{ "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": 162, "pageCount": 236, "prevPage": 161, "nextPage": 163, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses a Q&A transcript format to highlight negative sentiment from a major customer.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/162", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-162", "components": [ { "bbox": null, "kind": "callout", "text": "Twist’s chip can only make smaller oligos, which are a small niche; limited growth opportunity; larger vendors will continue to dominate; Twist may “go bankrupt” or “collapse” because of their pricing; Novartis will reduce spend", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0932-77cf-bff2-64a03b993c6e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.25 }, "kind": "paragraph", "text": "Twist’s chip can only make smaller oligos, which are a small niche; limited growth opportunity; larger vendors will continue to dominate; Twist may “go bankrupt” or “collapse” because of their pricing; Novartis will reduce spend", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0ad66255-c582-42cd-8324-6082d6a06653", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.45 }, "kind": "quote", "text": "A: “Exactly. For that product, yes. It’s a very dedicated niche...I don’t think the stock will suddenly in two years or in five years that everybody will buy from Twist.”", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6ed953ee-fb9d-442f-8b7a-cc09e6c8efff", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.75 }, "kind": "quote", "text": "A: “Probably every year, it will decrease because we will invest more into the Thermo’s and the Sigma’s because they will dominate more and more.”", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "77e62c38-f40c-4b67-b220-8917e471b3af", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.55 }, "kind": "quote", "text": "A: “Because I think the big ones are getting bigger and bigger and dominating more and more of the market, and big pharma is consolidating with a smaller number of vendors that have a better offering. And Twist is not a big vendor, and they cannot offer many different things. I think they have their market, which is laboratories in universities, smaller startups, and some part of pharma, but they will not suddenly grow like crazy...what could happen in the future is that they go bankrupt or they collapse because at some point, if they are selling everything at a lower price, I don’t know how they are going to compensate for that.”", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d6419afb-c734-40bf-8367-cd7f687c1e6f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Because I think the big ones are getting bigger and bigger and dominating more and more of the market, and big pharma is consolidating with a smaller number of vendors that have a better offering. And Twist is not a big vendor, and they cannot offer many different things. I think they have their market, which is laboratories in universities, smaller startups, and some part of pharma, but they will not suddenly grow like crazy...what could happen in the future is that they go bankrupt or they collapse because at some point, if they are selling everything at a lower price, I don’t know how they are going to compensate for that.” — Novartis, a large Twist customer, scientist in a leadership role", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0932-77cf-bff2-6b803a0350cf", "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": "181c1167-b6fc-4d16-8b76-3203a6aad386", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "Novartis was dismissive of Twist’s future, stating that the market is limited for the small oligos they’re capable of – a “niche.” We found their blunt, bleak assessment to be striking: that customers are consolidating around larger vendors with “a better offering” that are “getting bigger and bigger and dominating more and more of the market”; that Twist may “go bankrupt or they collapse” with their insane pricing; and that Novartis will continue to decrease spend with Twist vs. larger vendors.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b27248fe-2c97-404c-8ac6-8c66efd056bd", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }