Ginkgo Bioworks Holdings (NYSE: DNA ), which develops platforms for cell programming, has multiple, positive potential catalysts and a rather low valuation. Moreover, the shares should benefit from investors’ recent interest in buying small-cap stocks that have lost a great deal of their value. Given that analysts also expect Ginkgo’s top line to rebound sharply in 2025, I believe that risk-tolerant growth investors who are looking for a biotech play can consider buying a small amount of DNA stock at this point.
Potential, Positive Catalysts Ginkgo’s Ginkgo Canopy program “detects the presence and migration of biological risks, providing early warning and deep insights.” Many companies are undertaking a type of gene therapy called CRISPR/Cas9 gene editing. However, CRISPR can cause DNA to be rerranged, triggering cancer.
The Ginkgo Canopy program may be able to warn scientists that DNA has been rearranged in cells whose genes have been edited. Meanwhile, on April 10, Ginkgo and Novo Nordisk (NYSE: NVO ) disclosed they had expanded their strategic partnership. Under the five-year deal, the firms will seek “to improve the manufacturing of Novo Nordisk’s medicines for serious chronic diseases, including diabetes and obesity medications, collaborate on several early pipeline projects,” and develop new technologies.
Given Novo Nordisk’s huge size (the firm generated revenue of over $34 billion last year) and the tremendous success of its weight-loss drug, Ozempic.
