{ "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": 179, "pageCount": 236, "prevPage": 178, "nextPage": 180, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A format to highlight negative sentiment from a key customer.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/179", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-179", "components": [ { "bbox": null, "kind": "callout", "text": "Twist is not a big vendor, and they cannot offer many different things. They have their market, which is laboratories in universities and smaller startups....", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0932-77cf-bff3-a39ceba216ed", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.38 }, "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”; Novartis plans to reduce spending with Twist", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8bf58184-744a-4c27-a341-08fe3a9dfc69", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.9, "x": 0.05, "y": 0.45 }, "kind": "quote", "text": "A: “What I’m trying to say is how many times you need these small oligos, 90 to 100 at once. In a year, maybe five times because this only help you create these libraries to perform an experiment and afterward, you need to focus on the results of the experiment, but you’re not constantly doing this experiment.”\nQ: “So, you’re saying the vast majority of oligos that people need are much longer oligos?”\nA: “Exactly.\nQ: “You’re saying these guys have a niche in very early-stage research with a very short oligos product.\nA: “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.”\nQ: “Why is that?”\nA: “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.”\nQ: “Do you plan to spend less or more with them or about the same per year?”\nA: “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.” - Novartis, a large Twist customer, scientist in a leadership role", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eab7b79b-5131-4f6c-a058-19802ced9e5e", "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 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-bff3-a6b3af77111a", "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": "74aa87f9-b8ab-40d8-be89-d52f46066866", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "Novartis stated that Twist’s product limitations make it relevant only for smaller customers like academic labs and startups, and that they lack the capability and value proposition for pharma players – which is why Novartis plans to reduce its spend with Twist in favor of larger vendors that are “dominating more and more of the market”: “Twist is not a big vendor, and they cannot offer many different things. They have their market, which is laboratories in universities and smaller startups....”", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "771cc2e2-a750-4253-9e7d-f33068102d80", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }