BOSTON - Ginkgo Bioworks (NYSE: DNA), a $500 million market cap company specializing in cell programming and biosecurity, has announced a collaboration with Carnegie Mellon University to develop bioelectronic devices for diagnosing and treating hormone disorders. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, despite facing profitability challenges. The project, funded by a subcontract of up to $9.4 million from the Advanced Research Projects Agency for Health's (ARPA-H) Resilient Extended Automatic Cell Therapies (REACT) program, aims to create cell-based systems that can monitor and manage chronic diseases such as thyroid disorders, diabetes, and obesity.
The initiative, named the Biointegrated Implantable Systems for Cell-based Sensing and Therapy (BIO-INSYNC), focuses on implantable devices that use engineered cells to produce therapeutic molecules on demand or to measure disease biomarkers in real time. With a strong current ratio of 5.79 and more cash than debt on its balance sheet, InvestingPro data shows Ginkgo maintains solid financial flexibility to pursue such innovative projects. Discover 11 more exclusive insights about DNA's financial health with an InvestingPro subscription. These devices are expected to function for at least one year post-implantation and will be demonstrated using thyroid disorders as sample diseases. Patients and healthcare providers could monitor the disease and control drug delivery status remotely through a smartphone.
Jesse Dill, Business Development Lead at Ginkgo Bioworks, expressed enthusiasm for the project's potential to offer new ways to monitor and treat chronic diseases, which pose a high public health burden. Mike Nehil, Senior Director of Mammalian Engineering at Ginkgo, highlighted the company's strong capabilities in mammalian cell engineering as a valuable contribution to the academic-led initiative.
Dr. Burak Ozdoganlar, leading the BIO-INSYNC project at Carnegie Mellon University, emphasized the transformative potential of the therapies being developed through this multidisciplinary effort, which also involves researchers from the University of Pittsburgh, University of Florida, and University of California–Santa Cruz.
This partnership reflects Ginkgo's commitment to addressing complex health challenges by collaborating with academic institutions and innovative funding agencies. The project is set to advance Ginkgo's capabilities in engineering mammalian cell systems for complex disease treatment. While the company reported revenue of $218 million in the last twelve months, investors should note that analysts don't anticipate profitability this year. For a comprehensive analysis of Ginkgo's financial outlook and detailed metrics, access the full Pro Research Report available exclusively on InvestingPro.
The information in this article is based on a press release statement from Ginkgo Bioworks.
In other recent news, Ginkgo Bioworks Holdings (NYSE:DNA) Inc. has shared its third-quarter financial results of 2024, revealing strategic progress and significant cost reductions. Despite a 20% decrease in cell engineering revenue, the synthetic biology company achieved a $9 million milestone with Merck (NS:PROR) and reported growth in active programs and customers. The company also noted substantial improvements in adjusted EBITDA and updated its full-year revenue guidance.
As part of its restructuring strategy, Ginkgo Bioworks reduced its workforce by 35% and consolidated sites, aiming for an annualized cost reduction of over $200 million by mid-2024. The biosecurity segment generated $14 million with a 28% gross margin in response to the H5N1 spread. The company maintains a strong cash position of $616 million and carries no bank debt.
Ginkgo Bioworks anticipates reaching adjusted EBITDA breakeven by mid-2026 and expects one-time restructuring costs between $18 million and $22 million. These recent developments underscore the company's commitment to cost management and efficiency improvements while expanding its product offerings.
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