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  "docSlug": "5fadb686cc03",
  "documentTitle": "Twist Bioscience (TWST)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Scorpion Capital",
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  "presentationDate": "2022-11-15 00:00:00",
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  "notes": "The slide uses a financial table to highlight the discrepancy between R&D spending and revenue compared to COGS.",
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      "text": "Twist’s historical and recently exploding R&D costs make no sense and strain credibility for a commodity DNA manufacturing company and glorified CRO.",
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      "text": "R&D as % of revenue: 60%",
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      "text": "We begin with the first mechanism – R&D expenses. Twist's historical and recently exploding R&D costs make no sense and strain credibility for a commodity DNA manufacturing company and glorified CRO. Twist reported R&D expenses of $110MM in the last 12 months - a staggering 60% of revenue. We find it inconceivable that LTM R&D is actually equivalent to COGS – also 60% of revenue. We note that Twist is not a drug development company; has no clinical pipeline or R&D programs like a traditional biotech; runs no clinical trials; and has no real product pipeline beyond tinkering with a legacy micro-array it calls a “chip.” Even the “Research and development” section of its 10K admits that its R&D activities are manufacturing-related, such as “process development,” “optimization,” and “process and chemistry development.”",
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      "text": "Source: Capital IQ data;",
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      "text": "Financial table showing Revenue, COGS, Gross Profit, SG&A, R&D, Operating costs, Operating Income, and percentages from 2016 to LTM 6/30.",
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