{ "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": 96, "pageCount": 236, "prevPage": 95, "nextPage": 97, "slideType": "quote_slide", "function": "diagnose_problem", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a quote from an industry executive to validate the thesis of operational failure.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-4b91788fc785/96", "deckHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-4b91788fc785#slide-96", "components": [ { "bbox": null, "kind": "callout", "text": "Manufacturing error rates and pitiful yields are the key to understanding Twist’s extreme losses and why it is doomed, forcing a dysfunctional, trial-and-error process where it has make multiple, duplicative orders to get one right.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0932-77cf-bfeb-1d6685d725c3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.48 }, "kind": "paragraph", "text": "Error rates are a key driver of Twist’s losses; requires a trial-and-error process of making multiple, duplicative orders to compensate as well as “very expensive” and “complicated error correction” techniques", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "88713e97-83e6-4f72-862b-d0e1c050d819", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.9, "x": 0.05, "y": 0.25 }, "kind": "quote", "text": "A longtime industry executive who is friendly with and has advised Twist’s management summarized the problem: “their problem is still error rates...and that’s why they’re losing money”; “a situation where you need to make multiples of everything just to be able to deliver”; “very high error rates that require that either they create duplicates or multiples of each order, which makes it non-economic, or they have to apply complicated error correction...that also is very expensive.”", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "688f11b9-d3f3-4138-93ea-e121be8fbfd5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.9, "x": 0.05, "y": 0.57 }, "kind": "quote", "text": "My guess would be that their problem is still error rates. And because of that, they need to do multiples of every order, and that’s why they’re losing money. That would be my theory. Error rate is the biggest problem for going from short DNA sequence to long DNA sequence. Everybody assumes that the cost of DNA has gone down, which it has, just like sequencing DNA went down significantly enabled this and just like the computational power cost has gone down. This has been the synthetic biology revolution—these three elements of cost driving that are all really the lowest ever. However, because the error rate is still high, you have a situation where you need to make multiples of everything just to be able to deliver. I think that that’s where they’re still getting stuck...if you ask me what their challenge is today, I would imagine that it would have to do with the fact that they have very high error rates that either require that they create duplicates or multiples of each order, which makes it non-economic, or they have to apply complicated error correction either doing CRISPR, and that would be by hand and having people work on each one, and that also is very expensive.” –Longtime industry executive who has advised Twist’s management", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "90ca49ef-703d-4a8c-be82-648749f3983b", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“their problem is still error rates...and that’s why they’re losing money”; “a situation where you need to make multiples of everything just to be able to deliver”; “very high error rates that require that either they create duplicates or multiples of each order, which makes it non-economic, or they have to apply complicated error correction...that also is very expensive.” — Longtime industry executive who has advised Twist’s management", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0932-77cf-bfeb-20bc08d695f2", "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": "9d5b9ad4-4be9-4299-89ce-e8fe078a57e6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "Manufacturing error rates and pitiful yields are the key to understanding Twist’s extreme losses and why it is doomed, forcing a dysfunctional, trial-and-error process where it has make multiple, duplicative orders to get one right.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6bdc8237-afce-4635-abc1-0ba913b41124", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [ { "to": 100, "from": 90, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "ba084e17-8baa-48c4-95ae-b7f2113f8ae2", "evidence": "Analysis of Twist's financial struggles and industry implications", "position": 1, "objective": "Highlight the consequences of Twist's actions", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }