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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) May 6, 2021

 

Twist Bioscience Corporation

(Exact name of registrant as specified in its charter)

 

Delaware   001-38720   46-2058888

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I. R. S. Employer

Identification No.)

 

681 Gateway Boulevard

South San Francisco, CA 94080

(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))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class  

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock   TWST   The Nasdaq Global Select Market

 

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 2.02 Results of Operations and Financial Condition.

 

On May 6, 2021, Twist Bioscience Corporation (the “Company”) issued a press release announcing its financial results for the second quarter ended March 31, 2021. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information furnished in this Item 2.02, 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   Press release dated May 6, 2021 titled “Twist Bioscience Reports Second Quarter Fiscal 2021 Financial Results.”
     
104   Cover Page Interactive Data File (embedded within the inline XBRL document)

 

 

 

 

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: May 6, 2021 Twist Bioscience Corporation
   
  /s/ Emily M. Leproust
  Emily M. Leproust
President and Chief Executive Officer

 

 

 

Proof - Aslam resume 1.htm

 

Exhibit 99.1

 

 

 

Twist Bioscience Reports Second Quarter Fiscal 2021 Financial Results

 

-- Revenue Growth of 62% over Fiscal 2020 Second Quarter --

 

-- Order Growth of 69% Year over Year --

 

-- Gross Margin of 39% for the Quarter --

 

SOUTH SAN FRANCISCO, Calif. – May 6, 2021 – Twist Bioscience Corporation (NASDAQ: TWST), a company enabling customers to succeed through its offering of high-quality synthetic DNA using its silicon platform, today reported financial results and business highlights for the second quarter of fiscal 2021 ended March 31, 2021.

 

“The second quarter of our fiscal year delivered growth across all four areas of our business, with increasing revenue and very strong orders building momentum for the second half of the year,” said Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience. “We signed new biopharma partnerships with multiple associated programs, and we continue to drive increasing density for our data storage vertical.

 

“For the second half of fiscal 2021 we expect continued growth of our NGS and synbio customer base as we build out the Factory of the Future in Oregon. We intend to advance all programs with our biopharma partners while simultaneously generating data to support out-licensing for our proprietary antibodies. In addition, for data storage, we will continue to pursue innovative engineering and collaborate across the DNA Data Storage Alliance to prepare the market for this novel storage medium.”

 

FISCAL 2021 SECOND QUARTER FINANCIAL RESULTS

 

·Orders: Total orders received for the second quarter of fiscal 2021 were $41.7 million, compared to $24.6 million for the same period of fiscal 2020.

 

·Revenue: Total revenues were $31.2 million for the second quarter of fiscal 2021 compared to $19.3 million for the same period of fiscal 2020.

 

·Cost of Revenues: Cost of revenues for the second quarter of fiscal 2021 was $19.0 million compared to $13.6 million for the same period of fiscal 2020.

 

·Research and Development Expenses: Research and development expenses for the second quarter of fiscal 2021 were $15.8 million compared to $10.6 million for the same period of fiscal 2020.

 

·Selling, General and Administrative Expenses: Selling, general and administrative expenses for the second quarter of fiscal 2021 were $34.4 million compared to $27.2 million for the same period of fiscal 2020.

 

·Net Loss: Net loss for the second quarter of fiscal 2021 was $37.9 million, or $0.78 per share, compared to $31.8 million, or $0.85 per share, for the second quarter of fiscal 2020.

 

·Cash Position: As of March 31, 2021, the company had $555.7 million in cash, cash equivalents and short-term investments.

 

 

 

 

"We increased our margin to 39%, reflecting the impact of scaling our revenue, leveraging our fixed costs and the benefit of higher NGS product mix,” commented Jim Thorburn, CFO of Twist. “Importantly, the solid results demonstrate excellent execution across all teams at Twist.” 

 

Fiscal Second Quarter 2021 and Recent Highlights

 

·Shipped products to approximately 1,700 customers in the second quarter of fiscal 2021 versus approximately 1,400 in the same period of fiscal 2020.

 

·Exercised our right of first refusal which gives a cost-effective option to double manufacturing capacity at the “Factory of the Future” just outside of Portland, Oregon

 

·Launched the Twist NGS Methylation Detection System, a robust, end-to-end sample preparation and target enrichment solution for identifying methylated regions in the human genome. DNA methylation plays a key role in many biological processes including cancer.

 

·Received Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA), together with Biotia, for the SARS-CoV-2 Next-Generation Sequencing (NGS) Assay.

 

·Partnered with Watchmaker Genomics to enable innovative research across a wide range of high throughput sequencing applications including tumor profiling, inherited disease detection, liquid biopsy assays and minimal residual disease monitoring.

 

·Added new synthetic RNA controls to develop, validate and verify tests for SARS-CoV-2. The new controls include the B.1.351 (first identified in South Africa) and P.1 (first identified in Brazil) variants of SARS-CoV-2.

 

·Announced three new NGS customers in APAC: Berry Genomics, Victoria Clinical Genetics Services (VCGS) and AcornMed Biotechnology.

 

·Announced three new Twist Biopharma collaborations with Kyowa Kirin, Stanford’s Innovate Medicines Accelerator and Pure Biologics, bringing the total number of partners to 21. Twist Biopharma is now advancing 25 active programs through its partners, 17 of which have milestones and royalties. Additionally, nine programs are now completed.

 

·Published positive preclinical data demonstrating that GLP-1R antibodies identified from Twist Biopharma’s proprietary G-protein coupled receptor (GPCR) libraries showed potent blood glucose control. Glucagon-like peptide-1 receptor (GLP-1R) is a class B GPCR that acts as the receptor for the incretin GLP-1, a peptide released to regulate insulin levels in response to food intake. The data were published online in mAbs.

 

·Exercised our option to purchase all rights to a G-coupled protein receptor (GPCR) library and its proprietary Twist Antibody Optimization software, both developed in collaboration with Distributed Bio.

 

·Named one of Fast Company’s World’s Most Innovative Companies for 2021.

 

·Earned Great Place to Work certification™.

 

 

 

 

Fiscal 2021 Financial Guidance

 

The following statements are based on Twist’s current expectations for fiscal 2021. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. Twist does not plan to update, nor does it undertake any obligation to update, this outlook in the future.

 

For the full fiscal year 2021, Twist provided the following updated financial guidance:

 

·Increasing revenue guidance in the range of $121 million to $129 million

 

oRevenue from Ginkgo Bioworks expected to be in the range of $11 to $12 million
   
oSynbio revenue excluding Ginkgo Bioworks is expected to be in the range of $43 to $46 million
   
oNGS revenue is estimated to be in the range of $62 to $66 million
   
oBiopharma revenue is estimated to be approximately $5 million

 

·Gross margin is expected to be 36% to 38% for fiscal 2021
   
·Operating expenses including R&D and SG&A are expected to be $192 million for the year
   
·Net loss expected in the range of $144 million to $150 million to reflect our increased investments in our commercial organization and research and development activities

 

oR&D is expected to be approximately $66 million
   
oStock-based compensation is expected to be approximately $33 million
   
oDepreciation is expected to be $10 million
   
oCapital expenditures are expected to be $40 million, including expansion into “Factory of the Future”

 

Conference Call Information

 

The company plans to hold a conference call and live audio webcast for analysts and investors today at 4:30 p.m. Eastern Time to discuss its financial results and provide an update on the company’s business. The call can be accessed by dialing (866) 688-0947 (domestic) or (409) 217-8781 (international) and refer to the conference ID 4647559. A telephonic replay of the conference call will be available beginning approximately four hours after the call through May 20, 2021 and may be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international). The replay conference ID is 4647559. The webcast replay will be available for two weeks.

 

Given the circumstances globally, it is recommended to dial-in at most 15 to 20 minutes prior to the call start to reduce waiting times. If a participant will be listen-only, they are encouraged to listen via the webcast on Twist’s investor page.

 

About Twist Bioscience Corporation

 

Twist Bioscience is a leading and rapidly growing synthetic biology and genomics company that has developed a disruptive DNA synthesis platform to industrialize the engineering of biology.

 

The core of the platform is a proprietary technology that pioneers a new method of manufacturing synthetic DNA by “writing” DNA on a silicon chip. Twist is leveraging its unique technology to manufacture a broad range of synthetic DNA-based products, including synthetic genes, tools for next-generation sequencing (NGS) preparation, and antibody libraries for drug discovery and development. Twist is also pursuing longer-term opportunities in digital data storage in DNA and biologics drug discovery. Twist makes products for use across many industries including healthcare, industrial chemicals, agriculture and academic research.

 

 

 

 

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Legal Notice Regarding Forward-Looking Statements

 

This press release contains forward-looking statements. All statements other than statements of historical facts contained herein are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements under the heading “Fiscal 2021 Financial Guidance” and contained in the quotations of our Chief Executive Officer and Chief Financial Officer.as well as statements regarding future growth and expansion plans and Twist’s other expectations regarding its future financial performance. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors that may cause Twist’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risks and uncertainties of the duration, extent and impact of the COVID-19 pandemic, including any reductions in demand for our products (or deferred or canceled orders) globally or in certain regions; the ability to attract new customers and retain and grow sales from existing customers; risks and uncertainties of rapidly changing technologies and extensive competition in synthetic biology could make the products Twist is developing obsolete or non-competitive; uncertainties of the retention of significant customers; supply chain and other disruptions caused by the COVID-19 pandemic or otherwise; risks of third party claims alleging infringement of patents and proprietary rights or seeking to invalidate Twist’s patents or proprietary rights; and the risk that Twist’s proprietary rights may be insufficient to protect its technologies. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Twist’s business in general, see Twist’s risk factors set forth in Twist’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on February 9, 2021 and subsequent filings with the SEC. In addition, many of the foregoing risks and uncertainties are, and could be, exacerbated by the COVID-19 pandemic and any worsening of global or regional business and economic environment as a result. We cannot at this time predict the extent of the impact of the COVID-19 pandemic and any resulting business or economic impact, but it could have a material adverse effect on our business, financial condition, results of operations and cash flows. Any forward-looking statements contained in this press release speak only as of the date hereof, and Twist Bioscience specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

 

CONTACT:

 

Angela Bitting

SVP, Corporate Affairs

925- 202-6211

abitting@twistbioscience.com

  

# # #

 

 

 

 

Twist Bioscience Corporation

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands)

 

   Three months ended March 31,   Six months ended March 31, 
   2021   2020   2021   2020 
Revenues  $31,204   $19,297   $59,364   $36,461 
Operating expenses:                    
Cost of revenues   19,028    13,564    37,190    27,356 
Research and development   15,791    10,629    29,791    20,926 
Selling, general and administrative   34,389    27,190    63,181    53,595 
Litigation settlement   -    -    -    22,500 
Total operating expenses  $69,208   $51,383   $130,162   $124,377 
Loss from operations  $(38,004)  $(32,086)  $(70,798)  $(87,916)
Interest income   157    576    291    1,140 
Interest expense   (95)   (215)   (213)   (463)
Other income (expense), net   84    18    8    (69)
Provision for income taxes   (61)   (61)   (107)   (98)
Net loss attributable to common stockholders  $(37,919)  $(31,768)  $(70,819)  $(87,406)
Net loss per common share, basic and diluted  $(0.78)  $(0.85)  $(1.50)  $(2.49)
Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted   48,709    37,164    47,340    35,058 

 

 

 

 

Twist Bioscience Corporation
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)

 

   March 31, 2021   September 30, 2020 
Assets          
Cash and cash equivalents  $399,329   $93,667 
Short-term investments   156,329    196,335 
Accounts receivable, net   27,290    26,376 
Inventories   15,838    12,289 
Prepaid expenses and other current assets   9,213    6,203 
Total current assets   607,999    334,870 
Property and equipment, net   31,975    25,466 
Operating lease right-of-use assets   30,997    33,699 
Other non-current assets   6,318    4,847 
Total assets  $677,289   $398,882 
Current liabilities          
Accounts payable  $8,528   $4,830 
Accrued liabilities   18,169    18,846 
Current portion of long-term debt   3,168    3,333 
Current portion of operating lease liabilities   6,514    6,409 
Other current liabilities   4,063    2,611 
Total current liabilities   40,442    36,029 
Operating lease liabilities, net of current portion   22,244    24,837 
Long-term debt, net of current portion   -    1,403 
Other non-current liabilities   422    351 
Total liabilities   63,108    62,620 
Total stockholders’ equity (deficit)  $614,181   $336,262 
Total liabilities and stockholders’ equity  $677,289   $398,882