Twist Bioscience: Revisiting Some Major Concerns

Synthetic biology is the single most exciting theme we cover, but it’s also been a big disappointment for investors. Harnessing the power of nature sounds easier than it looks. Just over a decade ago, Intrexon went public with their “channel” business model which smelled similar to Ginkgo Bioworks (DNA), another synbio disappointment that purchased Zymergen, another failure of a synbio company. These are just some examples of how exasperating it’s been to be a synthetic biology investor. That brings us to the topic of today’s article – Twist Bioscience (TWST).

A Path to Profitability

We cover around 460 disruptive tech stocks and have invested in over 35 which allows us to spot trends across companies and industries. For example, inventory issues are plaguing hardware companies as supply chain whiplash effects finally manifest themselves from The Rona. Additionally, both hardware and software companies are conserving cash as raising capital becomes more difficult. It’s almost expected that companies with dwindling cash positions should be addressing these constraints with some stated plan to achieve profitability. Here’s where Twist sits.

At the end of 2023, the company had cash and cash equivalents of $311 million and expects to burn through $66 million this year based on the below table taken from their latest earnings deck.