Ginkgo CEO Jason Kelly (Photographer: Kyle Grillot/Bloomberg via Getty Images)

As Gink­go looks to clear its name, the feds have come sniff­ing around on the heels of short sell re­port

A month and a half af­ter a short sell at­tack near­ly brought Gink­go Bioworks’ new­ly pub­lic shares to its knees, the com­pa­ny on Mon­day took its largest step to date to­ward clear­ing its name. But it al­so re­vealed it’s cur­rent­ly the tar­get of a De­part­ment of Jus­tice probe.

Gink­go re­ceived an “in­for­mal in­quiry” from the DOJ con­nect­ed to the short sell re­port, re­leased last month by hedge fund Scor­pi­on Cap­i­tal, the com­pa­ny said dur­ing Mon­day’s third quar­ter earn­ings call. CEO Ja­son Kel­ly told an­a­lysts Gink­go is “co­op­er­at­ing” with reg­u­la­tors, sug­gest­ing the in­ves­ti­ga­tion re­mains on­go­ing.

“Short­ly af­ter the short sell­er re­port comes in, we re­ceived a pre­lim­i­nary in­quiry from the DOJ, in­for­mal,” Kel­ly said dur­ing the call, adding lat­er: “There’s not too much more I’d add at this point on it.”

The dis­clo­sure came in the same breath as Kel­ly say­ing its self-ap­point­ed in­de­pen­dent au­dit found all ac­cu­sa­tions of wrong­do­ing in the re­port to be “un­found­ed.” In a fol­low-up email ask­ing for com­ment, a Gingko spokesper­son re­ferred End­points News to Kel­ly’s re­marks and the earn­ings press re­lease.

Through spokesper­son Danielle Blevins, the De­part­ment of Jus­tice de­clined to com­ment.

“As a gen­er­al mat­ter, the De­part­ment does not con­firm, de­ny, or oth­er­wise com­ment on the ex­is­tence or non-ex­is­tence of in­ves­ti­ga­tions. We de­cline to com­ment fur­ther,” Blevins wrote to End­points in an email.

Though the probe is os­ten­si­bly con­nect­ed to the re­port, it’s not yet clear what in­for­ma­tion reg­u­la­tors sought from Gink­go or how broad the scope of the in­quiry is.

Back in Oc­to­ber, Scor­pi­on put out its re­port al­leg­ing Gingko was “a Franken­stein mash-up of the worst frauds of the last 20 years.” The hedge fund claimed there was a pat­tern of fraud at Gink­go, with the com­pa­ny fak­ing cus­tomer in­ter­est and over­hyp­ing a plat­form that’s seen a his­to­ry of fail­ure with­out any mean­ing­ful IP.

The re­port could not be con­firmed and short sell­ers — and the re­ports they put out — have a cer­tain rep­u­ta­tion about them. At the time, long­time stock com­men­ta­tor Cit­ron Re­search pushed back on the most se­ri­ous claims against Gink­go, say­ing the com­pa­ny us­es “roundtrip trans­ac­tions” to boost rev­enue re­ports but stopped short of call­ing it a “scam.”

But it’s sim­i­lar to what oc­curred af­ter Scor­pi­on re­leased a sep­a­rate re­port on Berke­ley Lights, send­ing that syn­bio play­er’s stock tank­ing as well. And Zymer­gen, the com­pa­ny Scor­pi­on re­ferred to as Gink­go’s “Siamese Twin,” blew up in spec­tac­u­lar fash­ion ear­li­er this year just months af­ter a mas­sive $500 mil­lion IPO.

Gink­go, too, is fac­ing the re­al­i­ties of be­ing a new­ly pub­lic com­pa­ny, hav­ing tak­en the SPAC route and re­verse merg­ing with Arie Bellde­grun’s blank-check com­pa­ny to raise a record $2.5 bil­lion. The deal set Gink­go’s mar­ket val­ue at $15 bil­lion, though the stock — trad­ing on Genen­tech’s old $DNA tick­er — hasn’t moved all that much since the merg­er closed in Sep­tem­ber.

Gink­go shares were down about 2.5% in ear­ly Mon­day trad­ing and are up about 27.5% since the SPAC process wrapped up.

This ar­ti­cle has been up­dat­ed to in­clude Gingko and the De­part­ment of Jus­tice’s re­spons­es to End­points’ re­quests for com­ment.

Sen. Ron Wyden (D-OR) (Francis Chung/E&E News/Politico via AP Images)

In­fla­tion re­bates in­com­ing: Wyden calls on CMS to move quick­ly as No­var­tis CEO pledges re­ver­sal

Senate Finance Chair Ron Wyden (D-OR) this week sent a letter to the head of the Centers for Medicare & Medicaid Services seeking an update on how and when new inflation-linked rebates will take effect for drugs that see major price spikes.

The newly signed Inflation Reduction Act requires manufacturers to pay a rebate to Medicare when they increase drug prices faster than the rate of inflation.

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Teresa Graham, incoming Roche Pharmaceuticals CEO

In­com­ing Roche CEO builds out his top team, tap­ping Genen­tech vet to lead phar­ma di­vi­sion

Roche announced another leadership shuffle Thursday morning – the head of global product strategy, Teresa Graham, will take over as CEO of Roche Pharmaceuticals in March while the company’s corporate executive committee will make a spot for Levi Garraway, CMO and executive VP of global product development.

Thomas Schinecker will take over the top spot as Roche group CEO in March, leaving his spot as head of diagnostics.

Te­va drops out of in­dus­try trade group PhRMA

Following in AbbVie’s footsteps, Teva confirmed on Friday that it’s dropping out of the industry trade group Pharmaceutical Research and Manufacturers of America (PhRMA).

Teva didn’t give a reason for its decision to leave, saying only in a statement to Endpoints News that it annually reviews “effectiveness and value of engagements, consultants and memberships to ensure our investments are properly seated.”

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Sanofi CFO Jean-Baptiste de Chatillon (L) and CEO Paul Hudson (Romuald Meigneux/Sipa via AP Images)

Sanofi sees downtick in flu sales as it preps for launch of RSV an­ti­body

Sanofi expects its RSV antibody jointly developed with AstraZeneca will be available next season, executive VP of vaccines Thomas Triomphe announced on the company’s quarterly call.

Beyfortus, also known as nirsevimab, was approved in the EU back in November and is currently under FDA review with an expected decision coming in the third quarter of this year. The news comes as the FDA plans to hold advisory committee meetings over the next couple months to review RSV vaccines from Pfizer and GSK.

Christophe Weber, Takeda CEO (Photographer: Shoko Takayasu/Bloomberg via Getty Images)

Take­da fo­cus­es on ‘di­verse’ pipeline prospects on heels of two ac­qui­si­tions

After a whopping $4 billion asset buy from Nimbus Therapeutics, along with a $400 million deal with Hutchmed for a colorectal cancer drug, Takeda executives touted pipeline optimism on its latest earnings call this week.

That’s because the TYK2 inhibitor for psoriasis Takeda is getting from Nimbus, along with the Hutchmed fruquintinib commercialization outside of China, are just two of what it reports are 10 late-stage development programs of promising candidates.

Regeneron CSO George Yancopoulos (L) and CEO Len Schleifer at a groundbreaking for its new Tarrytown, NY facility, June 2022 (Lev Radin/Pacific Press/LightRocket via Getty Images)

In show­down with Roche, Re­gen­eron gears up for po­ten­tial Eylea ex­pan­sion amid Covid de­cline

Regeneron faced a substantial slump in overall revenue last year, but the focus still remains on some of its biggest blockbusters.

The pharma with several high-profile partnerships — Sanofi and Bayer among them — said Friday that Q4 revenue was down 31% for the quarter, and down 24% for the entire year. However, that won’t stop blockbuster expansion plans.

One of those is Eylea, the Bayer-partnered eye disease drug that has been in major competition with Roche’s Vabysmo. While Eylea is currently only approved in a 2 mg dose, the company recently filed for approval to give a 8 mg dose, in hopes of making a longer-lasting treatment.

BeiGene's new website helps direct cancer patients and caregivers to a wide variety of sources for help.

BeiGene re­veals men­tal health and can­cer care gap in study, de­buts dig­i­tal re­sources

One-fourth of cancer patients are living with depression — and another 20% suffer from anxiety. That’s according to new study results from BeiGene, conducted by Cancer Support Community (CSC), about the mental and emotional health of cancer patients.

While the fact that people with cancer are also dealing with depression or anxiety may not be surprising, what is — and was to BeiGene — is that a majority of them aren’t getting support. 60% of respondents said they were not referred to a mental health professional, and even more concerning, two in five who specifically asked for mental health help did not get it. CSC, a nonprofit mental health in cancer advocacy group, surveyed more than 600 US cancer patients.

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One of the paintings from Gilead's latest campaign making AI art to help MBC patients be 'seen and heard.'

Gilead com­bines ar­ti­fi­cial in­tel­li­gence and art to draw at­ten­tion and hope to MBC

What if you could “see” the emotions and feelings of people living with metastatic breast cancer? That’s what Gilead Sciences’ agency VMLY&R Health did last year, using artificial intelligence and sound analytics to turn the interviews of three women living with metastatic triple-negative breast cancer into works of art.

Using the sound waves, a robotic painting device translated their stories of struggle and hope into colors, contours and brush strokes. The result? An art exhibition called “Paintings of Hope” that was first displayed at ESMO in September in Paris, but has since traveled to hospitals and medical conferences in Europe and Spain.

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Giovanni Caforio, Bristol Myers Squibb CEO (Nicolas Messyasz/Sipa via AP Images)

Bris­tol My­ers turns at­ten­tion to new prod­ucts in wake of Revlim­id patent loss

Bristol Myers Squibb CEO Giovanni Caforio is shifting his focus to newer products as generic sales continue to gnaw at the company’s blockbuster myeloma drug Revlimid.

Both Revlimid and Abraxane sales took a dive last year thanks to generic rivals, BMS reported in its Q4 and full-year results on Thursday. As a result, Q4 sales dipped 5% and full-year sales remained flat. However, Caforio sees a silver lining — or rather, two of them.

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