Connect with us

Tech

Is Ginkgo’s synthetic-biology story worth $15 billion?

Published

on

photograph of the founders of Ginkgo Bioworks


“Times must be good when a young biotech company can afford to hire people to write unrelated magazine-style articles,” snarked Dirk Haussecker, a savvy biotech stock picker who is active on Twitter.

Kelly says the magazine was inspired by Think, a periodical printed by IBM starting in the 1930s. “Why did they do that? Well, no one knew what the heck a computer was,” says Kelly, who sees Ginkgo playing a similar role as an evangelist for the possibilities of genetic engineering.

During a podcast, journalists with Stat News compared Ginkgo to a “meme stock,” or “stonk,” positioned to appeal to an investing public chasing trends without regard for business fundamentals. When the SPAC deal is finalized—sometime in September—the company is going to trade under the stock symbol “DNA,” once owned by Genentech, an early hero of the biotech scene. “Ginkgo Bioworks does not deserve to use the DNA ticker,” said Stat stock reporter Adam Feuerstein.

SPACs are a Wall Street trend that offers an IPO path with a little less than the usual scrutiny of a company’s financial outlook. Will Gornall, a business school professor at the University of British Columbia, believes that they democratize investor access to hot sectors but can also overestimate companies’ value. Some deals, like the one that took Richard Branson’s space company Virgin Galactic Holdings public, have done well, but five electric-car companies that went public via SPACs were subsequently pummeled with what Bloomberg called “brutal” corrections.

Gornall can see a bettor’s logic to the Ginkgo gamble. In recent years stock market profits have been driven by just a handful of tech companies, including Amazon, Apple, Facebook, Google, and Microsoft—each now worth more than a trillion dollars. “The valuation could make sense if there is even a 1% chance that biology is the computer of the future and this is the company that achieves that,” says Gornall.

Other people’s products

Since it was founded, Ginkgo has spent nearly half a billion dollars, much of it building labs equipped with robots, gene sequencers and sophisticated lab instruments such as mass spectrometers. These “foundries” allow it to test genes added to microorganisms (often yeast) or other cells. It claims it can create 50,000 different genetically modified cells in a single day. A typical aim of a foundry project is to assess which of hundreds of versions of a given gene is particularly good at, say, turning sugar into a specific chemical. Kelly says customers can use Ginkgo’s services instead of building their own lab.

What’s missing from Ginkgo’s story is any blockbuster products resulting from its research service. “If you are labeling yourself ‘synbio,’ that is setting the bar high for success—you are saying you are going to the moon,” says Koeris. “You’ve raised so much money against a fantastic vision that soon you need to have a transformative product, whether a drug or some crazy industrial product.”

To date, Ginkgo’s engineering of yeast cells has led to commercial production of three fragrance molecules, Kelly says. Robert Weinstein, president and CEO of the US arm of the flavor and additives maker Robertet, confirmed that his company now ferments two such molecules using yeast engineered by Kelly’s company. One, gamma-decalactone, has a strong peach scent. The other, massoia lactone, is a clear liquid normally isolated from the bark of a tropical tree; used as flavoring, it can sell online for $1,200 a kilogram. Running a fermenter year-round could generate a few million dollars’ worth of such a specialty chemical.

Organism engineers: The five founders of Ginkgo Bioworks met at MIT. From the left: Reshma Shetty, Barry Canton, Jason Kelly, Austin Che, Tom Knight.

GINGKO BIOWORKS

To George Church, a professor at Harvard Medical School, such products don’t yet live up to the promise that synthetic biology will widely transform manufacturing. “I think flavors and fragrances is very far from the vision that biology can make anything,” says Church. Kelly also sometimes struggles to reconcile the “disruptive” potential he sees for synthetic biology with what Ginkgo has achieved. Church drew my attention to a May report in the Boston Globe about Ginkgo’s merger with Soaring Eagle. In it, Kelly said his firm was an attractive investment because the world was becoming familiar with the extraordinary potential of synthetic biology, citing the covid-19 vaccines made from messenger RNA and the animal-free proteins in new plant burgers, like those from Impossible Foods.

“The article was a list of achievements, but the most interesting achievements were from others,” says Church. “It doesn’t seem to add up to $15 billion to me.” Still, Church says he hopes that Ginkgo does succeed. Not only is the company his “favorite unicorn,” but it acquired the remains of some of his own synthetic-bio startups after they went bust (he also recently sold a company to Zymergen). How Ginkgo performs in the future “could help our whole field or hurt our whole field,” he says.

While Ginkgo’s work has not led to any blockbusters, and Kelly allows it’s “frustrating” that biotech takes so long, he says products from other customers are coming soon. The Cannabis company Cronos, based in Canada, says by the end of the year it will be selling intoxicating pineapple-flavored candy containing CBG, a molecular component of the marijuana flower; Ginkgo helped show it how to make the compound in yeast. A spinout from Ginkgo, called Motif FoodWorks, says it expects to have a synthetically produced meat flavor available this year as well.



Tech

The hunter-gatherer groups at the heart of a microbiome gold rush

Published

on

The hunter-gatherer groups at the heart of a microbiome gold rush


The first step to finding out is to catalogue what microbes we might have lost. To get as close to ancient microbiomes as possible, microbiologists have begun studying multiple Indigenous groups. Two have received the most attention: the Yanomami of the Amazon rainforest and the Hadza, in northern Tanzania. 

Researchers have made some startling discoveries already. A study by Sonnenburg and his colleagues, published in July, found that the gut microbiomes of the Hadza appear to include bugs that aren’t seen elsewhere—around 20% of the microbe genomes identified had not been recorded in a global catalogue of over 200,000 such genomes. The researchers found 8.4 million protein families in the guts of the 167 Hadza people they studied. Over half of them had not previously been identified in the human gut.

Plenty of other studies published in the last decade or so have helped build a picture of how the diets and lifestyles of hunter-gatherer societies influence the microbiome, and scientists have speculated on what this means for those living in more industrialized societies. But these revelations have come at a price.

A changing way of life

The Hadza people hunt wild animals and forage for fruit and honey. “We still live the ancient way of life, with arrows and old knives,” says Mangola, who works with the Olanakwe Community Fund to support education and economic projects for the Hadza. Hunters seek out food in the bush, which might include baboons, vervet monkeys, guinea fowl, kudu, porcupines, or dik-dik. Gatherers collect fruits, vegetables, and honey.

Mangola, who has met with multiple scientists over the years and participated in many research projects, has witnessed firsthand the impact of such research on his community. Much of it has been positive. But not all researchers act thoughtfully and ethically, he says, and some have exploited or harmed the community.

One enduring problem, says Mangola, is that scientists have tended to come and study the Hadza without properly explaining their research or their results. They arrive from Europe or the US, accompanied by guides, and collect feces, blood, hair, and other biological samples. Often, the people giving up these samples don’t know what they will be used for, says Mangola. Scientists get their results and publish them without returning to share them. “You tell the world [what you’ve discovered]—why can’t you come back to Tanzania to tell the Hadza?” asks Mangola. “It would bring meaning and excitement to the community,” he says.

Some scientists have talked about the Hadza as if they were living fossils, says Alyssa Crittenden, a nutritional anthropologist and biologist at the University of Nevada in Las Vegas, who has been studying and working with the Hadza for the last two decades.

The Hadza have been described as being “locked in time,” she adds, but characterizations like that don’t reflect reality. She has made many trips to Tanzania and seen for herself how life has changed. Tourists flock to the region. Roads have been built. Charities have helped the Hadza secure land rights. Mangola went abroad for his education: he has a law degree and a master’s from the Indigenous Peoples Law and Policy program at the University of Arizona.

Continue Reading

Tech

The Download: a microbiome gold rush, and Eric Schmidt’s election misinformation plan

Published

on

The Download: a microbiome gold rush, and Eric Schmidt’s election misinformation plan


Over the last couple of decades, scientists have come to realize just how important the microbes that crawl all over us are to our health. But some believe our microbiomes are in crisis—casualties of an increasingly sanitized way of life. Disturbances in the collections of microbes we host have been associated with a whole host of diseases, ranging from arthritis to Alzheimer’s.

Some might not be completely gone, though. Scientists believe many might still be hiding inside the intestines of people who don’t live in the polluted, processed environment that most of the rest of us share. They’ve been studying the feces of people like the Yanomami, an Indigenous group in the Amazon, who appear to still have some of the microbes that other people have lost. 

But there is a major catch: we don’t know whether those in hunter-gatherer societies really do have “healthier” microbiomes—and if they do, whether the benefits could be shared with others. At the same time, members of the communities being studied are concerned about the risk of what’s called biopiracy—taking natural resources from poorer countries for the benefit of wealthier ones. Read the full story.

—Jessica Hamzelou

Eric Schmidt has a 6-point plan for fighting election misinformation

—by Eric Schmidt, formerly the CEO of Google, and current cofounder of philanthropic initiative Schmidt Futures

The coming year will be one of seismic political shifts. Over 4 billion people will head to the polls in countries including the United States, Taiwan, India, and Indonesia, making 2024 the biggest election year in history.

Continue Reading

Tech

Navigating a shifting customer-engagement landscape with generative AI

Published

on

Navigating a shifting customer-engagement landscape with generative AI


A strategic imperative

Generative AI’s ability to harness customer data in a highly sophisticated manner means enterprises are accelerating plans to invest in and leverage the technology’s capabilities. In a study titled “The Future of Enterprise Data & AI,” Corinium Intelligence and WNS Triange surveyed 100 global C-suite leaders and decision-makers specializing in AI, analytics, and data. Seventy-six percent of the respondents said that their organizations are already using or planning to use generative AI.

According to McKinsey, while generative AI will affect most business functions, “four of them will likely account for 75% of the total annual value it can deliver.” Among these are marketing and sales and customer operations. Yet, despite the technology’s benefits, many leaders are unsure about the right approach to take and mindful of the risks associated with large investments.

Mapping out a generative AI pathway

One of the first challenges organizations need to overcome is senior leadership alignment. “You need the necessary strategy; you need the ability to have the necessary buy-in of people,” says Ayer. “You need to make sure that you’ve got the right use case and business case for each one of them.” In other words, a clearly defined roadmap and precise business objectives are as crucial as understanding whether a process is amenable to the use of generative AI.

The implementation of a generative AI strategy can take time. According to Ayer, business leaders should maintain a realistic perspective on the duration required for formulating a strategy, conduct necessary training across various teams and functions, and identify the areas of value addition. And for any generative AI deployment to work seamlessly, the right data ecosystems must be in place.

Ayer cites WNS Triange’s collaboration with an insurer to create a claims process by leveraging generative AI. Thanks to the new technology, the insurer can immediately assess the severity of a vehicle’s damage from an accident and make a claims recommendation based on the unstructured data provided by the client. “Because this can be immediately assessed by a surveyor and they can reach a recommendation quickly, this instantly improves the insurer’s ability to satisfy their policyholders and reduce the claims processing time,” Ayer explains.

All that, however, would not be possible without data on past claims history, repair costs, transaction data, and other necessary data sets to extract clear value from generative AI analysis. “Be very clear about data sufficiency. Don’t jump into a program where eventually you realize you don’t have the necessary data,” Ayer says.

The benefits of third-party experience

Enterprises are increasingly aware that they must embrace generative AI, but knowing where to begin is another thing. “You start off wanting to make sure you don’t repeat mistakes other people have made,” says Ayer. An external provider can help organizations avoid those mistakes and leverage best practices and frameworks for testing and defining explainability and benchmarks for return on investment (ROI).

Using pre-built solutions by external partners can expedite time to market and increase a generative AI program’s value. These solutions can harness pre-built industry-specific generative AI platforms to accelerate deployment. “Generative AI programs can be extremely complicated,” Ayer points out. “There are a lot of infrastructure requirements, touch points with customers, and internal regulations. Organizations will also have to consider using pre-built solutions to accelerate speed to value. Third-party service providers bring the expertise of having an integrated approach to all these elements.”

Continue Reading

Copyright © 2021 Seminole Press.