Ginkgo Bioworks and Merck’s Collaboration Worth Up to $144 million

Ginkgo Bioworks entered into a collaboration with Merck for the creation of up to four enzymes. Merck intends the utilization of these enzymes as biocatalysts in active pharmaceutical ingredient (API) manufacturing efforts. 

Along with an upfront research and development fee, set milestone payments have the potential of doling out $144 million to Ginkgo. 

Related Article: Moderna Gets $250 Million from MSD in Personal Cancer Vaccine Licensing Option

Ginkgo and Merck’s Cell Programming Collaboration

Leveraging their experience in cell programming, Merck enlisted Ginkgo in the development of biocatalysts designed for accelerating their manufacturing. Derived from natural sources, these biocatalysts are enzymes pivotal in numerous reactions. Already various pharma, food, and chemical industries make use of such engineered reactions. 

Merck will use Ginkgo’s enzymes for the improvement of its API manufacturing. With over 72% of API manufacturing taking place outside the US, the companies hope this deal assists in shoring up US manufacturing. This is an especially prudent goal after supply chains took a massive hit with the COVID-19 pandemic. 

On the collaboration, Behzad Mahdavi, Senior Vice President of Biopharma Manufacturing and Life Sciences Tools at Ginkgo, said, “Ginkgo’s fungal strains present a major opportunity for improving biocatalysis. E. coli is currently the mainstay host for expressing enzymes, but a large number of enzymes will not express properly in E. coli, and those that do express in E. coli may have better homologs that only express in fungal strains. This enzyme optimization project with Merck has the potential to help reduce the cost of goods and enable a more robust supply chain for APIs.”

The collaboration between Merck and Ginkgo comes at an especially notable time for both companies. Earlier this month, Ginkgo announced the acquisition of Altar, an adaptive laboratory evolution company, and Circularis, a cell and gene therapy company, on the same day. 

Meanwhile, Moderna and Merck announced the exercise of an option worth $250 million under a licensing agreement from 2016 for the development of a personal cancer vaccine. 

Though the amount of the upfront payment is currently unknown, Ginkgo’s payment could very well total up to $144 million, pending certain development milestones.

Author

Max Heirich