{ "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": 70, "pageCount": 236, "prevPage": 69, "nextPage": 71, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 6, "notes": "Uses expert quotes to highlight the discrepancy between Twist's pricing and the actual cost of manufacturing.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/70", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-70", "components": [ { "bbox": null, "kind": "callout", "text": "Twist has a minimum order size that’s a fraction of the competition’s yet its pricing doesn’t reflect the radically higher cost of the customization and lack of standardization in its orders", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0932-77cf-bfe9-91f2043f383b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.35 }, "kind": "paragraph", "text": "Twist sells hard-to-manufacture customized panels with absurdly small and uneconomic minimum order sizes", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1887c9db-a55d-4017-8680-74c50e644d36", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.58 }, "kind": "paragraph", "text": "Twist's losses driven by the expense of customizing orders, in a crowded market and inherently low margins", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ec2eede7-b4b5-405c-a63f-eab16fd30738", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.75 }, "kind": "paragraph", "text": "Twist has a minimum order size that's a fraction of the competition's yet its pricing doesn't reflect the radically higher cost of the customization and lack of standardization in its orders", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fbc5e364-b80a-42c3-b5a5-fe604854e1dd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.8 }, "kind": "quote", "text": "The minimum order from Agilent at $20,000 might do you 1,000 samples or 10,000 samples of the same sequence. The price per panel might be the same. The price per sample, but you need to buy a bigger pack. It's like going to the supermarket and buying a pack of 1,000 eggs. Twist will sell you six eggs; Agilent will sell you 1000 eggs. Per sample, yes.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5e77db4a-77bf-4c2b-ad7d-6a1e485e6ec7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.4 }, "kind": "quote", "text": "One of the big benefits of Twist is the lower entry point if you've got a custom panel. You can get a custom panel from Twist for around $2,000. With the likes of Agilent, the minimum is something like $10,000 to $20,000... IDT, their minimum level of synthesis is like 1,000 times higher, and you will pay $10 per oligo, whereas, with Twist, you're getting millions of oligos for $1,000. Each oligo costs way less.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "81013ade-ac8e-45c9-866f-533db4d5b935", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.63 }, "kind": "quote", "text": "Customization is sort of an inherent aspect of the DNA synthesis industry... there is no DNA manufacturer out there that is the equivalent of a Model T manufacturer; they're all custom. To your question about why are they so unprofitable? DNA synthesis is extremely low margins, and the reason is there are so many competitors out there.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8951eb85-33f4-4d02-8ecf-7424cc31223f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“One of the big benefits of Twist is the lower entry point if you’ve got a custom panel. You can get a custom panel from Twist for around $2,000. With the likes of Agilent, the minimum is something like $10,000 to $20,000... IDT, their minimum level of synthesis is like 1,000 times higher, and you will pay $10 per oligo, whereas, with Twist, you’re getting millions of oligos for $1,000. Each oligo costs way less.” — Major Twist customer, one of largest genomics centers in Europe; “Customization is sort of an inherent aspect of the DNA synthesis industry... To your question about why are they so unprofitable? DNA synthesis is extremely low margins, and the reason is there are so many competitors out there.” — Former Twist manager in a manufacturing role; “It’s like going to the supermarket and buying a pack of 1,000 eggs. Twist will sell you six eggs; Agilent will sell you 1000 eggs.” — Major Twist customer, one of largest genomics centers in Europe", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0932-77cf-bfe9-97d08475cae9", "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": "9505d734-0177-44ec-a05d-46f2b2656842", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "Twist discounts in two other ways that add to the destruction of its P&L", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e8efe48a-977b-4dfd-a781-c8cb979fdfc0", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "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 }