Investing — Stocks — Biotechnology

The Reasons Why You Should Consider Investing in Synthetic Biology

Photo by Sangharsh Lohakare on Unsplash

Cells and DNA in the Service of Mankind, a Disruptive Promise for Modern Industries

  1. Every cell has a code. You might know that we use “0” and “1” symbols to write a binary code readable by computers. Well, each living being (at least, according to our conception of life) has a four-letter code (A, C, T and G), called DNA, that we can write and read by DNA synthesis and sequencing, respectively.
  2. Each cell carries a complex molecular machine able to understand this code to transform it into molecules (proteins, messenger RNA, etc.). It’s a tried and tested system: the fact that you’re reading me now is proof of that.
Photo by National Cancer Institute on Unsplash
How does synthetic biology work, in a nutshell
Source: AOCS, Good Food Institute and AB

Synthetic biology applications are numerous, from chemistry to agriculture or computer science

Synthetic biology can help address key challenges facing the planet and its population. Research in synthetic biology may lead to new things such as programmed cells that self-assemble at the sites of disease to repair damage.

— Craig Venter, an American biotechnologist and businessman.

Binary code in DNA
Storing Wikipedia in DNA? Check.
  • It’s very dense: then, it can store a lot of information;
  • It’s highly resistant: it won’t be corrupted or damaged after a few decades. Just think about DNA in fossils!

A Market With Attractive, Albeit Hypothetical, Financial Projections

  • Sales of synthetic compounds (synthetic DNA, enzymes, etc.);
  • Sales of technological equipment (sequencers, synthesizers, etc.);
  • Services (synthesis on demand, outsourced R&D, maintenance, etc.).
Since 1990, DNA sequencing costs plunged. DNA synthesis currently follows the same path. Source: Dr. Robert Carlson, Bioeconomy Capital
Synbio TAM according to Twist Biosciences
According to various estimates compiled by Twist Biosciences, total addressable market (TAM) is about US$3 billion, mainly led by SynBio “Makers” who produce synthetic materials. This TAM represents all the revenue opportunities available for synthetic biology products and services. Source: Twist Biosciences.

Three Stock Ideas for Investing in Synthetic Biology

Amyris (NASDAQ: AMRS)

Amyris historical price graph, since the IPO.
Amyris revenue and net income since 2008
Amyris revenue and net income since 2008

Ginkgo Bioworks (NYSE: DNA)

Ginkgo Bioworks logo
  1. R&D: seeking to identify a molecule, process or strain with commercial value.
  2. Engineering: by reprogramming an organism to adapt it to the discoveries generated by step 1.
  3. Manufacturing: by optimizing and scaling up the modified organism in step 2.
A Ginkgo Bioworks employee working in a fume hood.
Ginkgo Bioworks historical price graph
Ginkgo Bioworks historical price graph
Ginkgo Bioworks revenue and net income since 2020
Ginkgo Bioworks revenue and net income since 2020. We’re still lacking in hindsight on the company’s financial performance.

Twist Biosciences (NASDAQ: TWST)

Twist Biosciences logo
Twist DNA plateform
Twist Biosciences mainly works to industrialize biological engineering and DNA synthesis. Source: Twist Biosciences presentation.
Twist Biosciences historical price graph

We’re Intel and Ginkgo is Microsoft

—Emily Leproust, CEO and Founder of Twist Bioscience.

Twist Biosciences revenue and net income since 2017
Twist Biosciences revenue and net income since 2017

Embrace the Future of Biotechnology

Copyright: Mark Weaver

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Blogger at investiforum.fr (investing for french investors)

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Raphaël from Investiforum.fr

Raphaël from Investiforum.fr

Blogger at investiforum.fr (investing for french investors)

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