{ "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": 168, "pageCount": 236, "prevPage": 167, "nextPage": 169, "slideType": "preempt_rebuttal", "function": "preempt_rebuttal", "density": "dense", "nDataPoints": 0, "notes": "The slide uses highlighted text to emphasize key arguments regarding Twist's perceived lack of technical innovation and reliance on unsustainable pricing.", "elementsJson": [ "paragraph", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/168", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-168", "components": [ { "bbox": null, "kind": "callout", "text": "IDT’s reaction was—and I think still is—just patience. IDT lowered prices a little bit in key markets like Boston and the Bay area, but IDT actively avoided going head-to-head with customers that we knew Twist was offering insane prices because we figured that either Twist is going to run out of venture capital steam and pitter out.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0932-77cf-bff2-4ccfe18442b4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.8 }, "kind": "paragraph", "text": "Twist hasn’t invented “a better mousetrap” that enables them “to bring down prices”; “didn’t compute” “Looking at our own margins, not that we were so arrogant to think somebody couldn’t possibly invent a better mousetrap to bring down prices, but as far as we could tell, Twist hadn’t invented a better mousetrap. Anyone that had deep technical knowledge in the space was kind of like, how are you doing that? It didn’t compute.” –IDT ex-regional sales manager, left recently", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1bf5fd29-b123-4a89-9f7c-8d992ebe5354", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.9, "x": 0.05, "y": 0.45 }, "kind": "paragraph", "text": "Key competitor sees through Twist’s strategy and is waiting out; thinks Twist will either blow up or only capture the worst customers with “insane prices,” given they’re “not as reliable,” “lower quality,” and slow “Without going into a lot of details, the reaction from IDT was like, okay, let’s see how this plays out. The folks at IDT, there are a lot of very smart people that know everything there is to know about DNA synthesis. We had a pretty darned good guess that they were either making very little money or maybe even losing money. So, IDT’s reaction was—and I think still is—just patience. IDT lowered prices a little bit in key markets like Boston and the Bay area, but IDT actively avoided going head-to-head with customers that we knew Twist was offering insane prices for because we figured that either Twist is going to run out of venture capital steam and pitter out, and we’re going to preserve our price premium, which is in the long run is going to be good. Or Twist, because they’re not as reliable, they don’t have as great of a turnaround time, they’re a lower quality provider, they might eat at our customer base, at least the high price sensitivity customer base, and that’s going to suck. And that’s eventually what happened…IDT still commands a price premium.” –IDT ex-regional sales manager, left recently", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6aa85c73-9230-4423-9290-68b6ed4e1f7c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "paragraph", "text": "Danaher’s IDT division, Twist’s key competitor, indicated that Twist was only able to take some of its worst, most price-sensitive customers – “we knew Twist was offering insane prices” – and that they simply let Twist have them without going head to head, and that the more attractive customers remained with IDT as Twist is slow, “not as reliable, and “a lower quality provider.” He noted massive skepticism within IDT, stating that they are patiently waiting out Twist until they blow up – “As far as we could tell, Twist hadn’t invented a better mousetrap…anyone that had deep technical knowledge …was kind of like, how are you [bringing down prices]? It didn’t compute.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c8161305-7ebc-40c8-a300-d1e9bc386173", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“As far as we could tell, Twist hadn’t invented a better mousetrap...anyone that had deep technical knowledge ...was kind of like, how are you [bringing down prices]? It didn’t compute.” — IDT ex-regional sales manager", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0932-77cf-bff2-51e564ec5093", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "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": "ee854856-ac5b-4849-89d3-f370c0ec879f", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }