Selecta Biosciences, Inc. and Ginkgo Bioworks announced a collaboration to develop safer and more effective next-generation gene therapy viral capsids. This partnership leverages the unique platforms of both companies as they seek to develop next-generation viral capsids with improved transduction, enhanced tissue tropism and reduced immunogenicity. Ginkgo plans to design and engineer the capsids and Selecta will conduct all pre-clinical and clinical studies thereafter.

Under the terms of the collaboration, Ginkgo is eligible to earn upfront research and development fees and milestone payments, including certain milestone payments in the form of Selecta common stock. In addition, Ginkgo is eligible to earn clinical, regulatory and commercial milestone payments of up to $200 million in cash for each of a specified number of products, which have the potential to total, in the aggregate, up to $1.1 billion. Ginkgo is also entitled to potential further downstream value in the form of royalties on sales.