Collaboration between Merck and Ginkgo Bioworks for Improving Biologics Manufacturing Achieves First Milestone

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On Nov. 12, 2024, Ginkgo Bioworks, a provider of a cell programming platform and biosecurity, announced that it has completed the first milestone of its previously announced partnership (1) with Merck, known as MSD outside of the United States and Canada, which aims to improve biologics manufacturing. Under the initial agreement in August 2023, Ginkgo will receive a research milestone payment of $9 million in cash upon completion.

Under their partnership, Ginkgo uses its expertise and capabilities in cell engineering, ultra-high-throughput multiplexed screening, protein characterization, and process optimization to improve biologics production efficiency and increase yields. The company is eligible to receive up to $490 million in aggregate of upfront research fees, research milestone fees, option license payments, and commercial milestone payments (1).

"We're excited to achieve the first milestone of our collaboration with Merck and continue our work to improve biologic manufacturing production," said Jason Kelly, CEO and co-founder, Ginkgo Bioworks, in a company press release. "It's very meaningful when our team can drive impactful and technically innovative work like this, especially when we're working shoulder-to-shoulder with counterparts like the team at Merck.”

The two companies will now move on to the second stage of the partnership, which involves focusing on the continued improvement of the biologics production process.

“As we go into the next phase of this project, we'll continue to deploy the strain engineering, high-throughput screening, and process development capabilities as well as the assets and know-how that make Ginkgo a unique and powerful partner to top pharmaceutical companies," Kelly said in the release.

The August 2023 partnership deal is the second collaboration between Ginkgo and Merck. In October 2022, the companies entered into a biocatalysis project to improve Merck's API manufacturing (2). Under the biocatalysis deal, Ginkgo earned an upfront research and development fee and was eligible for success-based research and development milestone payments. Ginkgo was also eligible to earn commercial milestone payments for each of a specified number of biocatalysis targets. These targets have the potential to total, in the aggregate, up to $144 million, according to a company press release issued at that time.

"At Merck we are always seeking new and innovative ways to optimize process efficiency while maintaining product integrity," said Michael Kress, PhD, senior vice-president, development sciences and clinical supply, Merck Research Laboratories in an Aug. 7, 2023 press release (1). "We are pleased to build upon our relationship with the Ginkgo Bioworks team."

References

1. Ginkgo Bioworks. Ginkgo Bioworks Announces Collaboration with Merck to Improve Biologic Manufacturing. Press Release. Aug. 7, 2023.
2. Ginkgo Bioworks. Ginkgo Bioworks Announces Collaboration with Merck to Improve Active Pharmaceutical Ingredient Manufacturing. Press Release. Oct. 11, 2022.

Source: Ginkgo Bioworks