This Small-Cap Stock Announced a Deal With Eli Lilly. Then Its Shares Doubled
Eli Lilly is partnering with Ginkgo Bioworks on drug discovery.
Overview
Eli Lilly (NYSE:LLY) is a top healthcare company, and it has a ton of money it can afford to invest in emerging opportunities. Artificial intelligence (AI) is one of the biggest ones right now, as using AI to accelerate drug discovery could do wonders for its business.
The company has launched Lilly TuneLab, which uses AI and machine learning to potentially speed up drug discovery efforts. Last month, Lilly reached a deal with biotech stock Ginkgo Bioworks (NYSE:DNA), which programs cells. Ginkgo has billions of data points that Lilly can leverage, and these can be made available quickly with the help of AI.
Details
The excitement around this development appears to have created a tremendous amount of bullishness around Ginkgo's stock, which has now doubled in value since that announcement came out on Sept. 15. Its market cap is around $1 billion. Is it too late to buy shares of Ginkgo, or could there still be more gains ahead for investors who invest in the business today?
Source
Originally published at www.fool.com.