{ "docId": "019dd923-622c-750b-8b9a-1a3bea94baf9", "docSlug": "c358888161f0", "documentTitle": "Ginkgo Bioworks (DNA)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-10-06 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 126, "pageCount": 175, "prevPage": 125, "nextPage": 127, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 2, "notes": "The slide uses a Q&A transcript format to expose potential governance and pricing issues.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-1a3bea94baf9/126", "deckHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9#slide-126", "components": [ { "bbox": null, "kind": "callout", "text": "The employee indicated that comparable vendors charge 40% of what Ginkgo does – which mathematically means that Ginkgo was overcharging them by 2.5 times.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2b62-723f-b68f-bbd2359ba8c3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.26 }, "kind": "paragraph", "text": "Joyn Bio employee attempted to act as a fiduciary on behalf of the related-party and pushed back on overcharging by Ginkgo, but was advised to play along; indicated Ginkgo overcharged by 2.5X", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f7f62ae9-ef93-4814-b3f9-bcef6ad1a7e2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.9, "x": 0.05, "y": 0.32 }, "kind": "quote", "text": "A: \"I ran into that the minute I started here where as a fiduciary of Joyn, I said, \"Okay, I want to do this as cost-effectively as possible,\" and when I saw how much Ginkgo was charging, I went out and found another vendor who charges about 40% of what Ginkgo wants to charge us. And boy, did they pitch a fit. [Laughs] We were able to use another vendor, and we were advised to try to maintain a good relationship with them and so to buy some services from them where it made sense. And so, we’ve been kind of walking that line.\"\nQ: \"And who was instructing you, out of curiosity—was it the board or management—they're telling you to play ball basically?\"\nA: \"Yeah, this is was management with the message coming directly from the board.\"\nQ: \"And they just said play ball?\"\nA: \"Yup.\"\nQ: \"It sounds to me like they were basically overcharging Joyn.\"\nA: \"Yeah, for a while, they had a variable pricing model, too, where they were basically charging us for all the capacity, even if we weren't using all of it. [Laughs] So, like the price went up depending on how full the lab was.\"\nQ: \"It sounds like this was not a standard pricing arrangement. In an arms-length relationship, this is not the kind of contract that a customer would ever sign up for.\"\nA: \"Right, the standard in the industry is they have a flat fee per unit of volume or per container that you rent from them or a fixed rate based on labor, for example, to do a certain number of things or to work for a certain number of hours. And so, you say, I want this many labor hours and this many containers, and it's a flat rate as long as nothing goes wrong.\" – Senior employee at Joyn Bio", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ba325b9d-72cc-4c25-9dc6-b4dc624830db", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"I ran into that the minute I started here where as a fiduciary of Joyn, I said, 'Okay, I want to do this as cost-effectively as possible,' and when I saw how much Ginkgo was charging, I went out and found another vendor who charges about 40% of what Ginkgo wants to charge us.\" — Senior employee at Joyn Bio", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-2b62-723f-b68f-bfa268a86a5d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.05, "y": 0.96 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3631e736-e96e-42c2-a7ad-4a1411572c89", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "The Joyn Bio employee described an attempt to act as a fiduciary on behalf of the entity and pushed back on overcharging by Ginkgo, but was advised to play along. The employee indicated that comparable vendors charge 40% of what Ginkgo does – which mathematically means that Ginkgo was overcharging them by 2.5 times.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ccf750ee-e164-4e00-88ad-77d98903500f", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 175, "from": 9, "beatId": "ffe290af-3a4f-4e06-8d60-dfbfc07d2e08", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "The deck presents evidence contradicting Ginkgo's claims and highlighting potential wrongdoings.", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }