On the last day of February, synthetic biology giant Ginkgo Bioworks announcedAcquisition of Two AI-Driven Drug Discovery Startups: Reverie Labs and Patch BiosciencesAnd an RNA platform company, Proof Diagnostics.The three acquisitions aim to enhance Ginkgo's platform capabilities in AI-driven drug design, machine learning-based genetic medicine design, and gene editing detection.At the time of its listing, Ginkgo's market value once exceeded $26 billion, causing a global sensation and making it an undisputed super unicorn in the synthetic biology industry.But later accused of having no core technology and products, its business model was questioned. Ginkgo's current market value is only $2.759 billion.Down nearly 90% from its peak。Despite implementing a series of self-proving measures, the results were unsatisfactory. The financial report showed honesty, with a total annual revenue of $251 million in 2023, representing a 47% decrease from the previous year.This time, Ginkgo has set its sights on the explosively popular AI, attempting to compensate for the shortcomings in its core technology and products.Just,Can AI Save Ginkgo? Is AI + Synthetic Biology a Good Business?
Three Acquisitions in One Breath
The above three acquisitions are part of Ginkgo's broader strategy to enhance its R&D products through the new Ginkgo Technology Network.Ginkgo Technology Network is a pioneering ecosystem, composed ofComposed of more than 25 partners across various fields such as artificial intelligence, genetic drugs, biologics, and manufacturing.The purpose is to enhance customer R&D programs through integrated capabilities.Ginkgo in ChinaIntegrated Platform Technology and Strategic PartnershipsWith over 15 years of experience in the field, it is a senior system integrator. Now, the company is expanding its service scope through this network and newly acquired startups.The first acquisition is Patch Biosciences, an artificial intelligence platform developer headquartered in New York.Patch Biosciences is known for its use of machine learning models and assays, which will now enhance Ginkgo's existing services, adding valuable capabilities and resources to its genetic medicine toolkit.The second acquisition is Reverie Labs, a company headquartered in Cambridge, Massachusetts, specializing in AI-driven drug discovery.This acquisition includes Reverie Labs' advanced infrastructure and software, which are crucial for training large-scale artificial intelligence foundational models.In addition, four key members of the Reverie AI team will also join the company, including Chief Technology Officer Ankit Gupta, who will serve as Ginkgo's Head of AI/ML Advancement.This integration aims to significantlyEnhance Ginkgo's AI/ML-Driven Discovery Services, and accelerate the development of the next generation of biological foundation models.The newly joined Reverie team will play a crucial role in integrating Reverie's technology into Ginkgo's expanding AI/ML infrastructure, as well as in the development and application of future AI/ML technologies in bioengineering.Ginkgo plans to integrate Reverie's models, software, and workflows to advance its AI/ML-driven experimental design infrastructure.In addition, Reverie's chemical generative AI platform will be integrated into Ginkgo's toolkit to support small molecule projects.Ginkgo's current AI/ML initiatives include Owl, an AI-guided design tool that complements the full suite of computational tools reviewed by Ginkgo’s enzyme engineering team across numerous projects.The company has also carried out a number of strategic cooperation initiatives aimed at advancing bioengineering and biosafety, includingGoogle Cloud, Merck, Pfizer, and Boehringer IngelheimCooperation.Another acquisition is Proof Diagnostics, a company that gained attention for developing a "future-proof" COVID-19 screening device.It is worth mentioning that,Proof Diagnostics was co-founded by Zhang Feng., recognized for its innovative OMEGAs technology, an emerging RNA-programmable non-Cas enzyme that offers a promising alternative to current genomic medicine tools.The purpose of acquiring Proof Diagnostics is to strengthen Ginkgo's gene therapy services by integrating OMEGA into Ginkgo's gene editing toolkit, providing a more versatile approach for genomic medicine.
This is not Ginkgo's first foray into the AI track.June 2022,GinkgoAcquired Bitome, which developed the AI engine for the GeniiTAS metabolomics monitoring platform, capable of continuously monitoring cell culture media and elucidating cellular metabolic states in real time.In October 2022, it announced the acquisition of long-time rival Zymergen, gaining the latter's AI-driven automated bio-manufacturing platform that integrates product design, microbial manufacturing, and mass production.Acquisitions are also a common method for Ginkgo to enhance its platform service capabilities. In 2022, it alsoContinuously acquired FGen AG, Altar, and Circularis, and in 2023, also acquired StrideBio's AAV capsid and vector platform assets.In addition to large-scale acquisitions, Ginkgo is also independently developing related AI algorithms and models.In December 2022, the company announced the launch of enzyme-related services "Ginkgo Enzyme Services," supported by ultra-high-throughput screening, machine learning-guided protein design, and proprietary strain optimization technology. Ginkgo can provide solutions for each step from novel enzyme discovery, activity function optimization, to large-scale production.It is reported that, leveraging its capabilities in DNA synthesis and high-throughput screening, Ginkgo synthesized 109 million DNA base pairs, screened 7,117 enzymes belonging to 12 enzyme classes, and evaluated 2,719 pathways, conducting a total of 30,445 strain tests.Including Cradle, Biomatter Designs, Cambrium, Arzeda, and Basecamp Research, all are leveraging AI/ML technologies to design novel enzymes or improve existing ones.Ginkgo Also Expands into AI through Collaborations。Last year, a partnership with Google Cloud was reached,GinkgoWill utilizeGoogle CloudVertex AI Platform, inBiologicalPioneering large language models in engineering applications,Applied in fields such as drug discovery and biosafety.Artificial intelligence plays a crucial role in advancing the development of synthetic biology by facilitating the design, construction, and optimization of biological systems.Apart from Ginkgo Bioworks, quite a few companies are also attempting toAI ApplicationsTo Synthetic Biology HealthcareSubdivision track.For example, Jura Bio, dedicated to utilizingMachine Learning and Synthetic Biology Develop New TCR Therapies.With the support of AI technology, Ginkgo Bioworks remainsInstead of producing chemicals themselves, they design organisms andIt licenses to other companies, and its business model is more like a CRO company.
Unfortunately, this business model did not bringGinkgoBring great wealth and prosperity.
On February 29, Ginkgo Bioworks announced its financial results for the fourth quarter and the full year of 2023, with total revenue of $251 million for 2023, representing a 47% decrease from the previous year.The company attributed the revenue decline in 2023 to its transformation and expansion.Company CEO Jason Kelly emphasized that 2023 was a "breakthrough year" for the company, with significant growth in the biopharmaceutical business and an ecosystem built around the Ginkgo platform. The company's strategic acquisitions and the launch of its technology network are expected to enhance its capabilities in artificial intelligence and biopharmaceuticals.But such rhetoric failed to impress investors, and the stock price plunged over 15% following the news.
The good news is that the company's net loss this year improved to $892.9 million from a $2.1 billion loss in the previous year. The year-end cash balance was close to $950 million, providing Ginkgo with a solid financial foundation to drive profitability and leverage enhanced platform efficiencies.
It needs to be affirmed that, in 2024FollowWith the continuous breakthroughs and iterations of artificial intelligence technology and high-quality data, AI will become a powerful tool to boost the development of synthetic biology.And as a synthetic biologyThingGiant of Learning，GinkgoEarly Layout AI，Highly promising, with clear goals,All alongAdhere to its business model —— Buy to Drive Sales.But the synthetic biology industry is still in its infancy and has yet to truly solve fundamental issues such as large-scale commercial fermentation.GGinkgo avoids problems, neither selects products nor produces, utilizingAIWhether its synthetic biology can be achievedThe true potential of the biologics platform remains questionable.—The End—
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