Merck Is Driving Ginkgo Bioworks Stock Higher Monday: What's Going On?

Ginkgo Bioworks Holdings Inc DNA shares are trading higher Monday after the company announced a collaboration with Merck & Company Inc MRK focused on improving biologic manufacturing.

What To Know: Ginkgo Bioworks said it plans to use its capabilities in cell engineering, multiplexed screening, protein characterization and process optimization to improve production efficiency and increase yields. 

Under the terms of the collaboration, Ginkgo is eligible to receive up to $490 million to be paid in a variety of ways including upfront research fees, option license payments and milestone payments.

"It's exciting for our team to drive impactful and technically innovative work, and to do so shoulder-to-shoulder with our counterparts at Merck," said Jason Kelly, co-founder and CEO of Ginkgo Bioworks.

The agreement marks the second collaboration between the two companies. 

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DNA Price Action: Ginkgo shares were up 7.35% at $2.19 at the time of publication, according to Benzinga Pro.

Photo: Victoria_Regen from Pixabay.