{ "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": 165, "pageCount": 236, "prevPage": 164, "nextPage": 166, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A format to validate the thesis that Twist is losing market share due to quality/consistency issues.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/165", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-165", "components": [ { "bbox": null, "kind": "callout", "text": "Twist’s chip requires an amplification step to compensate for its inability to meaningful amounts of DNA, which “impedes their ability to make a “consistent product” from lot to lot – “they need consistency, they need fewer lot numbers.”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0932-77cf-bff1-9d0fd4051c2b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.41 }, "kind": "paragraph", "text": "IDT initially lost customers to Twist but now having “substantial success at winning” them back, due to Twist’s quality/consistency problems and its inability to make sufficient lot sizes", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6bf26089-1ad1-49ba-90dd-bb0ea2d0f181", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.9, "x": 0.05, "y": 0.47 }, "kind": "paragraph", "text": "Q: “How much share did you guys lose to them, and what kind of customers? It sounds like it was the price-sensitive, less quality-sensitive customers. What was the impact on IDT’s business at the time?”\nA: “Actually, early on, it was substantial, especially for NGS. They made a really big splash, and I think that their low prices compelled a heck of a lot of even tightly regulated clinical labs to switch over to them. But, of course, you don’t necessarily recognize low consistency in the short term. You recognize that after multiple years. At least at the time that I left IDT, the team was having a substantial amount of success at winning back the customers that they had lost several years before.”\nQ: “And what those customers say?”\nA: “That they need consistency. They need fewer lot numbers. They need data that is going to be as close to perfectly replicated patient after patient after patient. And because of the need for Twist to both amplify their panels and potentially introduce mutations and the inability to make very large lot sizes, that impedes their ability to make a consistent product. To put it in perspective, a company like an IDT could make one lot to last a clinic one to two years. Whereas Twist could make one lot to last them a matter of weeks. There are massive cost savings from the intake quality control standpoint. The quality control team of the clinics doesn’t have to be running experiments all the time.”\nQ: “And you’re referring to NGS here?”\nA: “Yes, I’m referring to NGS here, yes.” –IDT ex-regional sales manager, left recently", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b98b0d6c-e427-4e58-b858-80e8da59f969", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Actually, early on, it was substantial, especially for NGS. They made a really big splash, and I think that their low prices compelled a heck of a lot of even tightly regulated clinical labs to switch over to them. But, of course, you don’t necessarily recognize low consistency in the short term. You recognize that after multiple years. At least at the time that I left IDT, the team was having a substantial amount of success at winning back the customers that they had lost several years before.” — IDT ex-regional sales manager, left recently", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0932-77cf-bff1-a37be5a86e2a", "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": "6a4d111c-3769-402b-a6d0-df4be33e650a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "Twist’s inability to make large NGS lot sizes is driving customers back to competitors, who stated that while they lost customers initially due to Twist’s aggressive discounting, they are “having a substantial amount of success at winning back the customers that they had lost several years before.” Twist’s chip requires an amplification step to compensate for its inability to meaningful amounts of DNA, which “impedes their ability to make a “consistent product” from lot to lot – “they need consistency, they need fewer lot numbers.”", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "96128e8c-d9de-4d43-ae6f-27dfabf0c566", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "expose_contradiction", "slug": null, "matchId": "a08c6c2f-91b9-4144-8eee-2e2af10d9ad3", "evidence": "The slide contrasts Twist's initial market success (low price) with long-term failure (consistency/lot size issues) using expert testimony.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }