Economics
Cronos Partners With Ginkgo to Develop Lab-Grown Cannabis
- $122 million deal will genetically engineer cannabinoids
- Approach is ‘going to wipe the floor with farming economics’
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Why grow marijuana when you can create its most potent molecules in a lab?
Cannabis producer Cronos Group Inc. is partnering with Ginkgo Bioworks Inc. in a $122 million deal to genetically engineer the active compounds in marijuana. Ginkgo, which counts Bayer AG, Archer-Daniels-Midland Co. and Cargill Inc. among its partners, will work with Cronos to identify rare cannabinoids that appear in tiny quantities in the plant, extract the DNA and produce them in a lab. Cronos shares gained as much as 16 percent Tuesday in early trading on the Toronto Stock Exchange.