{ "docId": "019dd923-622c-750b-8b9a-4b91788fc785", "docSlug": "5fadb686cc03", "documentTitle": "Twist Bioscience (TWST)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2022-11-15 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 156, "pageCount": 236, "prevPage": 155, "nextPage": 157, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 2, "notes": "The slide uses a Q&A format and direct quotes to build a case against the subject company's operational quality.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/156", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-156", "components": [ { "bbox": null, "kind": "callout", "text": "Lead times due to quality issues, forcing rework and multiple builds, resulting in “losing money on every order”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0932-77cf-bff1-478ef8591970", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.9, "x": 0.05, "y": 0.52 }, "kind": "list", "text": "Lead times due to quality issues, forcing rework and multiple builds, resulting in “losing money on every order”\n“That’s another issue, that it takes them very long these days. So, I think we’re starting to see that they understand they have to deliver, but if it’s taking them that long and they’re not getting it right, so they’re making multiple builds, that’s where you find that they’re losing money on every order. So, if they could push people more to pool their libraries, they probably have a better chance, but they can’t charge as much for that.” —Founding member of Gen9, an identical company to Twist", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1d55d05a-c58b-469d-8937-caa784c82c5e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.9, "x": 0.05, "y": 0.75 }, "kind": "list", "text": "Longtime executive in the space says his companies avoid ordering from Twist, unless the order can make-do with lower quality and error rates of 20%\n“I can tell you, though, from my portfolio companies’ perspective, they will order from IDT without hesitation when they need something that IDT can make...The only thing that becomes competitive is really those pools or libraries, and that, again, goes to quality control. So, if they can give them a reliable quality—which, let’s say, is an 80% correction, so they have a 20% error rate. In a pool, you could probably manage that. It’s okay. In a library, you can get away with that. When you need the one gene you’re ordering to work; you can’t. —Founding member of Gen9, an identical company to Twist", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "47a59431-8630-413e-9e43-61e50f151890", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.25 }, "kind": "list", "text": "Twist needs about month even for a “very simple, shorter gene”; currently “slower than usual”\nQ: “And how long does it take Twist to do a more complex gene?”\nA: “You probably are looking at four to five weeks. It varies quite a bit. More recently, they’ve had a lot of orders, and they were a little bit slower than usual.”\nQ: “And what are the lead times and delays right now?”\nA: “I would say you’d be safer if you add one or two weeks to the regular time.”\nQ: “So, what does that end up being total?”\nA: “Total for very simple, shorter gene, it’s going to be three to three-and-a-half weeks.” — Abbvie R&D Director", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4c5f05a7-888d-4362-90cb-a3a61404edcb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "paragraph", "text": "Abbvie, another large pharma company, confirmed Twist’s delays and lead time problems, indicating 4-5 week lead times and noting a recent deterioration. Another expert, a longtime executive and investor in the space, stated that “it takes them very long these days” due to manufacturing errors which force “multiple builds, that’s where you find they’re losing money on every order”; and that his portfolio companies avoid ordering from Twist given low quality and high error rates.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aa8f85ff-de7d-4325-a91d-81f417aeffce", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“it takes them very long these days” — Founding member of Gen9; “they’re making multiple builds, that’s where you find that they’re losing money on every order” — Founding member of Gen9; “they will order from IDT without hesitation when they need something that IDT can make” — Founding member of Gen9", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0932-77cf-bff1-49c29be6cfd9", "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": "9e70cce8-db47-43fa-a5a3-8861dc31e6e9", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }