Zymergen

From Wikipedia, the free encyclopedia
Zymergen Inc.
TypePublic
Nasdaq: ZY
IndustryBiotechnology
Founded2013; 9 years ago (2013)
FoundersJed Dean, Josh Hoffman, Zach Serber
Headquarters
Emeryville, California
Key people
Jay Flatley (Chairman & Acting CEO)[1][2]
Steven Chu (Boardmember)[3][4]
Websitewww.zymergen.com

Zymergen is an American biotechnology company based in Emeryville, California. The company applies genomics and machine learning to research and design chemical producing genetically modified organisms. Shortly after going public in 2021, it was reported that the company was facing difficulties in manufacturing products and struggling to make revenue.

History[]

Zymergen was founded in 2013.[5] The company uses machine learning and artificial intelligence to study and modify microbes which produce chemicals. Many of the chemical compounds produced by these organisms are used in manufacturing consumer goods or pharmaceuticals.[6]

The company raised $2 million in 2013, $44 million in 2015,[7] $130 million from SoftBank's Vision Fund in 2016,[8] $400 million in 2018,[9][10] and $300 million in 2020.[11] The company reportedly included DARPA and Fortune 500 companies among its customers by 2016.[12] In 2018, Zymergen acquired fellow biotechnology firm Radiant Genomics.[13]

The company released its first product, Hyaline, in December 2020.[14] Hyaline, a bio-manufactured optical polymer film, was marketed for use with consumer electronics such as flexible smartphones and tablets.[15]

In April 2021, the company went public with a $500 million IPO. The IPO was led by JPMorgan Chase and Goldman Sachs.[14]

Regulatory filings with the U.S. Securities and Exchange Commission in July revealed that the company had made only $13 million in revenue during 2020, and had lost over $262 million.[16] The filings also revealed that the company was struggling to produce Hyaline, and that two of its companies had complained did not mesh with their manufacturing process. When these operational problems became public it resulted in a sharp reduction in market capitalization and shareholder lawsuits were filed shortly after.[2]

Co-founder Josh Hoffman's resignation as CEO in August 2021 caused Zymergen's stock to plunge.[17] He was replaced by acting CEO Jay Flatley, who is also currently Zymergen's chairman and Illumina, Inc.'s former CEO.[1]

After Zymergen's stock prices crashed, investor Cathie Wood began buying up its shares, which raised prices again.[18]

In the wake of these financial issues, the company began restructuring to cut costs, including renegotiating loans, laying off hundreds of employees,[19] and restructuring lease expenses for office space. Company founder Jed Dean also departed from the company.[20]

In November 2021, Zymergen announced that it had abandoned the production of Hyaline, and would be focusing on drug and vaccine development.[21]

The company's highly publicized difficulties in bringing its projected products to market and has drawn comparisons to other biotechnology companies such as Amyris and Theranos.[22]

See also[]

References[]

  1. ^ a b Levy, Ari (2021-08-04). "Synthetic biology company Zymergen plunges 68% after saying product revenue will be 'immaterial' in 2022, removing CEO". CNBC. Archived from the original on 2021-08-04.
  2. ^ a b Feldman, Amy; Au-Yeung, Angel (2021-10-13). "The Inside Story Of How SoftBank-Backed Zymergen Imploded Four Months After Its $3 Billion IPO". Forbes. Archived from the original on 2021-10-13.
  3. ^ "Board of Directors". Zymergen.
  4. ^ "ソフトバンク、米バイオVBに投資". 日本経済新聞 (in Japanese). 2016-10-12. Archived from the original on 2016-10-17.
  5. ^ Buhr, Sarah (2015-06-16). "With $44 Million In Funding, Biotech Startup Zymergen Is Buying Up Robots To Mass Produce Materials From Microbes". TechCrunch. Archived from the original on 2015-06-16.
  6. ^ "A new breed of scientist, with brains of silicon". www.science.org. Retrieved 2022-01-11.
  7. ^ Terry, Mark (2015-12-02). "What You Need to Know About Zymergen". BioSpace. Archived from the original on 2019-05-01.
  8. ^ Buhr, Sarah (2016-10-10). "Biotech startup Zymergen nabs $130 million from Softbank". TechCrunch. Archived from the original on 2016-10-11.
  9. ^ "How Bio Startup Zymergen Plans to Spend $400M". www.bloomberg.com. December 14, 2018. Retrieved 2022-01-11.{{cite web}}: CS1 maint: url-status (link)
  10. ^ Loizos, Connie (2018-12-13). "Zymergen lands $400 million more, led by SoftBank Vision Fund, for its genetically altered microbes". TechCrunch. Archived from the original on 2018-12-13.
  11. ^ Schieber, Jonathan (2020-09-09). "Zymergen raised $300 million because synthetic biology is so hot right now". TechCrunch. Archived from the original on 2020-09-09.
  12. ^ Konrad, Alex (2016-10-11). "Why SoftBank Just Led A $130 Million Mega Round Into Zymergen's Microbe-Creating Robots". Forbes. Archived from the original on 2016-10-12.
  13. ^ "Zymergen Acquires Radiant Genomics". Genomeweb. 2018-01-08. Archived from the original on 2019-05-14.
  14. ^ a b Hytha, Michael (April 22, 2021). "'Biofacturing' Firm Zymergen Raises $500 Million in Expanded IPO". www.bloomberg.com. Retrieved 2022-01-10.{{cite web}}: CS1 maint: url-status (link)
  15. ^ Feldman, Amy. "In An Earth Day Test For Synthetic Biology Field, Zymergen Raises $500 Million In IPO". Forbes. Retrieved 2022-01-10.
  16. ^ Renauer, Cory (2021-04-27). "This Is Why Zymergen's IPO Was a Huge Success". The Motley Fool. Retrieved 2022-01-10.
  17. ^ Beltran, Luisa. "Shares of Synthetic Biology Hopeful Zymergen Plunge as CEO Departs". www.barrons.com. Retrieved 2022-01-10.
  18. ^ Flanagan, Cristin (August 5, 2021). "Zymergen Can Thank Cathie Wood for Its Head-Spinning Rebound". www.bloomberg.com. Retrieved 2022-01-10.{{cite web}}: CS1 maint: url-status (link)
  19. ^ "Synthetic biology company Zymergen to cut 120 jobs after 1st product falters". www.bizjournals.com. Retrieved 2022-01-10.{{cite web}}: CS1 maint: url-status (link)
  20. ^ "Troubled Zymergen renegotiates loan, cuts 100 more jobs and loses co-founder". www.bizjournals.com. Retrieved 2022-01-10.{{cite web}}: CS1 maint: url-status (link)
  21. ^ "Zymergen ditches products, targets agriculture, vaccines, drugs as cost-cutting continues". www.bizjournals.com. Retrieved 2022-01-10.{{cite web}}: CS1 maint: url-status (link)
  22. ^ Leuty, Ron (September 30, 2021). "The rise and fall of Zymergen: Can biotech veteran Jay Flatley save the company?". www.bizjournals.com. Retrieved 2022-01-10.{{cite web}}: CS1 maint: url-status (link)

External links[]

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