3 Things You Need to Know if You Buy Ginkgo Bioworks Today

Core Insights - Ginkgo Bioworks aims to become a leading biotech partner in the biopharma sector through low-cost bioengineering and biomanufacturing services, but it currently faces significant challenges [1][2] Group 1: Biofoundry and Automation - Ginkgo's biofoundry provides a platform for biotech and pharma companies to design and cultivate microorganisms at scale, generating desired outputs like biomolecules [3] - The company utilizes custom-built laboratory automation hardware, specifically reconfigurable-automation carts (RACs), to create a highly automated and customized workflow [5][6] - The efficiency of RACs compared to traditional high-throughput solutions is a critical factor for the company's operational success [7][8] Group 2: Financial Health - As of the first quarter, Ginkgo had $840 million in cash and cash equivalents, with operating expenses of $215.9 million, leading to a net cash decrease of $102.3 million [9] - The company has initiated a cost-cutting campaign aimed at reducing expenses by approximately $200 million annually, including a 25% reduction in personnel costs [10][11] Group 3: Stock Performance and Delisting Risk - Ginkgo's stock has declined by 42% over the past year, with a current share price of around $0.74, below the $1 minimum bid price required by the New York Stock Exchange [12][13] - The company has been warned about potential delisting and has six months to regain compliance, with options such as a reverse-share split or announcing new initiatives to boost share price [13][14]