{ "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": 61, "pageCount": 236, "prevPage": 60, "nextPage": 62, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 4, "notes": "The slide uses a 'villain' narrative, framing Twist's growth as destructive to the industry ecosystem.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/61", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-61", "components": [ { "bbox": { "h": 0.06, "w": 0.85, "x": 0.08, "y": 0.42 }, "kind": "callout", "text": "Twist launched with a price dumping strategy at least 50% lower than the competition, forcing an industry price war and putting “a squeeze” on other vendors", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8f6726e9-50e1-4203-8c26-8e8898a39916", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.85, "x": 0.08, "y": 0.08 }, "kind": "paragraph", "text": "The immediate effect of Twist’s pricing strategy was to ignite a price war in a commodity industry already operating at rock-bottom prices, not only devastating Twist’s P&L and cash flow but allegedly forcing at least one competitor - Gen9 – out of business. A former employee stated that key competitors IDT and Genscript – both larger than Twist – had to “drop their prices in response” and that the move “really put a squeeze” on other vendors. A customer confirmed that Twist lowered pricing in the industry, stating that “everyone” was “conditioned” by their actions.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a1866a64-9270-4574-a445-a4e3c5485912", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.85, "x": 0.08, "y": 0.49 }, "kind": "quote", "text": "When Twist entered the market when I joined, they were targeting about 10 cents a base pair. Competitors at IDT and GenScript were at about 20 cents per base pair. What I've seen is that it has actually driven GenScript and IDT to drop their prices in response. Especially for larger customers, folks like GenScript and IDT are able to apply bulk discounts. But you can tell that it's really put a squeeze on some of those other vendors who are struggling to offer that price point and still make a profit. I know it's definitely hard for those other vendors to make a profit at those price points.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "97303f34-4c44-46b6-ae5d-3b77a44cbb44", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.85, "x": 0.08, "y": 0.68 }, "kind": "quote", "text": "Twist started a race to the bottom in pricing; competitors were “conditioned” by Twist’s pricing. Q: “My understanding is that when Twist started growing, they cut price dramatically, and other people had to cut their price. Did Twist lower the pricing in the industry?” A: “Yeah. These mid-sized, smaller ones, yes, probably everyone was a little bit conditioned by Twist.” Q: “What did GenScript and IDT price at before Twist came on the scene?” A: “Back then, if Twist was 20, it was maybe 30 or 25 [per base pair].”", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b338abb2-f64a-4f13-a0c2-21ed108e8799", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“When Twist entered the market when I joined, they were targeting about 10 cents a base pair. Competitors at IDT and GenScript were at about 20 cents per base pair. What I've seen is that it has actually driven GenScript and IDT to drop their prices in response.” — Former Twist manager in a manufacturing role, previously and currently employed by key competitors", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0932-77cf-bfe8-f518b94a0e6a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.08, "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": "f3d92b48-b473-4fe4-86fc-879e494e5fe8", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "71b742d6-b290-417d-ba1e-6180a99df001", "evidence": "Uses expert testimony to allege predatory pricing and financial instability.", "confidence": 0.85 } ], "arcBeats": [ { "to": 70, "from": 55, "beatId": "f840f37b-dc3b-4f69-a41b-48aecbb588b4", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Presentation of the thesis", "beatSlug": null, "evidence": "Clear articulation of the case against Twist", "position": 3, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }