Ginkgo Bioworks downgraded to Neutral from Buy at BTIG

BTIG downgraded Ginkgo Bioworks to Neutral from Buy without a price target. The company reported a Q3 miss on cell programs, and lowered its cell program guide for 2023, the analyst tells investors in a research note. The firm says there are macro factors in play here, like challenging capital markets for various earlier-stage biopharma companies, which is likely to be a headwind for Ginkgo into 2024. It also has concerns about the company’s fairly recent transition to a “success-based” pricing model. While it’s only 20% of its programs now, Ginkgo may look to expand that to other parts of its business, which may push revenue opportunities further out, contends BTIG.