Courtesy of Zymergen
Zymergen is the first biofacturing company to go public, but its CEO expects it won’t be the last.
Zymergen (ticker: ZY) shares rose 21.45% from its offer price on its first day of trading Thursday and raised $500 million with its IPO. The company will use the proceeds to invest in its product pipeline, as well as sales and marketing, CEO and Co-founder Josh Hoffman told Barron’s. “I am generally ecstatic. We have a great set of investors. To be able to [go public] on Earth day is icing on the sundae.”
Biofacturing, which is distinct from biomanufacturing, refers to the use of biological processes to make chemicals. With biofacturing, Zymergen uses biology as a design inspiration, as a manufacturing paradigm, to make stuff “faster, cheaper and more sustainable,” Hoffman said.
Zymergen’s technology seeks to displace the petrochemicals used to make everything from plastics to clothes to cars that are polluting the planet, according to its prospectus. The company’s technology finds the right biomolecule to make products that are better for the environment and perform better but cost the same as petrochemicals.
“We are able to tap into billions of years of evolution to make products [companies] haven’t dreamed up,” Hoffman added.
Its first product, Hyaline, is an optical film that can be used in display-touch sensors for personal devices and other applications. that is currently in the qualification process with customers. Zymergen competes against other makers of optical films including DuPont (DD),
and
These rivals have considerable legacy assets and are constrained by the petrochemical supply chains they use to make products, Hoffman said. “We come unburdened by any legacy [assets]. This gives us the freedom to build better products,” Hoffman said.
The company has 10 other products in its pipeline, including electronic films and insect repellent products. It plans to introduce one product next year and two in 2023, he said. “These are all better than petrochemical based products,” he said.
Zymergen was founded eight years ago. Since that time, the theme of developing products that are better for the environment has gained momentum, Hoffman said. “We have seen a huge change in the regulatory environment that is being applied to products and the seriousness of large organizations making changes to their product mix. Consumers are also putting real pressure on the very largest organizations in the world,” he said.
He expects other biofacturing companies to come to market. “[This] is great because the planet needs it,” he said.
Write to editors@barrons.com
