Shares of Ginkgo Bioworks Holdings Inc (NYSE:DNA) jumped 16% premarket following the announcement of a potentially lucrative tie-up with pharmaceutical giant Pfizer Inc (NYSE:PFE).
The partnership aims to leverage Ginkgo's cutting-edge RNA technology to discover and develop novel RNA molecules for "priority research areas".
Ginkgo will receive an unspecified upfront payment and could earn up to $331 million across three programs. The deal also includes potential royalties on sales, adding further downstream value for Ginkgo.
RNA therapeutics, which encode proteins to treat or cure diseases, represent a groundbreaking approach in medicine.
Ginkgo's technology will focus on improving the production, stability, and effectiveness of each RNA construct.
Will Somers, head of biomedicine design at Pfizer, hopes the collaboration will lead to "more effective treatments".
Before the bell, Ginkgo stock was marked up 27 cents to $2.