UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
January 7, 2019
Twist Bioscience Corporation
(Exact name of registrant as specified in its charter)
| Delaware | 001-38720 | 46-205888 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (I. R. S. Employer Identification No.) |
455 Mission Bay Boulevard South
Suite 545
San Francisco, CA 94158
(Address of principal executive offices, including ZIP code)
(800) 719-0671
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
| Item 7.01 | Regulation FD Disclosure. |
Twist Bioscience Corporation (the “Company”) is furnishing this Current Report on Form 8-K in connection with the disclosure of information, in the form of a PowerPoint presentation (the “Presentation”), to be used by the Company at various meetings with certain investors. This information may be amended or updated at any time and from time to time through another Current Report on Form 8-K, a later company filing or other means. A copy of the Presentation is furnished herewith as Exhibit 99.1 and is incorporated into this Item 7.01 by reference.
The information contained in the Presentation should be considered in the context of the Company’s filings with the Securities and Exchange Commission and other public announcements the Company may make by press release or otherwise from time to time. The Presentation speaks as of the date of this Current Report on Form 8-K. By furnishing this Current Report on Form 8-K and furnishing the Presentation, the Company makes no admission as to the materiality of any information in this Current Report on Form 8-K, including without limitation the Presentation. The Company does not have, and expressly disclaims, any obligation to release publicly any updates or any changes in our expectations or any change in events, conditions, or circumstances on which any forward-looking statement in the Presentation is based.
The information furnished in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Presentation slide deck dated January 2019. | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: January 7, 2019 | Twist Bioscience Corporation | |||||
| /s/ Mark Daniels | ||||||
| Mark Daniels | ||||||
| Senior Vice President, Chief Legal Officer, Chief Ethics and Compliance Officer, and Secretary | ||||||
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Exhibit 99.1 Powering the Synthetic Biology and Genomics Revolutions / 37th Annual JPM HC conference / January 2019 / TwistBioscience / #WeMakeDNAExhibit 99.1 Powering the Synthetic Biology and Genomics Revolutions / 37th Annual JPM HC conference / January 2019 / TwistBioscience / #WeMakeDNA
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 they do not relate strictly to historical facts and generally contain words such as believes, expects, may, will, should, seeks, approximately, intends, plans, estimates, anticipates, and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters. Although the forward-looking statements contained in this presentation are based upon information available at the time the statements are made and reflect management's good faith beliefs, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from anticipated future results. Important factors that could cause actual results to differ materially from expectations include, among others: our estimates of the size of our market opportunity; our expectations regarding our ability to increase gene production, reduce turnaround times and drive cost reductions for our customers; and our ability to enter new markets. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward- looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business. Twist Bioscience Corporation 2Safe 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 they do not relate strictly to historical facts and generally contain words such as believes, expects, may, will, should, seeks, approximately, intends, plans, estimates, anticipates, and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters. Although the forward-looking statements contained in this presentation are based upon information available at the time the statements are made and reflect management's good faith beliefs, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from anticipated future results. Important factors that could cause actual results to differ materially from expectations include, among others: our estimates of the size of our market opportunity; our expectations regarding our ability to increase gene production, reduce turnaround times and drive cost reductions for our customers; and our ability to enter new markets. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward- looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business. Twist Bioscience Corporation 2
Writing Synthetic DNA on Silicon Platform Fueling the Industrialization of Synthetic Biology KEY ADVANTAGES OF WRITING DNA ON SILICON MINIATURIZATION THROUGHPUT LOW COST VERSATILE PLATFORM 3-6 10 less volume of required reagents 20M oligos/month Driving adoption and new applications Broad applications Twist Bioscience Corporation 3Writing Synthetic DNA on Silicon Platform Fueling the Industrialization of Synthetic Biology KEY ADVANTAGES OF WRITING DNA ON SILICON MINIATURIZATION THROUGHPUT LOW COST VERSATILE PLATFORM 3-6 10 less volume of required reagents 20M oligos/month Driving adoption and new applications Broad applications Twist Bioscience Corporation 3
Our Versatile DNA Synthesis Platform Has Broad Applications GENE DNA/ANTIBODY NGS DRUG DISCOVERY DNA DNA CRISPR & DEVELOPMENT SYNTHESIS LIBRARIES BIODETECTION DATA STORAGE COMPUTING Product Available Developing Product Available Product Available Launched Developing Potential Twist’s versatile DNA synthesis platform has broad application across many enabling synthetic biology products, and we are just beginning… Twist Bioscience Corporation 4Our Versatile DNA Synthesis Platform Has Broad Applications GENE DNA/ANTIBODY NGS DRUG DISCOVERY DNA DNA CRISPR & DEVELOPMENT SYNTHESIS LIBRARIES BIODETECTION DATA STORAGE COMPUTING Product Available Developing Product Available Product Available Launched Developing Potential Twist’s versatile DNA synthesis platform has broad application across many enabling synthetic biology products, and we are just beginning… Twist Bioscience Corporation 4
Our Strategy GENOMICS: TARGETED NGS SYNTHETIC BIOLOGY: GENE SYNTHESIS OPEN NEW MARKETS Near-term strategic priorities Long-term initiatives • Augment our product offering to meet the • Lead the Buyer market Twist’s advantages in… growing needs of our existing and • Convert Makers into Buyers potential new customers Exome • Expand into adjacent addressable markets • Performance • Customization • Leverage our platform and industry partnerships to create new market • Full kit opportunities for our products “Make” “Buy” 10%* 20% $950M $300M Annual Annual Custom Growth Growth • Turnaround time DRUG DISCOVERY • Affordable pilot and scaling • NGS QC on all probes DATA STORAGE *Source: Markets and Market Molecular Biology (2014) / BCC Research (2017) Twist Bioscience Corporation 5Our Strategy GENOMICS: TARGETED NGS SYNTHETIC BIOLOGY: GENE SYNTHESIS OPEN NEW MARKETS Near-term strategic priorities Long-term initiatives • Augment our product offering to meet the • Lead the Buyer market Twist’s advantages in… growing needs of our existing and • Convert Makers into Buyers potential new customers Exome • Expand into adjacent addressable markets • Performance • Customization • Leverage our platform and industry partnerships to create new market • Full kit opportunities for our products “Make” “Buy” 10%* 20% $950M $300M Annual Annual Custom Growth Growth • Turnaround time DRUG DISCOVERY • Affordable pilot and scaling • NGS QC on all probes DATA STORAGE *Source: Markets and Market Molecular Biology (2014) / BCC Research (2017) Twist Bioscience Corporation 5
Twist Bioscience Pipeline MARKET OPPORTUNITIES EXPLORATION PROOF OF CONCEPT BETA COMMERCIAL NEXT STEPS • Continue to drive growth, Synthetic Biology: add market share Synthetic Genes, • 5kb genes, Twist API DNA Libraries and 1 Oligo Pools • NPI roadmap • Continue converting NGS pilot accounts to production • Launch NGS Genomics: 2 e-commerce platform Targeted NGS • ISO 13485 certification • Backend in China • POC GPCR library and Ab Biological Drug optimization solution Discovery and 3 Development • Establish partnerships • Continue to develop Digital Data Storage partnerships to explore in DNA digital data storage in DNA 1 Products addressing this market include clonal, non-clonal genes (gene fragments), oligo pools and DNA libraries 2 Products addressing this market include NGS exome capture and NGS custom capture 3 Products addressing this market include custom DNA libraries, our proprietary GPCR-targeting antibody library and our antibody optimization solution Twist Bioscience Corporation 6Twist Bioscience Pipeline MARKET OPPORTUNITIES EXPLORATION PROOF OF CONCEPT BETA COMMERCIAL NEXT STEPS • Continue to drive growth, Synthetic Biology: add market share Synthetic Genes, • 5kb genes, Twist API DNA Libraries and 1 Oligo Pools • NPI roadmap • Continue converting NGS pilot accounts to production • Launch NGS Genomics: 2 e-commerce platform Targeted NGS • ISO 13485 certification • Backend in China • POC GPCR library and Ab Biological Drug optimization solution Discovery and 3 Development • Establish partnerships • Continue to develop Digital Data Storage partnerships to explore in DNA digital data storage in DNA 1 Products addressing this market include clonal, non-clonal genes (gene fragments), oligo pools and DNA libraries 2 Products addressing this market include NGS exome capture and NGS custom capture 3 Products addressing this market include custom DNA libraries, our proprietary GPCR-targeting antibody library and our antibody optimization solution Twist Bioscience Corporation 6
TWIST’S PLATFROM TECHNOLOGY ADDRESSES Multiple Large Market Opportunities LARGE MARKET OPPORTUNITIES LARGE MARKET $1.3B $0.5B $35B+ DRUG DISCOVERY/ SYNTHETIC GENOMICS: DATA STORAGE DEVELOPMENT BIOLOGY TARGETED NGS • Competitive • Fast Customization • High Quality Diversity • Permanence Turnaround Time Hits / Leads • Performance • Density • Lower Cost • Shorter Time and Cost • Full Kit • Ease of Copying from Target to IND • High Throughput • High Quality • Universal Format • High Quality SHORT TERM GOAL MID TERM GOAL LONG TERM GOAL Grow Revenue Develop novel therapeutics Enter technology market Source: BCC Report (2017), Markets and Markets (2014) DeciBio (2015) Source: LDC Market Analysis, LTO Program Technology Provider Companies Twist Bioscience Corporation 7TWIST’S PLATFROM TECHNOLOGY ADDRESSES Multiple Large Market Opportunities LARGE MARKET OPPORTUNITIES LARGE MARKET $1.3B $0.5B $35B+ DRUG DISCOVERY/ SYNTHETIC GENOMICS: DATA STORAGE DEVELOPMENT BIOLOGY TARGETED NGS • Competitive • Fast Customization • High Quality Diversity • Permanence Turnaround Time Hits / Leads • Performance • Density • Lower Cost • Shorter Time and Cost • Full Kit • Ease of Copying from Target to IND • High Throughput • High Quality • Universal Format • High Quality SHORT TERM GOAL MID TERM GOAL LONG TERM GOAL Grow Revenue Develop novel therapeutics Enter technology market Source: BCC Report (2017), Markets and Markets (2014) DeciBio (2015) Source: LDC Market Analysis, LTO Program Technology Provider Companies Twist Bioscience Corporation 7
Synthetic Biology is a Rapidly Growing $4B Opportunity NEEDS NEW APPLICATIONS FOR SYNTHETIC DNA Healthcare • Antibodies / TCR • Better drug development tools to lessen time • Vaccines and lower costs • Immuno and Cancer Therapies • More effective diagnostic tools for DNA • Small Molecule Drug Manufacture extraction to lower costs (i.e. NGS) Industrial • Increased population growth impacting the • Specialty Chemicals sustainability of finite resources • Advanced Property We need a new • Industrial production to address the needs of Materials type of DNA civilization supplier to meet demand Agriculture • Self-fertilizing crops • Global population growing with decrease in • Oil-Free Fertilizers per capita arable land • Drought Solutions • Food security and increased nutrition • New Disease Protection Source: BCC Research Twist Bioscience Corporation 8Synthetic Biology is a Rapidly Growing $4B Opportunity NEEDS NEW APPLICATIONS FOR SYNTHETIC DNA Healthcare • Antibodies / TCR • Better drug development tools to lessen time • Vaccines and lower costs • Immuno and Cancer Therapies • More effective diagnostic tools for DNA • Small Molecule Drug Manufacture extraction to lower costs (i.e. NGS) Industrial • Increased population growth impacting the • Specialty Chemicals sustainability of finite resources • Advanced Property We need a new • Industrial production to address the needs of Materials type of DNA civilization supplier to meet demand Agriculture • Self-fertilizing crops • Global population growing with decrease in • Oil-Free Fertilizers per capita arable land • Drought Solutions • Food security and increased nutrition • New Disease Protection Source: BCC Research Twist Bioscience Corporation 8
Gene Synthesis Market: Buyers and Makers $1.3B / Year Small Scale, “Make” Large Scale, Academic Users Synthesis Supplies Price-Sensitive Commercial Users (Enzymes, Primers, Cells, Plates) Value: Speed, Throughput “Buy” and Quality “ ” I Hate Synthetic DNA Cloning $950M “ ” $300M Can’t get what I need Source: BCC Report (2017), Markets and Markets Molecular Biology (2014) Twist Bioscience Corporation 9Gene Synthesis Market: Buyers and Makers $1.3B / Year Small Scale, “Make” Large Scale, Academic Users Synthesis Supplies Price-Sensitive Commercial Users (Enzymes, Primers, Cells, Plates) Value: Speed, Throughput “Buy” and Quality “ ” I Hate Synthetic DNA Cloning $950M “ ” $300M Can’t get what I need Source: BCC Report (2017), Markets and Markets Molecular Biology (2014) Twist Bioscience Corporation 9
Rewriting DNA with the Power of Silicon 121 devices per cluster 96 WELL PLATE TWIST SILICON PLATFORM makes 1 gene can make 9,600 gene Developing Game-Changing Throughput and Cost through Quality and Speed at Scale Twist Bioscience CorporationRewriting DNA with the Power of Silicon 121 devices per cluster 96 WELL PLATE TWIST SILICON PLATFORM makes 1 gene can make 9,600 gene Developing Game-Changing Throughput and Cost through Quality and Speed at Scale Twist Bioscience Corporation
TWIST VALUE PROPOSITION Key Advantages HIGH QUALITY UNIQUE CUSTOMER EXPERIENCE LOWER COST UNPRECEDENTED THROUGHPUT / SCALE CONSISTENT RELABILITY COMPETITIVE TURNAROUND TIME COMPREHENSIVE PRODUCT OFFERING Twist Bioscience Corporation 11TWIST VALUE PROPOSITION Key Advantages HIGH QUALITY UNIQUE CUSTOMER EXPERIENCE LOWER COST UNPRECEDENTED THROUGHPUT / SCALE CONSISTENT RELABILITY COMPETITIVE TURNAROUND TIME COMPREHENSIVE PRODUCT OFFERING Twist Bioscience Corporation 11
A Unique Way to Order your DNA Online … Twist Bioscience Corporation 12A Unique Way to Order your DNA Online … Twist Bioscience Corporation 12
E-Commerce is Enabling Capture of Long Tail E-COMMERCE IMPACT Sequence Intake Q1-18 VS. Q1-19* Invoicing Codon Optimization 45% lower PO size as we reach long tail Shipping Shipping & Taxes 3.5x more orders Notifications Quoting Tracking Payment Order *unaudited, ex-Ginkgo, synbio Twist Bioscience Corporation 13E-Commerce is Enabling Capture of Long Tail E-COMMERCE IMPACT Sequence Intake Q1-18 VS. Q1-19* Invoicing Codon Optimization 45% lower PO size as we reach long tail Shipping Shipping & Taxes 3.5x more orders Notifications Quoting Tracking Payment Order *unaudited, ex-Ginkgo, synbio Twist Bioscience Corporation 13
Now Available: 5kb Genes API at disruptive price • Seamless integration • Increase serviceable market • Increase service stickiness • Enable maker to buyer conversion WITHOUT API 3.2kb 5kb WITH API Twist Bioscience Corporation 14Now Available: 5kb Genes API at disruptive price • Seamless integration • Increase serviceable market • Increase service stickiness • Enable maker to buyer conversion WITHOUT API 3.2kb 5kb WITH API Twist Bioscience Corporation 14
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 Twist Bioscience Corporation 15Disease 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 Twist Bioscience Corporation 15
Targeted NGS value chain Library Prep • Enzyme, Buffer, Primers, Barcodes $0.5B • Oligos (10s to 100,000s, pooled, high quantities) SAM • Catalog: All Exome (~20,000 known human genes) Capture • Custom: panels of 1 to 1,000s of genes, customer specific • Buffer, beads, enzyme • DNA sequencing Sequencing • Illumina dominant • Ion Torrent, PacBio, ONT niche players • Primary, secondary and tertiary analysis Analysis • Standardized (GATK) • Optional Clinical Report • Biology intensive • Research • Microbiology • Translational Applications • Applied Markets • Molecular Dx Twist Bioscience Corporation 16Targeted NGS value chain Library Prep • Enzyme, Buffer, Primers, Barcodes $0.5B • Oligos (10s to 100,000s, pooled, high quantities) SAM • Catalog: All Exome (~20,000 known human genes) Capture • Custom: panels of 1 to 1,000s of genes, customer specific • Buffer, beads, enzyme • DNA sequencing Sequencing • Illumina dominant • Ion Torrent, PacBio, ONT niche players • Primary, secondary and tertiary analysis Analysis • Standardized (GATK) • Optional Clinical Report • Biology intensive • Research • Microbiology • Translational Applications • Applied Markets • Molecular Dx Twist Bioscience Corporation 16
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 Twist Bioscience Corporation 17Targeted 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 Twist Bioscience Corporation 17
NGS Conversion – Pilot to Production Pipeline Test in customer workflow; Optimization Pricing and commercial for specifications discussions Production Pilot testing: initial use tests • Pilot to production cycle typically requires 9 to 18 months • First Twist customers moved to production Q4 2018 • Capturing more orders and increasing average order size as customer scale-up: Out of 74 major potential customers: Shipped to over 100 customers in Q1-FY19* 17 have adopted Twist in their production *unaudited Twist Bioscience Corporation 18NGS Conversion – Pilot to Production Pipeline Test in customer workflow; Optimization Pricing and commercial for specifications discussions Production Pilot testing: initial use tests • Pilot to production cycle typically requires 9 to 18 months • First Twist customers moved to production Q4 2018 • Capturing more orders and increasing average order size as customer scale-up: Out of 74 major potential customers: Shipped to over 100 customers in Q1-FY19* 17 have adopted Twist in their production *unaudited Twist Bioscience Corporation 18
Strong Orders Growth QUARTERLY ORDER VALUE ($M) FY’18: $39.4M Y/Y growth 107% Non-ginkgo $12.8 Ginkgo $10.7 $8.5 $7.4 $10.6 $6.2 $8.2 $6.7 $4.5 $4.9 $4.2 $3.7 $2.8 $2.7 $2.7 $1.2 $2.5 $2.5 $2.5 $2.2 $1.8 $1.8 $1.6 $1.5 Oct-Dec 16 Jan-Mar 17 Apr-Jun 17 Jul-Sep 17 Oct-Dec 17 Jan-Mar18 Apr-Jun18 Jul-Sep 18 Q3FY17 Q4FY17 Q1FY18 Q4FY18 Q1FY17 Q2FY17 Q2FY18 Q3FY18 Twist Bioscience Corporation 19Strong Orders Growth QUARTERLY ORDER VALUE ($M) FY’18: $39.4M Y/Y growth 107% Non-ginkgo $12.8 Ginkgo $10.7 $8.5 $7.4 $10.6 $6.2 $8.2 $6.7 $4.5 $4.9 $4.2 $3.7 $2.8 $2.7 $2.7 $1.2 $2.5 $2.5 $2.5 $2.2 $1.8 $1.8 $1.6 $1.5 Oct-Dec 16 Jan-Mar 17 Apr-Jun 17 Jul-Sep 17 Oct-Dec 17 Jan-Mar18 Apr-Jun18 Jul-Sep 18 Q3FY17 Q4FY17 Q1FY18 Q4FY18 Q1FY17 Q2FY17 Q2FY18 Q3FY18 Twist Bioscience Corporation 19
Customer Growth CUSTOMER COUNT 151% 719 YoY growth % 195% 286 97 FY 2016 FY 2017 FY 2018 Twist Bioscience Corporation 20Customer Growth CUSTOMER COUNT 151% 719 YoY growth % 195% 286 97 FY 2016 FY 2017 FY 2018 Twist Bioscience Corporation 20
Revenue Growth FY16-19 FULL-YEAR REVENUE ($M) Revenue CAGR (2016-19) $46-$48* +171% $25.4 $10.7 $2.3 FY 2016 FY 2017 FY 2018 FY 2019 Total *Twist FY19 Revenue Guidance: $46M-$48M Twist Bioscience Corporation 21Revenue Growth FY16-19 FULL-YEAR REVENUE ($M) Revenue CAGR (2016-19) $46-$48* +171% $25.4 $10.7 $2.3 FY 2016 FY 2017 FY 2018 FY 2019 Total *Twist FY19 Revenue Guidance: $46M-$48M Twist Bioscience Corporation 21
TWIST’S PLATFROM EXTENDS TO Other Growth Verticals LARGE MARKET $1.3B $0.5B $35B+ DRUG DISCOVERY/ SYNTHETIC GENOMICS: DATA STORAGE DEVELOPMENT BIOLOGY TARGETED NGS • Competitive • Fast Customization • High Quality Diversity • Permanence Turnaround Time Hits / Leads • Performance • Density • Lower Cost • Shorter Time and Cost • Full Kit • Ease of Copying from Target to IND • High Throughput • High Quality • Universal Format • High Quality SHORT TERM GOAL MID TERM GOAL LONG TERM GOAL Grow Revenue Develop novel therapeutics Enter technology market Source: BCC Report (2017), Markets and Markets (2014) DeciBio (2015) Source: LDC Market Analysis, LTO Program Technology Provider Companies Twist Bioscience Corporation 22TWIST’S PLATFROM EXTENDS TO Other Growth Verticals LARGE MARKET $1.3B $0.5B $35B+ DRUG DISCOVERY/ SYNTHETIC GENOMICS: DATA STORAGE DEVELOPMENT BIOLOGY TARGETED NGS • Competitive • Fast Customization • High Quality Diversity • Permanence Turnaround Time Hits / Leads • Performance • Density • Lower Cost • Shorter Time and Cost • Full Kit • Ease of Copying from Target to IND • High Throughput • High Quality • Universal Format • High Quality SHORT TERM GOAL MID TERM GOAL LONG TERM GOAL Grow Revenue Develop novel therapeutics Enter technology market Source: BCC Report (2017), Markets and Markets (2014) DeciBio (2015) Source: LDC Market Analysis, LTO Program Technology Provider Companies Twist Bioscience Corporation 22
Novel Protein Libraries for Drug Discovery To Enable Efficiency in Drug Discovery Precise Introduction of Variants, From Needle To Stack Diversity that Enables Screening in a Haystack of Needles Efficiency Gene Synthesis • Random diversity • Explicit Single Site • Biased representation • Even representation Multi-Site • >99% inefficiency • Human repertoire based Stretch • Lengthy optimization cycle • Fast Multi-Domain • Expensive process • Affordable Twist Bioscience Corporation 23Novel Protein Libraries for Drug Discovery To Enable Efficiency in Drug Discovery Precise Introduction of Variants, From Needle To Stack Diversity that Enables Screening in a Haystack of Needles Efficiency Gene Synthesis • Random diversity • Explicit Single Site • Biased representation • Even representation Multi-Site • >99% inefficiency • Human repertoire based Stretch • Lengthy optimization cycle • Fast Multi-Domain • Expensive process • Affordable Twist Bioscience Corporation 23
Expanding Drug Discovery Capabilities Enables Tackling Bio-Betters and Hard-to-Drug Targets Bio-Betters CUSTOM SOFTWARE High Diversity, High Quality Molecules ANTIBODY OPTIMIZATION • Affinity (pM) • Immunogenicity TAO Software • Solubility • Half-life • Druggability • Expression “Human Repertoire Inspired” Leveraging Technology NOVEL CLASS OF GPCR, to Develop Therapeutics for ION CHANNEL AND TRANSPORTER Hard-to-Drug Targets ANTIBODY LIBRARIES NOVEL DRUG DISCOVERY Twist Bioscience Corporation 24Expanding Drug Discovery Capabilities Enables Tackling Bio-Betters and Hard-to-Drug Targets Bio-Betters CUSTOM SOFTWARE High Diversity, High Quality Molecules ANTIBODY OPTIMIZATION • Affinity (pM) • Immunogenicity TAO Software • Solubility • Half-life • Druggability • Expression “Human Repertoire Inspired” Leveraging Technology NOVEL CLASS OF GPCR, to Develop Therapeutics for ION CHANNEL AND TRANSPORTER Hard-to-Drug Targets ANTIBODY LIBRARIES NOVEL DRUG DISCOVERY Twist Bioscience Corporation 24
Twist Biopharma Proof-of-Concept: GPCR Library and Bio-Better GPCR: Target 1 Bio-Better: PDL1 inhibitor “Human Repertoire Inspired” CUSTOM SOFTWARE Parental Antibody (>500 nM) Optimized Antibody (570 pM) A Panel of Cell Target(+) IgGs Identified Kd =1.1 nM 1000x fold Affinity Increase Of These Cell Binding IgGs, several are Antagonists Twist Bioscience Corporation 25Twist Biopharma Proof-of-Concept: GPCR Library and Bio-Better GPCR: Target 1 Bio-Better: PDL1 inhibitor “Human Repertoire Inspired” CUSTOM SOFTWARE Parental Antibody (>500 nM) Optimized Antibody (570 pM) A Panel of Cell Target(+) IgGs Identified Kd =1.1 nM 1000x fold Affinity Increase Of These Cell Binding IgGs, several are Antagonists Twist Bioscience Corporation 25
TWIST’S PLATFROM EXTENDS TO Other Growth Verticals LARGE MARKET $1.3B $0.5B $35B+ DRUG DISCOVERY/ SYNTHETIC GENOMICS: DATA STORAGE DEVELOPMENT BIOLOGY TARGETED NGS • Competitive • Fast Customization • High Quality Diversity • Permanence Turnaround Time Hits / Leads • Performance • Density • Lower Cost • Shorter Time and Cost • Full Kit • Ease of Copying from Target to IND • High Throughput • High Quality • Universal Format • High Quality SHORT TERM GOAL MID TERM GOAL LONG TERM GOAL Grow Revenue Develop novel therapeutics Enter technology market Source: BCC Report (2017), Markets and Markets (2014) DeciBio (2015) Source: LDC Market Analysis, LTO Program Twist Bioscience Corporation Technology Provider Companies 26TWIST’S PLATFROM EXTENDS TO Other Growth Verticals LARGE MARKET $1.3B $0.5B $35B+ DRUG DISCOVERY/ SYNTHETIC GENOMICS: DATA STORAGE DEVELOPMENT BIOLOGY TARGETED NGS • Competitive • Fast Customization • High Quality Diversity • Permanence Turnaround Time Hits / Leads • Performance • Density • Lower Cost • Shorter Time and Cost • Full Kit • Ease of Copying from Target to IND • High Throughput • High Quality • Universal Format • High Quality SHORT TERM GOAL MID TERM GOAL LONG TERM GOAL Grow Revenue Develop novel therapeutics Enter technology market Source: BCC Report (2017), Markets and Markets (2014) DeciBio (2015) Source: LDC Market Analysis, LTO Program Twist Bioscience Corporation Technology Provider Companies 26
DNA: Nature’s Choice for Data Storage MAN- MADE, STABLE FOR 1000s of YEARS NOT PERMANENT 20,000 Years ago 40,000 Years ago 560,000 - 780,000 Years ago Twist Bioscience Corporation 27DNA: Nature’s Choice for Data Storage MAN- MADE, STABLE FOR 1000s of YEARS NOT PERMANENT 20,000 Years ago 40,000 Years ago 560,000 - 780,000 Years ago Twist Bioscience Corporation 27
Data Storage in DNA 1 Coding 2 Synthesis 3 Storage 4 Retrieval 6 Decoding 5 Sequencing Permanence l Density l Random Access l Universal format Twist Bioscience Corporation 28Data Storage in DNA 1 Coding 2 Synthesis 3 Storage 4 Retrieval 6 Decoding 5 Sequencing Permanence l Density l Random Access l Universal format Twist Bioscience Corporation 28
DNA Data Storage Trends and Projections We believe new DNA technologies and cost efficiencies could surpass mature IT hardware solutions in 3–5 years $100 $1 Raw Oligo Pool cost** *** (3) Sequencing Price** (1) $0.01 $0.0001 $0.000001 Hard Drive Price (converted*)** (2) $0.00000001 Technologies optimized for memory Tape Price (converted*)** (2) $0.0000000001 $0.000000000001 –16 cost floor ~10 2000 2010 ~2020 ~2030 * 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 price as technology improves. *** Raw oligo pool cost extrapolation based on DARPA and another anticipated government-sponsored grant project objectives, both at specified time points (1) www.genome. Gov (2) Bob Fontana, IBM Systems, Storage Media Overview, May 4,2016 (3) Bioeconomy Capital, Rob Carlson, January 20, 2018, www.synthesis.cc Twist Bioscience Corporation 29 LOGARITHMIC SCALE PRICE PER BASE OF DNADNA Data Storage Trends and Projections We believe new DNA technologies and cost efficiencies could surpass mature IT hardware solutions in 3–5 years $100 $1 Raw Oligo Pool cost** *** (3) Sequencing Price** (1) $0.01 $0.0001 $0.000001 Hard Drive Price (converted*)** (2) $0.00000001 Technologies optimized for memory Tape Price (converted*)** (2) $0.0000000001 $0.000000000001 –16 cost floor ~10 2000 2010 ~2020 ~2030 * 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 price as technology improves. *** Raw oligo pool cost extrapolation based on DARPA and another anticipated government-sponsored grant project objectives, both at specified time points (1) www.genome. Gov (2) Bob Fontana, IBM Systems, Storage Media Overview, May 4,2016 (3) Bioeconomy Capital, Rob Carlson, January 20, 2018, www.synthesis.cc Twist Bioscience Corporation 29 LOGARITHMIC SCALE PRICE PER BASE OF DNA
Experienced Management Team Emily LeProust, PhD Bill Banyai, PhD Bill Peck, PhD Jim Thorburn Aaron Sato President, CEO, Co-founder COO, Co-founder CTO, Co-founder CFO CSO, Twist Pharma Mark Daniels Ray Tabibiazar Patrick Finn, PhD Patrick Weiss Paula Green Chief Legal Officer, Chief SVP Corporate VP Sales and Marketing VP Operations VP Human Resources Ethics and Compliance Development Officer, Secretary Twist Bioscience Corporation 30Experienced Management Team Emily LeProust, PhD Bill Banyai, PhD Bill Peck, PhD Jim Thorburn Aaron Sato President, CEO, Co-founder COO, Co-founder CTO, Co-founder CFO CSO, Twist Pharma Mark Daniels Ray Tabibiazar Patrick Finn, PhD Patrick Weiss Paula Green Chief Legal Officer, Chief SVP Corporate VP Sales and Marketing VP Operations VP Human Resources Ethics and Compliance Development Officer, Secretary Twist Bioscience Corporation 30
Strong Momentum and Milestones Achieved IPO October 2018 Antibody Design Capability and Drug Discovery June 2018 eCommerce Launch for Synbio May 2018 Long Term Contract Expanded to 1.3 billion bp - March 2018 NGS Launch AGBT February 2018 Data Storage Demonstration - May 2016 Beta Access Commercial launch - April 2016 Founded 2013 2016 2018 Twist Bioscience Corporation 31Strong Momentum and Milestones Achieved IPO October 2018 Antibody Design Capability and Drug Discovery June 2018 eCommerce Launch for Synbio May 2018 Long Term Contract Expanded to 1.3 billion bp - March 2018 NGS Launch AGBT February 2018 Data Storage Demonstration - May 2016 Beta Access Commercial launch - April 2016 Founded 2013 2016 2018 Twist Bioscience Corporation 31
Significant opportunities to drive further growth Proprietary drug development Data storage partnerships Establish and revenue partnerships for drug discovery & Launch antibody development discovery / development Generate scale business efficiencies Expand gene and expand product offering in China to include Drive longer genes adoption of Continued NGS products successful launch of eCommerce NEAR-TERM DRIVERS LONG-TERM DRIVERS Twist Bioscience Corporation 32Significant opportunities to drive further growth Proprietary drug development Data storage partnerships Establish and revenue partnerships for drug discovery & Launch antibody development discovery / development Generate scale business efficiencies Expand gene and expand product offering in China to include Drive longer genes adoption of Continued NGS products successful launch of eCommerce NEAR-TERM DRIVERS LONG-TERM DRIVERS Twist Bioscience Corporation 32
Why Twist? High Revenue Growth 2017-2018 revenue growth Broad Application from $10.8M to $25.4M Breakthrough Technology Multiple Product st Categories 1 DNA Writing on Silicon Platform and End Markets Large Growing Markets Synthesis DNA, NGS TE, Drug Discovery and Data Storage Unique Platform & Value Proposition Focus on Speed, Affordability, and High Quality Attractive Dynamics Experienced Team No FDA Approvals or with Strong Backing Reimbursements Twist Bioscience Corporation 33Why Twist? High Revenue Growth 2017-2018 revenue growth Broad Application from $10.8M to $25.4M Breakthrough Technology Multiple Product st Categories 1 DNA Writing on Silicon Platform and End Markets Large Growing Markets Synthesis DNA, NGS TE, Drug Discovery and Data Storage Unique Platform & Value Proposition Focus on Speed, Affordability, and High Quality Attractive Dynamics Experienced Team No FDA Approvals or with Strong Backing Reimbursements Twist Bioscience Corporation 33