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  "documentTitle": "Twist Bioscience (TWST)",
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  "authorName": "Scorpion Capital",
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  "notes": "The slide uses a Q&A transcript format to build credibility for the claim that Twist's business model is fundamentally flawed.",
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      "text": "Gen9 is the canary in the coal mine for Twist investors, as it was an identical manufacturing business using the same Agilent “chip” as Twist.",
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      "text": "gross margin: -30%",
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      "text": "Gen9 is the canary in the coal mine for Twist investors, as it was an identical manufacturing business using the same Agilent “chip” as Twist. An ex-Agilent executive involved with their failed investment in Gen9 stated it was running a negative 30% gross margin as “the cost of goods are pretty horrendous” – the gross margins “were pretty shitty…yeah, they were negative for sure.” Similar to Twist’s rampant problems with errors and quality control, he explained the driver was high waste and negligible yields: “...the waste at the manufacturing plant exceeded 60%. They only had like a 30% yield. My guys were there almost every week trying to figure out how to improve the manufacturing process.”",
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      "text": "Massively negative gross margin due to manufacturing problems: “pretty shitty, “cost of goods are horrendous” A: “So, if they’re selling whole genes, that’s a really expensive process. I can’t put a price on it without telling you what the Gen9 P&L looked like The below-the-line cost and the cost of goods are pretty horrendous.” Q: “Was Gen9 running a negative gross margin at that point?” A: “They were negative gross margin, yeah.” Q: “How negative was the gross margin? One almost never comes across a negative gross margin business.” A: “It was because the waste at the manufacturing plant exceeded 60%. They only had like a 30% yield. My guys were there almost every week trying to figure out how to improve the manufacturing process.” Q: “Do you remember roughly what the gross margin was there at Gen9? Like, are we talking double-digit negative or triple-digit negative? A: “They were pretty shitty. Yeah, they were negative for sure. I’m trying to figure out the percentage in my head here. They were like 30% negative on revenue.” -Longtime oligonucleotide manufacturing expert and executive; ex-Agilent",
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      "text": "Source: Scorpion Capital consultation calls with experts",
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