Proactive Investors - Run By Investors For Investors

Synlogic stock jumps after it gets $80M from Ginkgo Bioworks to ramp up pipeline

CEO Aoife Brennan says Ginkgo’s 'world-class infrastructure' will fuel pipeline expansion as the company advances its existing clinical programs
A researcher in a lab
Synlogic’s synthetic biotic medicines are made from beneficial, probiotic bacteria and treat cancer, metabolic and inflammatory diseases

Synlogic Inc (NASDAQ:SYBX) saw its stock jump on Wednesday after biotech Ginkgo Bioworks agreed to provide an $80 million equity investment at a premium to Synlogic as part of a long-term strategic platform collaboration.

Cambridge, Massachusetts-based Synlogic will use Ginkgo’s cell programming platform to build and test thousands of microbial strains to advance drug candidates more quickly.

Investors gave a thumbs up to the news, sending shares up nearly 22.5% to $7.68.

READ: CytoDyn stock jumps as investor focus shifts to leronlimab as CymaBay flames out

Synlogic’s synthetic biotic medicines are made from beneficial, probiotic bacteria and treat cancer, metabolic and inflammatory diseases.

The probiotic bacteria are intended to help regulate a dysfunctional metabolic pathway or trigger an immune response that treats disease. The company’s so-called "living medicines" technology is based on research done by MIT professors James Collins and Timothy Lu.

Living medicines 

“This collaboration significantly enhances Synlogic’s synthetic biotic strain optimization capabilities and builds on the successful pilot program we began with Ginkgo in late 2017,” said Synlogic CEO Aoife Brennan. “It enables us to advance high-quality candidate strains into development more efficiently and provides technology and resources that will fuel pipeline expansion as we continue to advance our existing clinical programs.”

Brennan said Ginkgo has built “world-class infrastructure” for programming microbial strains at large-scale which will help Synlogic develop its portfolio of synthetic biotic medicines.

Ginkgo Bioworks co-founder and CEO Jason Kelly said the ability to program living cells to “sense and respond to treat complex diseases” has great potential.

“Synlogic’s platform for designing and developing living medicines that can treat a wide range of dynamic diseases has the potential to be transformative to the next generation of pharmaceuticals,” said Kelly.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

View full PROAC profile View Profile

Proactiveinvestors Timeline

Related Articles

Students in a class
August 27 2018
The company is gaining traction in Asia where people are looking to take language courses to work or study internationally
clapperboard
March 04 2019
At the Completion Contract business there have been lower volumes and the average budget per film has reduced
marketing
January 29 2019
“With the geopolitical landscape remaining in flux, clients are looking for greater certainty from their marketing programmes which our agencies and data businesses are proving able to provide"
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use