Twist Bioscience Corporation · NASDAQ:TWST
Twist Bioscience — Investor Presentation (November 2018)
36 slides from Twist Bioscience's investor presentation, Nov 27, 2018
Slide 1: Powering the Synthetic Biology Revolution
November 2018 Powering the Synthetic Biology Revolution Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements. In particular, statements regarding future economic performance, finances, and expectations and objectives of management constitute forward-looking statements. Forward-looking statements can be identified by the fact that t
Slide 3: Experienced Management Team
Emily LeProust, PhD President, CEO, Co-founder Director, Applications and Chemistry R&D—Genomics Bill Banyai, PhD COO, Co-founder VP Hardware Engineering Bill Peck, PhD CTO, Co-founder Director Fluidic Systems Jim Thorburn CFO Chief Sales Officer and Co-Head of International Aaron Sato CSO, Twist Ph
Slide 4: Fueling the Industrialization of Biology
Fueling the Industrialization of Biology TWIST BIOSCIENCE KEY ADVANTAGES OF WRITING DNA ON SILICON MINIATURIZATION 103-6 less volume of required reagents THROUGHPUT 20M oligos/month LOW COST Driving adoption and new applications VERSATILE PLATFORM Broad applications Writing Synthetic DNA on Silicon
Slide 5: Our Versatile DNA Synthesis Platform Has Broad Applications
Our Versatile DNA Synthesis Platform Has Broad Applications Twist’s versatile DNA synthesis platform has broad application across many enabling synthetic biology products, and we are just beginning… GENE SYNTHESIS Product Available DNA/ANTIBODY LIBRARIES Product Available CRISPR Product Available NG
Slide 6: Our Strategy
Our Strategy Lead the Buyer market Convert Makers into Buyers Augment our product offering to meet the growing needs of our existing and potential new customers Expand into adjacent addressable markets Leverage our platform and industry partnerships to create new market opportunities for our product
Slide 7: Twist Bioscience Pipeline
Twist Bioscience Pipeline MARKET OPPORTUNITIES EXPLORATION PROOF OF CONCEPT BETA COMMERCIAL NEXT STEPS Synthetic Biology: Synthetic Genes, DNA Libraries and Oligo Pools1 Continue to drive growth Expand market adoption Genomics: Targeted NGS2 Drive adoption of our NGS products Launch NGS e-commerce p
Slide 8: Twist's Platform Technology Addresses Multiple Large Market Opportunities
DATA STORAGE Permanence Density Ease of Copying Universal Format SYNTHETIC BIOLOGY Competitive Turnaround Time Lower Cost High Throughput High Quality $1.3B DRUG DISCOVERY/ DEVELOPMENT High Quality Diversity Hits / Leads Shorter Time and Cost from Target to IND SHORT TERM GOAL Grow Revenue MID TERM
Slide 9: Synthetic Biology is a Rapidly Growing $4B Opportunity
Self-fertilizing crops Oil-Free Fertilizers Drought Solutions New Disease Protection Antibodies / TCR Vaccines Immuno and Cancer Therapies Small Molecule Drug Manufacture Specialty Chemicals Advanced Property Materials Global population growing with decrease in per capita arable land Food security a
Slide 10: Gene Synthesis Market: Buyers and Makers
$1.3B / Year “Buy” Synthetic DNA $300M “Make” Synthesis Supplies (Enzymes, Primers, Cells, Plates) $950M Gene Synthesis Market: Buyers and Makers Source: BCC Report (2017), Markets and Markets Molecular Biology (2014) Large Scale, Commercial Users Value: Speed, Throughput and Quality “ Can’t get wha
Slide 11: Rewriting DNA with the Power of Silicon
96 WELL PLATE makes 1 gene Rewriting DNA with the Power of Silicon 121 devices per cluster TWIST SILICON PLATFORM can make 9,600 genes Developing Game-Changing Throughput and Cost through Quality and Speed at Scale
Slide 12: Key Advantages
Key Advantages TWIST VALUE PROPOSITION HIGH QUALITY UNIQUE CUSTOMER EXPERIENCE LOWER COST UNPRECEDENTED THROUGHPUT / SCALE CONSISTENT RELABILITY COMPETITIVE TURNAROUND TIME COMPREHENSIVE PRODUCT OFFERING
Slide 13: Our Disruptive Technology is Enabling New Markets and Applications
Our Disruptive Technology is Enabling New Markets and Applications Cost per base pair vs NGS market size Synthesis cost per gene vs Synthetic Biology market Source: Equity research, company filings Note: NGS market data taken from U.S. DNA Sequencing Technology Markets - 2006 from Cowen and Next gen
Slide 14: A Market Leader in Gene Synthesis
A Market Leader in Gene Synthesis GENES SHIPPED >240,000 genes shipped in FY 20181 MONTHLY AVERAGE IN INCLUDING: Seven of the top 20 pharma companies by revenue Ginkgo Bioworks - Contract for up to 1.3B base pairs over four years Three of the largest agricultural biotechnology companies that use syn
Slide 15: Twist to Provide 1.3 Billion Base Pairs of DNA to Ginkgo Bioworks
TWIST BIOSCIENCE TO PROVIDE 1.3 Billion* Base Pairs of DNA to Ginkgo Bioworks to Support Expansion into New Industries Power of Scale Takes advantage of Twist’s gene production capacity: 10,000 genes per month and still increasing Rapidly expanding product portfolio Supply includes genes up to 5kb *
Slide 16: A Unique Way to Order your DNA Online
A Unique Way to Order your DNA Online …
Slide 17: e-Commerce is Complete as of May 2018
e-Commerce is Complete as of May 2018 Codon Optimization Shipping & Taxes Quoting Payment Order Tracking Notifications Shipping Invoicing Sequence Intake
Slide 18: Disease Diagnostics
Disease Diagnostics Targeted NGS is enabling reading of patient’s and/or pathogen’s DNA to inform precision or personalized medical treatment Reduced sequencing cost per sample Faster time to results Increased sensitivity / complete coverage of difficult regions
Slide 19: Targeted NGS value chain
Targeted NGS value chain $0.5B SAM Library Prep Enzyme, Buffer, Primers, Barcodes Kappa (acquired by Roche) has mind share Capture Oligos (10s to 100,000s, pooled, high quantities) Catalog: All Exome (~20,000 known human genes) Custom: panels of 1 to 1,000s of genes, customer specific Buffer, beads,
Slide 20: Targeted NGS – Strong Value Proposition
Targeted NGS – Strong Value Proposition PERFORMANCE / COST High Uniformity Low Sequencing Costs CUSTOMIZATION 2-3 Weeks Design to Production On Custom and Exome Panels FULL KIT All Consumables From One Provider
Slide 21: Strong Orders Growth
Strong Orders Growth FY’18: $39.4M1 Y/Y growth +124%1 QUARTERLY ORDER VALUE ($M) QoQ growth % Flash financials for F4Q’18 (09/30) YoY growth % 56% 7% 38% 19% 15% 26% 20% 174% 102% 138% 106% 1 1 1 Preliminary estimated data for the three months ended September 30, 2018. Our consolidated financial sta
Slide 22: Customer Growth
Customer Growth 1 CUSTOMER COUNT 97 286 7171 YoY growth % 195% 151%1 1 Customer count includes preliminary estimated data for the three months ended September 30, 2018
Slide 23: Quarterly Revenue Ramp
Quarterly Revenue Ramp QUARTERLY REVENUE RAMP ($M) 41% 33% 9% 23% 44% 5% 23% 153% 158% 103% 129% 1 1 QoQ growth % Flash financials for 4Q’18 (09/30) YoY growth % 1 Estimates based on the low-point of the estimated range based on preliminary estimated data for the three months ended September 30, 201
Slide 24: Twist's Platform Extends to Other Growth Verticals
DATA STORAGE Permanence Density Ease of Copying Universal Format SYNTHETIC BIOLOGY Competitive Turnaround Time Lower Cost High Throughput High Quality $1.3B DRUG DISCOVERY/ DEVELOPMENT High Quality Diversity Hits / Leads Shorter Time and Cost from Target to IND SHORT TERM GOAL Grow Revenue MID TERM
Slide 25: Novel Protein Libraries for Drug Discovery
Novel Protein Libraries for Drug Discovery To Enable Efficiency in Drug Discovery From Needle in a Haystack Random diversity Biased representation >99% inefficiency Lengthy optimization cycle Expensive process Gene Synthesis Single Site Multi-Site Stretch Multi-Domain Precise Introduction of Variant
Slide 26: Human Repertoire Inspired Antibody Libraries
“Human Repertoire Inspired” CUSTOM SOFTWARE High Diversity, High Quality Molecules Affinity (pM) Half-life Expression Immunogenicity Solubility Druggability ANTIBODY OPTIMIZATION Novel Class of GPCR, Ion Channel and Transporter Antibody Libraries Leveraging Technology to Develop Therapeutics for Har
Slide 27: Twist's Platform Extends to Other Growth Verticals
DATA STORAGE Permanence Density Ease of Copying Universal Format SYNTHETIC BIOLOGY Competitive Turnaround Time Lower Cost High Throughput High Quality $1.3B DRUG DISCOVERY/ DEVELOPMENT High Quality Diversity Hits / Leads Shorter Time and Cost from Target to IND SHORT TERM GOAL Grow Revenue MID TERM
Slide 28: DNA: Nature's Choice for Data Storage
MAN-MADE, NOT PERMANENT STABLE FOR 1000s of YEARS DNA: Nature’s Choice for Data Storage 560,000 - 780,000 Years ago 40,000 Years ago 20,000 Years ago
Slide 29: Data Storage in DNA
Data Storage in DNA Permanence l Density l Random Access l Universal format Synthesis 2 Storage 3 Retrieval 4 Sequencing 5 Coding 1 Decoding 6
Slide 30: DNA Data Storage Trends and Projections
DNA Data Storage Trends and Projections * DNA bases per byte for hard drive and tape shown at typical published encoding ranges from about 5:1 to 6.25:1 ** All dotted lines represent extrapolations and assumes continued trajectory of historical trends, and that there will be continued decrease in pr
Slide 31: Strong Momentum and Milestones Achieved
Alpha Access Strong Momentum and Milestones Achieved Technology Demonstration April 2015 Ecommerce Enabler Acquisition (April 2016) Beta Access Commercial launch (April 2016) Data Storage Demonstration (May 2016) Antibody Design Capability and Drug Discovery (October 2016) Partnership 2013 2015 2016
Slide 32: Quarterly Revenue Ramp and F4Q'18 Flash Financial Results
Quarterly Revenue Ramp QUARTERLY REVENUE RAMP ($M) Cash, cash equivalents and short-term investments of $80.8M as of September 30, 20182 Long-term debt of $9.7M as of September 30, 20182 QoQ growth % 41% 33% 9% 23% 44% 5% 23% FY2018: $24mm (+124% y/y) Flash financials for F4Q’18 (09/30) Revenue $8.0
Slide 33: Strong Financial Profile
Strong Financial Profile FULL-YEAR REVENUE ($M) 9-MONTHS REVENUE AS OF JUNE 30 ($M) +230% Revenue CAGR (2016-18) +133% Revenue growth % 1 Flash financials for F4Q’18 (09/30) Order value ($M) $1.2 $17.6 $39.41,2 % growth YoY -- NM 124% # of customers 97 286 7172 Gross profit ($M) ($7.2) ($13.3) ($7.0
Slide 34: Significant opportunities to drive further growth
Continued successful launch of eCommerce Drive adoption of NGS products Expand gene product offering to include longer genes Generate scale efficiencies and expand in China Launch antibody discovery / development business Establish partnerships for drug discovery & development Data storage partnersh
Slide 35: Why Twist?
Why Twist? Large Growing Markets Synthesis DNA, NGS TE, Drug Discovery and Data Storage Broad Application Multiple Product Categories and End Markets Unique Platform & Value Proposition Focus on Speed, Affordability, and High Quality Breakthrough Technology 1st DNA Writing on Silicon Platform Attrac
Slide 36: Financial summary
Financial summary Fiscal year ended Nine months ended 30-Sep-16 30-Sep-17 30-Jun-17 30-Jun-18 Revenues: Synthetic genes $1,087 $8,122 $5,379 $11,903 Oligo pools $862 $2,056 $1,512 $2,146 DNA libraries $320 $517 $410 $1,208 NGS tools — $72 – $1,763 Total revenues $2,269 $10,767 $7,301 $17,020 Operati
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