Synlogic Secures $80 Million Strategic Investment from Ginkgo Bioworks to Advance Live Biotherapeutic Pipeline

VCBeat (WeChat ID: vcbeat) learned from foreign media that on June 12, biotechnology company Synlogic announced a partnership with synthetic biology company Ginkgo Bioworks to jointly accelerate the advancement of its drug candidates into human clinical trials.

Under the announced agreement, Synlogic will have access to thousands of microbial strains and related technologies tested by Ginkgo Bioworks to identify suitable drug candidates. As part of the transaction, Ginkgo Bioworks made an approximately $80 million equity investment in Synlogic. The investment was executed through the purchase of stock and preferred stock warrants, both priced at $9 per share. Reportedly, Synlogic’s share price rose by more than 23% following the completion of the deal.

Synlogic is a biotechnology company based in Cambridge, Massachusetts, USA, founded in 2014. The company focuses on the intersection of biology and engineering, pioneering applications in synthetic biology by leveraging advanced technology platforms to artificially design and synthesize therapeutic microbes, thereby developing novel live biotherapeutic products capable of curing diseases. Currently, Synlogic primarily focuses on diseases in three areas: metabolism, inflammation, and cancer.

Synlogic’s drug candidates primarily consist of specific live bacteria, each engineered to treat a particular disease. The initial live bacterial strain developed by Synlogic was *E. coli* Nissle, a non-pathogenic strain isolated from the human body. This bacterium, which functions as a probiotic in the human gut, was subsequently adopted by Synlogic as the “chassis” for its therapeutic development. These bacteria are designed to help regulate diseases associated with metabolic dysfunction in the human body. This technology was originally pioneered by Massachusetts Institute of Technology professors James Collins and Timothy Lu.

Currently, Synlogic has two projects in early-stage clinical trials. One is SYNB1020, which is in Phase I clinical trials for the treatment of hyperammonemia, a condition caused by the accumulation of ammonia in the body, also known as urea cycle disorders. The other is SYB1618, also in Phase I clinical trials, for the treatment of phenylketonuria. Phenylketonuria is an inherited metabolic disorder that can lead to the accumulation of phenylalanine in the body. Preliminary trial data from both studies are expected to be announced in the third quarter of this year.

Aoife Brennan, CEO of Synlogic, stated that the company will leverage the investment from Ginkgo Bioworks to launch four new projects within the next six months, with an additional project slated for the following year. Furthermore, Synlogic will present details of the Synlogic/Ginkgo pilot program focused on rare metabolic disorders at the “Synthetic Biology: Engineering, Evolution & Design” conference later this month. Reportedly, this agreement expands upon the pilot collaboration between the two companies that commenced in 2017.

Aoife Brennan added, “The ability to collaborate closely with Ginkgo Bioworks will help Synlogic make greater contributions in relevant therapeutic areas and expand into new fields.”

Ginkgo Bioworks is a synthetic biology company that specializes in engineering custom microbes for its clients. The company has developed a technology that leverages artificial intelligence and associated software to design microorganisms. Initially, Ginkgo Bioworks focused on developing microbes for the production of consumer goods, such as beverages and fragrances. In recent years, however, it has expanded its business scope to include drug development. In addition to its current collaboration with Synlogic, Ginkgo Bioworks maintains close partnerships with Bayer and the Cronos Group.

Recently, Ginkgo Bioworks also acquired Warp Drive Bio’s genome mining assets, which include bioinformatics software and a database of more than 135,000 genomes. Jason Kelly, CEO of Ginkgo Bioworks, stated that these resources will be leveraged in the company’s collaboration with Synlogic to help it design and develop microbes at scale and low cost. Synlogic has also paid Ginkgo Bioworks $30 million in service fees.

(Compiled by Wang Chan)