Why Is Ginkgo Bioworks (DNA) Stock Up Today?

Cell programming company Ginkgo Bioworks (NYSE:DNA) is in the green today on promising new collaboration announcements. DNA stock is up more than 10% heading into market close as investors seem pleased by the news.

An image of a DNA helix
Source: Yurchanka Siarhei/Shutterstock

So, what do you need to know about Ginkgo lately?

Well, on Monday Ginkgo announced the launch of BiomEdit, a new microbiome company. As per the announcement, the company is expected to “discover, develop and introduce novel probiotics, bioactive molecules, engineered microbial medicines and microbial monitoring services for animal health.”

The project is a collaboration between Ginkgo and Elanco (NYSE:ELAN), a global animal health company. BiomEdit will likely end up creating its own line of products intended to enhance animal health. This includes “medicated feed ingredients, nutritional health and therapeutics for livestock and pet species, as well as biosecurity technology for animal disease monitoring.”

However, this isn’t the only news out of Ginkgo lately.

DNA Stock Soars on New Collaborations

Monday’s partnership announcement with Elanco was quickly joined by another collaboration yesterday. Indeed, Ginkgo is collaborating with Persephone Biosciences to develop a new therapeutic treatment based on the Bacteroides bacterial genus. The announcement delved into the relevance of the treatment:

“Bacteroides species are among the most common members of the microbiota of animals, especially in the gastrointestinal tract, and are likely a useful tool for stable and long-term delivery of microbial medicines … Persephone is pioneering the use of synthetic biology for the development of microbial products that impact patient and infant health, which requires the ability to engineer Bacteroides strains for therapeutic applications.”

Persephone, an early-stage biotech company, specializes in synthetic biology. The partnership should enhance and accelerate the development of Persephone’s treatments with Gingko’s engineering capabilities and scale.

Clearly, Ginkgo investors have plenty to be hopeful for given the company’s recent deals.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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