Analyst Assesses Cell-Programming Focused Ginkgo Bioworks' Positioning Amid Revenue Surge, Program Adjustments
Portfolio Pulse from Vandana Singh
Ginkgo Bioworks Holdings Inc (NYSE:DNA) reported preliminary FY23 sales of $250-$260 million, aligning with consensus estimates. The company expects cell engineering and biosecurity revenue to be within guidance ranges and anticipates adding 80-85 new Cell Programs in 2023. William Blair views Ginkgo's update positively, despite a reduced full-year program target. Ginkgo completed collaborations with Novo Nordisk (NYSE:NVO) and Biogen Inc (NASDAQ:BIIB), and its cell engineering revenue from biopharma clients grew over 50% in 2023. The company ended the year with $950 million in cash and equivalents. However, concerns about growth feasibility and financial robustness persist, leading William Blair to maintain a Market Perform rating. DNA shares dropped 5.30% to $1.43.
January 10, 2024 | 7:29 pm
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NEUTRAL IMPACT
Biogen Inc completed a gene therapy collaboration with Ginkgo Bioworks, which could be positive but lacks immediate financial impact details.
The completion of the gene therapy collaboration with Ginkgo Bioworks is a positive step for Biogen, but without specific financial impact details, it remains neutral for the short-term stock performance.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Novo Nordisk completed a pilot phase program with Ginkgo Bioworks, which may indicate a successful collaboration but has no immediate financial impact disclosed.
The completion of the pilot phase with Ginkgo Bioworks is a positive development for Novo Nordisk, but the lack of financial impact details makes it neutral for the short-term stock performance.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Ginkgo Bioworks reported preliminary FY23 sales in line with estimates and expects to add 80-85 new Cell Programs in 2023. Despite a positive update, concerns about growth and financial model persist, and shares fell 5.30%.
The report shows a positive business update with revenue in line with expectations and significant growth in cell engineering revenue. However, the stock price decline indicates market concerns about the company's growth and financial model, which could lead to continued short-term negative impact on the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100