Twist Bioscience Corp (TWST)

Twist Bioscience Corp. Stock Overview

Company Profile:

History and Background: Twist Bioscience Corp. (TWST) was founded in 2013 by Dr. Emily Leproust and Dr. Bill Banyai. The company develops and manufactures synthetic DNA libraries for applications in research, diagnostics, and industrial biotechnology.

Core Business Areas:

• DNA Synthesis: TWST offers custom synthesis of DNA fragments with high accuracy and throughput.
• Gene Synthesis: The company provides gene synthesis for research, diagnostics, and bioindustrial applications.
• Next-Generation Sequencing (NGS): TWST offers NGS services for targeted re-sequencing, synthetic library screening, and de novo sequencing.
• Antibody Discovery and Engineering: TWST develops antibodies for research, diagnostics, and therapeutic applications.

Leadership Team and Corporate Structure:

• Emily M. Leproust, Ph.D.: President and Chief Executive Officer
• Patrick D. Finn, Ph.D.: Chief Science Officer and Head of Research and Development
• John R. West II: Chief Financial Officer
• James C. Datin: Chief Operating Officer and Head of Manufacturing

Top Products and Market Share:

Top Products: NGS, Synthetic library screening

Market Share:

• Global DNA synthesis market (2020): 3.8%
• US gene synthesis market (2020): 10.8%

Comparison to Competitors:

• Illumina (ILMN): Market leader in NGS with a 50% market share. TWST offers targeted resequencing and synthetic library screening, while ILMN focuses on de novo sequencing.
• Thermo Fisher Scientific (TMO): Provides a wide range of products for life science research, including PCR and qPCR instruments. TWST offers gene synthesis and NGS, while TMO focuses on instrumentation.
• Agilent Technologies (A): Competitor in DNA synthesis market and offers microarray-based NGS.

Total Addressable Market:

The global DNA synthesis market is estimated to be $5.4 billion in 2020 and is projected to grow at a CAGR of 13.3% during 2021-2025.

Financial Performance:

Revenue: TWST's revenue grew from $42.3 million in 2020 to $79.7 million in 2021. Net Income: The company reported a net loss of $25.7 million in 2020 and $23.5 million in 2021. Profit Margins: TWST's gross margin improved from 43.2% in 2020 to 53.0% in 2021. However, the company has yet to achieve profitability. Earnings per Share (EPS): TWST reported an EPS of ($3.96) in 2020 and ($3.94) in 2021. Cash Flow: The company generated $46.8 million in operating cash flow in 2021 compared to $17.0 million in 2020. Balance Sheet: TWST has $483.0 million in cash and short-term investments and $320.9 million in total debt as of December 31, 2021.

Dividends and Shareholder Returns:

• Dividend History: TWST does not currently pay a dividend.
• Shareholder Returns: The company's stock price has appreciated by over 400% in the past year.

Growth Trajectory:

Historical Growth: TWST has experienced rapid revenue growth in recent years. Revenue increased from $13.0 million in 2018 to $79.7 million in 2021. Future Growth Projections: The company expects revenue to reach $130-$140 million in 2022. Recent Product Launches and Strategic Initiatives: TWST recently introduced a new platform for DNA synthesis called 'Twist Direct' and acquired an additional 230,000 square feet of manufacturing space.

Market Dynamics:

The DNA synthesis market is growing due to increasing demand from pharmaceutical, academic, and industrial customers. Advancements in gene editing, synthetic biology, and personalized medicine are further driving this growth.

TWST is well-positioned in this dynamic market with its innovative products, including synthetic library screening. However, the company faces intense competition from established players like Illumina and Thermo Fisher Scientific.

Competitors:

• Illumina (ILMN): Market leader in NGS and a competitor in synthetic library screening.
• Thermo Fisher Scientific (TMO): Leading player in instrumentation and PCR and qPCR.
• Agilent Technologies (A): Competitor in DNA synthesis and microarray-based NGS.
• Synthego (SYGO): Competitor in gene editing and CRISPR screening services.

Potential Challenges and Opportunities:

Key Challenges:

• Intense competition from established players
• Dependence on a small number of large customers
• Intellectual property protection

Key Opportunities:

• Expanding into new markets
• Developing and commercializing new product lines
• Partnering with other companies

Recent Acquisitions (last 3 years):

In June 2021, TWST acquired the CRISPR screening platform and IP portfolio of Scribe Therapeutics Inc. This acquisition aligns with TWST's strategy to become a leader in CRISPR-based synthetic biology solutions.

AI-Based Fundamental Rating:

The AI system assigns TWST a rating of 7 out of 10. This rating takes into account the company's strong market position, innovative technologies, and high growth potential. However, TWST faces competitive threats and is yet to achieve profitability.

Sources:

• Twist Bioscience Corp. Website
• Securities and Exchange Commission (SEC) filings
• Market research reports

Disclaimer:

This report is intended for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any investment decisions.

This report was generated using AI technology and may contain inaccuracies.