Shares in Ginkgo Bioworks shares leveled out after a pre-market boost spurred on by the announcement of their collaboration with Merck & Co Inc (NYSE:MRK).
The partnership aims to enhance biologics manufacturing. Ginkgo will use its expertise in cell engineering, screening, protein characterization, and process optimization to boost production efficiency and yields.
As part of the agreement, Ginkgo could earn up to $490 million, which includes upfront research fees, milestone fees, and commercial payments.
This collaboration marks the second time the two companies have teamed up.
In October 2022, they initiated a project to improve Merck's pharmaceutical ingredient manufacturing.
Shares traded 0.7% lower Monday morning at $2.03.