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  "documentTitle": "Berkeley Lights (BLI)",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-09-15 00:00:00",
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  "notes": "The slide uses a series of pull-quotes to systematically dismantle the company's public narrative regarding their cell line development business.",
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      "text": "Ex-employees elaborated on the lack of further opportunity in cell line development: already ran out of customers; already killed off the segment despite what they promote to investors; was always \"a hard sell\" as couldn't show their tool is any better than current methods; no incentive or ROI for customers to use BLI for cell line development.",
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      "text": "Sometimes pharma's are just rich and they just buy them. And it's just done. Sometimes they're very skeptical and have a hard time figuring out if they can spend $2 million. It's a lot of money. It's very difficult to prove how you are better without running something that looks like a $200-million study...",
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      "text": "It was always on the radar that they were going to run out of customers for cell line development specifically. So, the general idea was let's try to expand the range of applications to capture more customers that are not necessarily doing cell line development that are doing immuno-oncology or antibody discovery.",
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      "text": "The status quo is to transfect the CHO cells...They have data, know it works, know the cost, have already bought the systems; it's sunk cost. And here comes this really expensive machine, and it's like, we can do things better. You go, that looks really cool, and I think that is true, but how can you prove it to me?",
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      "text": "I think cell line development is a hard sell because everybody's got their version of what they think is the best path, a little bit of witchcraft which biology has sometimes, In CLD, it is very difficult to make an unambiguous statement.",
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      "text": "They've kind of gotten rid of cell line development and they've stopped touting it...",
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      "text": "\"It was always on the radar that they were going to run out of customers for cell line development specifically. So, the general idea was let's try to expand the range of applications to capture more customers that are not necessarily doing cell line development or are doing immuno-oncology or antibody discovery.\" — Former BLI scientist; \"They've kind of gotten rid of cell line development and they've stopped touting it...\" — Former BLI employee; \"I think cell line development is a hard sell because everybody's got their version of what they think is the best path, a little bit of witchcraft which biology has sometimes, In CLD, it is very difficult to make an unambiguous statement. And that's because you're trying to say the counterfactual; if I would have run it on this other system, it would have been better. The only way to do that is to literally learn 300 independent campaigns on both types of systems and then measure the variability and the distributions of the cells.\" — Former BLI executive; \"The status quo is to transfect the CHO cells... They have data, know it works, know the cost, have already bought the systems; it's sunk cost. And here comes this really expensive machine, and it's like, we can do things better. You go, that looks really cool, and I think that is true, but how can you prove it to me? Maybe that was a fluke. How much money am I prepared to spend to figure out whether that's true?\" — Former BLI executive; \"Sometimes pharma's are just rich and they just buy them. And it's just done. Sometimes they're very skeptical and have a hard time figuring out if they can spend $2 million. It's a lot of money. It's very difficult to prove how you are better without running something like a $200-million study, and who the hell is going to run a $200-million study with the risk of it not looking good if your total market is $300 million and your pricing actually takes that market down to $80 million. The return's not there.\" — Former BLI executive",
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      "text": "Source: Scorpion Capital consultation calls with experts",
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      "text": "Ex-employees elaborated on the lack of further opportunity in cell line development: already ran out of customers; already killed off the segment despite what they promote to investors; was always “a hard sell” as couldn’t show their tool is any better than current methods; no incentive or ROI for customers to use BLI for cell line development.",
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      "text": "Part 2) Former BLI employees/executives: Sales are close to saturated",
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