Ginkgo Bioworks , the leading horizontal platform for cell programming, announced plans to significantly expand its platform capabilities in agricultural biologicals, from discovery to field. These capabilities will be built through a series of transactions, in which Ginkgo will acquire Bayer’s 175,000-square-foot West Sacramento Biologics Research & Development site, team, and internal discovery and lead optimization platform as well as integrate the R&D platform assets from Joyn Bio, a joint-venture between Ginkgo and Leaps by Bayer formed in 2017. Bayer will be the anchor agricultural customer of Ginkgo’s expanded platform, entering into a significant new multi-year collaboration which will focus on the advancement of Joyn’s marquee nitrogen fixation program, as well as new programs in areas such as crop protection and carbon sequestration. While Ginkgo will continue to evaluate the operating expenditures required to launch and scale its expanded agricultural capabilities following these transactions, it is expected that the cash proceeds from this multi-year collaboration with Bayer may significantly offset such anticipated expenditures. The proposed transactions are projected to close before the end of 2022, pending the finalization of definitive agreements and subject to regulatory approvals.
Agricultural biologicals are a rapidly growing category of solutions that offer tremendous sustainability and performance benefits. Against the backdrop of rising fertilizer costs and novel pest and disease threats, growers are calling for new agriculture solutions that can increase yields while decreasing their environmental footprint. While chemical and plant trait solutions have long been the dominant solutions on the market, demand for biologicals has increased dramatically.
“Bayer, Ginkgo, and Joyn share a common vision, which is to enable biological products to be a critical part of the solution to the world’s greatest agricultural and environmental challenges,” said Jason Kelly, CEO and cofounder of Ginkgo Bioworks. “We are incredibly impressed by the success of the Joyn team and the deep expertise of Bayer’s West Sacramento R&D team, and are thrilled to have them join Ginkgo as we build deep end-to-end capabilities in ag biologicals on top of our large scale horizontal platform. We believe we’re bringing together the most innovative minds in agriculture with the experience of a team that has brought several effective biological products to market for Bayer – opening this platform up to the world has the potential to truly revolutionize the field.”
Bayer has long been committed to expanding its product offerings to benefit growers around the world. In recent years, the company has made a strategic decision to focus on becoming the preferred research, development and commercial partner in the biologicals segment, while leveraging an “open innovation” model to be able to partner broadly with disruptive discovery companies. Through this agreement, Bayer is committing to a significant multi-year collaboration, advancing multiple programs including a marquee nitrogen fixation program as well as a suite of other programs in areas such as next-generation crop protection and carbon sequestration.