{ "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": 197, "pageCount": 236, "prevPage": 196, "nextPage": 198, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 1, "notes": "Includes direct quotes from a former employee now at a key competitor to substantiate the claim of dependency on third-party manufacturing.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/197", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-197", "components": [ { "bbox": null, "kind": "callout", "text": "Twist has to resort to purchasing these components and merely being a reseller.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0933-75bb-9bf3-de0dbf4a8b65", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.62 }, "kind": "paragraph", "text": "Twist doesn’t make the NGS reagents/enzymes either – the other key component of their NGS niche. “When you purchase a workflow that’s targeted, you have to purchase basically three components... Number one is library prep... generally, that list price is right around $25 to $30 per sample... The third component you're purchasing is the reagents... They don't make the enzyme.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "61b82fc7-ea6f-4b26-825e-a05c99a7a411", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.23 }, "kind": "paragraph", "text": "In other words, two of the three components purchased in an NGS kit are prep kits and reagents, and Twist has to resort to purchasing these components and merely being a reseller.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b18faf62-e8d3-423e-a69f-b8f0b4d0ec5b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.45 }, "kind": "paragraph", "text": "Even within Twist’s niche in NGS, revenue is actually dependent on library prep, where Twist is a reseller. “It’s worth noting that most of the revenue associated with a hybrid capture workflow comes from library prep... They have to purchase it elsewhere and resell it, so their margins are less on that.” — Former employee now at a key competitor", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b6a9fa60-e398-4c31-ab35-4598833e096c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.33 }, "kind": "quote", "text": "A former employee stated that of Twist’s NGS hybrid capture TAM of only a “few hundred million,” “most of that market, the number that I specified, most of that is library prep...they have purchase it elsewhere and resell it.”", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "af613cd8-57ff-4e37-aab7-0bf41c3522c2", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "It’s worth noting that most of the revenue associated with a hybrid capture workflow comes from library prep. It doesn’t actually come from hybrid capture. Those are the two components in that workflow. So, most of that market, the number that I specified, most of that is library preop. And another two players are added there: Illumina, who makes the machines, and NEG, and IDT just acquired a company that specializes in this. It’s well-known that they don’t manufacture their library prep kit. They have to purchase it elsewhere and resell it, so their margins are less on that. — Former employee now at a key competitor", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0933-75bb-9bf3-e1ddfe847db5", "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": "d4370581-db16-4ce2-b269-7d8f37cd78eb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "To make matters even worse for Twist, it’s already trivial TAM within its corner of the NGS market is further limited by its inability to make key components of the NGS workflow", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "43268e35-2ef3-4007-931f-dc12267e71b8", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "a0e218ef-7eff-4050-8ead-898c3ee3707b", "evidence": "Uses expert testimony to expose a discrepancy between company value proposition and operational reality.", "confidence": 0.85 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }