Ginkgo Bioworks is playing to investors hunting for the next Amazon. But 2 experts say the biotech is overvalued and overambitious.
in revenue last year, and it expects to make $150 million this year, financial reports said. So Ginkgo's valuation is predicated on its business growing — a lot. The 13-year-old company projects it will increase its R&D revenue by 1,600% over the next four years to $1.1 billion, while also substantially expanding other potential sources of revenue.
"We are long-term focused, and investing in Ginkgo is a bet that we can become the industry standard for cell programming across biotech, from pharmaceuticals to foods. If that works out, the valuation will be just fine," he said. , which now has a stock-market value of $1.6 trillion. What a company such as Ginkgo does is help other companies find and design specific microbes. Ginkgo explains it as the biological equivalent of computer coding.
"We work with big companies that have big R&D budgets," Kelly said."So we can grow a lot within our existing customer base."The issue isn't Ginkgo's business model — investors actually like the diversity. The main point of contention is Ginkgo's forecasts.
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