Pfizer Is Sending Ginkgo Bioworks (DNA) Stock Higher: Here's Why

Ginkgo Bioworks Holdings Inc DNA shares are trading higher Wednesday after the company announced a collaboration with Pfizer Inc PFE focused on the discovery of RNA-based drug candidates.

What To Know: Under the collaboration, Pfizer will use Ginkgo's RNA technology to advance novel RNA molecule discovery and development. 

Ginkgo will receive an upfront payment and is eligible to receive fees and milestone payments of up to $331 million across three planned programs. The company is also entitled to potential royalties on sales down the road. 

"RNA therapeutics are proving to be an important platform to advance the world of scientific innovation, and with progress in synthetic biology we have the potential to create new RNA treatments that may benefit patients worldwide," said Will Somers, head of biomedicine design at Pfizer.

"Access to Ginkgo's proprietary platform will help enable Pfizer to search for novel and exciting RNA constructs with improved stability and expression that could lead to more effective treatments."

See Also: Uncertainty Looms Over Pfizer's Oral COVID-19 Antiviral Pill - Doubts Over Commercial Approval

DNA Price Action: Ginkgo shares were up 16.6% at $2.01 at the time of publication, according to Benzinga Pro.

Photo: R-region from Pixabay.