Ginkgo. This is a world class asset that will significantly expand our capabilities and can directly benefit Ginkgo's customers in the ag biologicals space. In addition to the platform assets and capabilities, the product concepts pipeline that has been validated by AgBiome to date provides an exciting opportunity to give customers a head-start in their product development efforts." 

Laura Potter, AgBiome CSO: "These assets represent a massive, ground-breaking investment into exploring and characterizing microbial diversity for human benefit, and we can't think of a better home for them than the Ginkgo platform."

Leverage Ginkgo's R&D services and validated assets to get a headstart in ag biologicals. Visit our website at https://www.ginkgobioworks.com/offerings/ag-biologicals-discovery-development

About Ginkgo Bioworks

Ginkgo Bioworks is the leading horizontal platform for cell programming, providing flexible, end-to-end services that solve challenges for organizations across diverse markets, from food and agriculture to pharmaceuticals to industrial and specialty chemicals. Ginkgo Biosecurity is building and deploying the next-generation infrastructure and technologies that global leaders need to predict, detect, and respond to a wide variety of biological threats. For more information, visit ginkgobioworks.com and ginkgobiosecurity.com, read our blog, or follow us on social media channels such as X (@Ginkgo and @Ginkgo_Biosec), Instagram (@GinkgoBioworks), Threads (@GinkgoBioworks), or LinkedIn.

Ginkgo Bioworks Investor Contact:
investors@ginkgobioworks.com 

Ginkgo Bioworks Media Contact:
press@ginkgobioworks.com 

Forward-Looking Statements of Ginkgo Bioworks

This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the capabilities and potential success of the acquisition and Ginkgo's cell programming platform. These forward-looking statements generally are identified by the words "believe," "can," "project," "potential," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) volatility in the price of Ginkgo's securities due to a variety of factors, including changes in the competitive and highly regulated industries in which Ginkgo operates and plans to operate, variations in performance across competitors, and changes in laws and regulations affecting Ginkgo's business, (ii) the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional business opportunities, (iii) the risk of downturns in demand for products using synthetic biology, (iv) the uncertainty regarding the demand for passive monitoring programs and biosecurity services, (v) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, (vi) the outcome of any pending or potential legal proceedings against Ginkgo, (vii) our ability to realize the expected benefits from and the success of our Foundry platform programs, (viii) our ability to successfully develop engineered cells, bioprocesses, data packages or other deliverables, and (ix) the product development or commercialization success of our customers. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of Ginkgo's annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on February 29, 2024 and other documents filed by Ginkgo from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Ginkgo assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Ginkgo does not give any assurance that it will achieve its expectations.

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SOURCE Ginkgo Bioworks

FAQ

What assets did Ginkgo Bioworks acquire from AgBiome?

Ginkgo Bioworks acquired over 115,000 fully sequenced and isolated strains, over 500 million unique gene sequences, relevant functional data and metadata, as well as AgBiome's development pipeline.

What is the significance of the acquisition for Ginkgo Bioworks?

The acquisition enhances Ginkgo's ag biological discovery platform by providing a rich resource for the development of AI models and expanding its proprietary metagenomics database.

What are some of AgBiome's successful products?

AgBiome has commercialized multiple biological products, including the Howler and Theia product lines, which are not included in the acquisition.

How many gene sequences does AgBiome's microbial strain library contain?

AgBiome's microbial strain library contains over 500 million unique gene sequences.

What opportunities does the acquisition offer for Ginkgo's customers?

The acquisition provides Ginkgo's customers in the ag biologicals space with expanded capabilities and a head-start in product development efforts through validated product concepts.

Ginkgo Bioworks Holdings, Inc.

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the organism company ginkgo bioworks engineers new organisms to solve challenges across a range of industries from fuels to pharmaceutical production. our biological engineers make use of an in-house pipeline of synthetic biology technologies to design, build, and test new organisms.