BOSTON - Ginkgo Bioworks (NYSE: DNA) has announced the acquisition of specific assets from Reverie Labs, a company specializing in AI and machine learning (AI/ML) for drug discovery. The transaction includes Reverie's AI infrastructure and software, aimed at reinforcing Ginkgo's AI/ML-driven discovery services and expediting the development of biological foundation models.
Four key AI team members from Reverie, including CTO Ankit Gupta, will join Ginkgo to support the integration of Reverie's technology into Ginkgo's AI/ML infrastructure and further the application of AI/ML techniques in biological engineering. Gupta, as the new Head of AI/ML Advancement at Ginkgo, will be instrumental in advancing the company's AI-guided experimental design infrastructure and generative AI platform for chemistry, potentially enhancing small molecule program support.
Anna Marie Wagner, SVP of Corporate Development and Head of AI at Ginkgo Bioworks, expressed enthusiasm for the acquisition, highlighting the extensive capabilities of Reverie's platform and the potential benefits for Ginkgo's customers across various discovery challenges.
Jonah Kallenbach, CEO and co-founder of Reverie Labs, conveyed his eagerness to integrate their technology with Ginkgo's data repository, which he anticipates will lead to the creation of some of the world's leading AI models for engineering biology and chemistry.
Ginkgo's current AI/ML efforts include Owl, an AI-guided design tool, and strategic partnerships with companies like Google (NASDAQ:GOOGL) Cloud, Merck, Pfizer (NYSE:PFE), and Boehringer Ingelheim, focusing on engineering biology, biosecurity, biologic manufacturing, novel RNA molecule discovery, and therapeutic molecule development.
The information in this article is based on a press release statement from Ginkgo Bioworks.
InvestingPro Insights
As Ginkgo Bioworks (NYSE: DNA) fortifies its AI/ML capabilities with the acquisition of Reverie Labs' assets, investors may find the company's financial health and market performance to be of particular interest. Ginkgo's strategic move to enhance its discovery services and biosecurity initiatives is reflected in some key metrics and insights from InvestingPro.
InvestingPro Data reveals that Ginkgo Bioworks holds a market capitalization of approximately $3.02 billion. Despite facing a challenging period with a revenue decline of 40.33% over the last twelve months as of Q3 2023, the company maintains a strong gross profit margin of 75.36%.
Investors should note that while the company has been experiencing significant returns, with an 18.6% price total return over the last month, Ginkgo Bioworks is not expected to be profitable this year. This is further underscored by a negative P/E ratio of -3.33, which suggests that the company is currently not generating earnings to support its share price.
InvestingPro Tips highlight two essential aspects of the company's financial positioning. Firstly, Ginkgo Bioworks holds more cash than debt on its balance sheet, which provides a cushion against financial uncertainties. Secondly, the fact that liquid assets exceed short-term obligations indicates a strong liquidity position, enabling the company to meet its immediate financial responsibilities.
For investors and analysts looking to delve deeper into Ginkgo Bioworks' prospects and performance, additional InvestingPro Tips are available, including analysts' expectations on sales and profitability. To access these valuable insights and more, visit https://www.investing.com/pro/DNA and use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional tips listed on InvestingPro to guide your investment decisions in Ginkgo Bioworks.
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