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  "documentTitle": "Twist Bioscience (TWST)",
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  "authorName": "Scorpion Capital",
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  "presentationDate": "2022-11-15 00:00:00",
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  "notes": "The slide uses a Q&A format to highlight negative expert sentiment regarding the company's financial health.",
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      "text": "I don’t even think they’re getting a positive margin on the product if you exclude R&D and G&A. That’s my personal opinion from looking at their financials.",
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      "text": "gross margin",
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      "text": "Executive skeptical they have a positive gross margin; “shocked” after visiting their manufacturing operations and seeing “what they were doing”\nA: “They’ve taken the approach, and they’ve had the investor base to focus on revenue growth, not operational efficiency and profitability. So, even though they sunk a lot of money into operations, they sunk much more into R&D and continue to sink more into R&D. So, even if they could get operationally profitable, which they’re not—you still have to pay for the remainder of the company, which they can’t. That ends up being your huge loss right there. I don’t even think they’re getting a positive margin on the product if you exclude R&D and G&A. That’s my personal opinion from looking at their financials.”\nQ: “So, you’re saying you don’t even think they’re profitable in terms of gross margin?”\nA: “I think that if they are, I’d be surprised.”\nQ: “So, you think they’re running a negative gross profit business?”\nA: “On the genes, definitely. The oligo pools may be a slightly different cost structure because you don’t need to do cloning and things like that. But, yeah, I would find it hard to believe. When I went out there and saw what they were doing, I was shocked.”\nQ: “What were you shocked by?”\nA: “In my world, you focus on building things inexpensively but with the highest quality. They’re focusing on trying to turn it around as fast as they can. So, get everything you can done in a short period of time and hope that you’re going to get the quality at the back end. That’s just one example.” –Ex-senior executive of key competitor and longtime expert in Twist’s space",
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      "text": "“When I went out there and saw what they were doing, I was shocked.” — Ex-senior executive of key competitor and longtime expert in Twist’s space",
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      "text": "Source: Scorpion Capital consultation calls with experts",
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      "text": "An ex-executive of a key competitor who remains friendly with the management team and has advised the CEO stated he was “shocked” after visiting their manufacturing operations: “When I went out there and saw what they were doing, I was shocked.” He indicated that he would “be surprised” if they had a positive gross margin, and replied “definitely” when we asked if they were running a negative gross profit business.",
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