{ "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": 188, "pageCount": 236, "prevPage": 187, "nextPage": 189, "slideType": "quote_slide", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A format to frame the expert's critique of Twist's competitive position.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/188", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-188", "components": [ { "bbox": null, "kind": "callout", "text": "He explained that one of Twist’s fundamental competitive weaknesses in NGS was its inability to make primers, which are “a huge portion of the [NGS] market,” which means “they are lacking in the ability to grow” – “everyone makes a kit that’s just as good as the other...it’s not a huge difference...if I were to run all kits side-by-side, you wouldn’t see much difference.”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0933-75bb-9bf3-9942cd41ae6c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "paragraph", "text": "He stated that Twist’s NGS trajectory isn’t sustainable, that they lack the ability to play in the largest part of the NGS market, and that everything Twist offers within NGS is a “commodity.” He explained that one of Twist’s fundamental competitive weaknesses in NGS was its inability to make primers, which are “a huge portion of the [NGS] market,” which means “they are lacking in the ability to grow” – “everyone makes a kit that’s just as good as the other...it’s not a huge difference...if I were to run all kits side-by-side, you wouldn’t see much difference.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8325577b-9714-48a7-928c-455c615344e0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.35 }, "kind": "paragraph", "text": "Twist’s trajectory in NGS is unsustainable; lack ability to play in the largest part of the NGS market; essentially everything Twist offers is “commodity”; every player’s NGS “as good as the other”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "85beffde-6671-4bf7-9b55-5ee295aa38a7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.9, "x": 0.05, "y": 0.45 }, "kind": "quote", "text": "Q: “Do you think that their NGS business or their trajectory is sustainable?”\nA: “I don’t think it is. I think they need to specialize more in library prep to compete with players who dominate that market like Roche, NEB, and even now IDT, and to making primers...where I think they are lacking in the ability to grow is they can’t make primers. That’s a huge portion of the market. That’s one of the reasons why they said they were investing in enzymatic DNA synthesis. If they can pull that off, yeah, they would have the ability to make primers and enter that market but one that is a very saturated space, and it’s very transactional.”\nQ: “Is their NGS offering basically a commodity?”\nA: “I would say everything that they offer, with the exception of their probes, are a commodity.”\nQ: “Would you say the same thing about IDT and others? Or are you saying they actually have unique technology?”\nA: “I would say the probes are also a commodity. IDT acquired a specialized library prep company that made library prep chemistry that is unique to the market and applications, so a kind of niche player in that. Library prep, yes, is a commodity across the board. Everyone makes a kit that’s just as good as the other. It’s not a huge difference between the two. If I were to run all kits side-by-side, you wouldn’t see much difference. Before there were bigger competitors in library prep, Roche and NEB dominated the market as they still do today.” –Former employee now at a key competitor", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8edf08cb-f583-4499-a5e8-afdd51c235e3", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“I don’t think it is. I think they need to specialize more in library prep to compete with players who dominate that market like Roche, NEB, and even now IDT, and to making primers...where I think they are lacking in the ability to grow is they can’t make primers. That’s a huge portion of the market.” — Former employee now at a key competitor", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0933-75bb-9bf3-9ed6087d615d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "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": "5a717a65-10af-489e-991f-ce81a14ecccd", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }