{ "docId": "019dd923-622c-750b-8b9a-101b5bfde4b8", "docSlug": "a70fecd99534", "documentTitle": "Berkeley Lights (BLI)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-09-15 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 40, "pageCount": 158, "prevPage": 39, "nextPage": 41, "slideType": "executive_summary", "function": "expose_contradiction", "density": "dense", "nDataPoints": 2, "notes": "The slide uses bold text to emphasize critical negative sentiment from interviewees.", "elementsJson": [ "headline_text", "paragraph", "bullet_list", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-101b5bfde4b8/40", "deckHref": "/decks/019dd923-622c-750b-8b9a-101b5bfde4b8", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-101b5bfde4b8.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-101b5bfde4b8#slide-40", "components": [ { "bbox": null, "kind": "callout", "text": "GINGKO BIOWORKS announced a purported “$150MM deal” with BLI in 2019. We spoked with two Gingko executives, both of whom hesitated and expressed concerns when we asked if they’d ever personally invest in BLI", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2041-7259-a876-03fe5e57850a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.9, "x": 0.05, "y": 0.35 }, "kind": "list", "text": "Executive #1 said it’s too early to say whether the tool can compete against other screening technologies – a troubling statement given the deal was inked two years ago; not obvious what to use the instrument for and still trying to figure it out; executive doesn’t “want to be unnecessarily pessimistic” but was nonetheless highly circumspect about the partnership.\nStill just “a concept on paper” that hasn’t been operationalized; unclear if machine is built for the right set of applications; “hard to know” how it compares to other ways of screening; “just so early.”\nChallenged the machine’s purported value proposition: doesn’t speed up overall workflows for pharma/biotech customers; throughput is a limitation; instrument is difficult to use and not usable by typical pharma/biotech companies nor as appealing to regular Gingko staff either\nExecutive #2 stated they have 2 BLI FTE’s on site to operate the machines and that their experience is not applicable to typical biotech/pharma customers for antibody discovery or cell line development.\nStated that they have extensively hacked and re-engineered BLI’s machine to get it to work for certain purposes: re-designed BLI’s chips, optics, and other components; machine they’re using is not typical and has a different architecture.\nGingko hires from Amgen, Genentech indicated “consistency issues” with the instrument.\nDemurred on personally investing in BLI; wants to see “success”; space is crowded; other companies have “been smarter” in designing their machines; doesn’t see BLI “taking off” in the antibody discovery space.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "444e4e4f-adf1-445d-915b-ed85ccb52adf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.1 }, "kind": "paragraph", "text": "GINGKO BIOWORKS announced a purported “$150MM deal” with BLI in 2019. We spoke with two Gingko executives, both of whom hesitated and expressed concerns when we asked if they’d ever personally invest in BLI; both were surprisingly cautious about the collaboration and wouldn’t confirm if they actually paid for their 3 machines; “jury is still out” 24 months later, still just “a concept on paper”; challenged the tool’s value proposition and hesitated to recommend it; not usable by typical biotech/pharma companies; have had to hack the machine and develop new chips to make it usable; still 50/50 whether experiments work or fail; suggested the deal will never approach the headline “deal size.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6c4347e6-72cb-4c86-a3ba-df4b52a66dea", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“jury is still out” — Gingko Executive; “a concept on paper” — Gingko Executive; “hard to know” — Gingko Executive; “consistency issues” — Gingko Executive; “been smarter” — Gingko Executive", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-2041-7259-a876-06dff4dc795a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.05, "y": 0.95 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "83bdf59a-569e-438c-8ada-7915c12242f6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "2) Summary of findings from customer interviews", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8e1a725f-2bff-4ba8-a52d-65c0de28777f", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 75, "from": 17, "beatId": "dbc4e03f-819a-4342-92d6-d159c538f28f", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Exposure of Contradictions", "beatSlug": null, "evidence": "The document exposes contradictions in Berkeley Lights' claims and actions, highlighting the company's struggles and poor market traction.", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }