Core Viewpoint - Twist Biosciences is discussing a license agreement for its B-Body bispecific technology platform during a conference call, indicating a strategic move to enhance its product offerings and market position [1][2]. Group 1: Company Overview - The conference call features key executives including Dr. Emily Leproust (CEO), Adam Laponis (CFO), Dr. Patrick Finn (President and COO), and Dr. Colby Souders (CSO), highlighting the leadership team's involvement in the company's strategic initiatives [3]. - The press release regarding the license agreement was made available on the company's website, demonstrating transparency and communication with stakeholders [2]. Group 2: Conference Call Details - The call is being recorded and will be archived in the Investors section of the company's website for two weeks, ensuring that interested parties can access the information later [3]. - Participants are encouraged to limit their questions to one during the Q&A session, promoting an orderly discussion [3].

Twist Licenses Bispecific Platform February 2026 Legal Disclaimer This presentation contains forward-looking statements. All statements other than statements of historical facts contained herein are forward-looking statements 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, the ability to utilize the B- Body platform to expand service offerings and meet future demand for bisp ...

Industry Overview - The biotech industry had a strong performance in 2025, outperforming NVIDIA, with continued enthusiasm into 2026 [5] - There are concerns regarding the FDA's regulatory environment, described as chaotic, which may impact drug approvals [5][9] FDA Regulatory Environment - Richard Pasdur, a former senior FDA executive, expressed concerns about the breach of the firewall between political appointees and drug reviewers, indicating potential risks for the pharma industry [7] - The FDA's current commissioner, Marty Makary, aims to speed up drug approvals, but there are conflicting signals regarding the actual operating reality [9] Company Earnings Predictions Eli Lilly (Ticker: LLY) - Expected earnings per share range from $6.99 to $7.86, with a consensus estimate of $7.48 and revenue of $17.85 billion, indicating over 30% year-over-year earnings growth [15] - Analysts predict a likely earnings beat due to a history of exceeding expectations [15][16] Novo Nordisk (Ticker: NVO) - Earnings per share expectations are between $0.89 and $0.90, with revenue projected at $11.96 billion, showing a flat to slightly down trend [17] - Analysts express a higher possibility of a miss compared to Eli Lilly, citing recent struggles and a new CEO's uncertain direction [17][19] Twist Bioscience (Ticker: TWST) - Reported revenue of $104 million for Q1 2026, consistent with preliminary results, though still unprofitable [20] - The company has shown consistent revenue growth despite industry challenges, reducing cash burn and moving towards profitability [20]

Company Overview - Twist Bioscience's stock has experienced a significant rebound in recent months, attributed to increasing optimism surrounding AI-enabled drug discovery and the adoption of minimal residual disease (MRD) testing [1] - The Biopharma segment of Twist is reaccelerating, driven by customers engaged in AI-enabled drug discovery and next-generation sequencing (NGS) [1] Investment Strategy - Narweena, an asset management firm led by Richard Durant, focuses on identifying market dislocations caused by a poor understanding of long-term business prospects, aiming for excess risk-adjusted returns [1] - The research process at Narweena emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and a long-term investment horizon [1] - The firm targets smaller cap stocks and markets where competitive advantages are not immediately apparent, driven by the belief that an aging population and low growth will create new investment opportunities [1] Market Dynamics - Many industries are expected to face stagnation or secular decline, which may paradoxically enhance business performance due to reduced competition [1] - Conversely, some businesses may encounter rising costs and diseconomies of scale, impacting their performance negatively [1] - The economy is increasingly characterized by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] Leadership Background - Richard Durant holds undergraduate degrees in engineering and finance from the University of Adelaide and an MBA from Nanyang Technological University, where he was on the Dean's Honors List [1] - He has successfully passed the CFA exams, indicating a strong foundation in financial analysis [1]

Company Overview - Twist Bioscience's stock has experienced a significant rebound in recent months, attributed to increasing optimism surrounding AI-enabled drug discovery and the adoption of minimal residual disease (MRD) testing [1] - The Biopharma segment of Twist is reaccelerating, driven by customers engaged in AI-enabled drug discovery and next-generation sequencing (NGS) [1] Investment Strategy - Narweena, an asset management firm led by Richard Durant, focuses on identifying market dislocations caused by a poor understanding of long-term business prospects, aiming for excess risk-adjusted returns [1] - The research process at Narweena emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and a long-term investment horizon [1] - The firm targets smaller cap stocks and markets where competitive advantages are not immediately apparent, driven by the belief that an aging population and low growth will create new investment opportunities [1] Market Dynamics - Many industries are expected to face stagnation or secular decline, which may paradoxically enhance business performance due to reduced competition [1] - Conversely, some businesses may encounter rising costs and diseconomies of scale, impacting their performance negatively [1] - The economy is increasingly characterized by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1]

Corporate Governance - Twist Bioscience held its 2026 annual meeting of stockholders via an online webcast, focusing on electing directors, conducting a non-binding advisory vote on executive compensation, and ratifying the independent auditor for fiscal 2026 [2] - All three director nominees—Keith Crandell, Jan Johannessen, and Trynka Shineman Blake—were elected, and the advisory vote on executive compensation was approved [6] Meeting Logistics - The meeting was chaired by Lead Independent Director Robert Chess, with attendance from various directors and company officers, including CEO Emily Leproust [3][4] - The board set December 26, 2025, as the record date for determining stockholders entitled to vote, with proxies received for 56,260,506 shares, representing approximately 91.81% of total votes [5][6] Auditor Ratification - Stockholders ratified Ernst & Young LLP as the auditor for fiscal 2026, with a full vote tally to be filed on Form 8-K within four business days [6]

Core Insights - Twist Bioscience Corporation reported first-quarter sales of $103.70 million, a 17% year-over-year increase, surpassing both Wall Street expectations and management guidance [1] - The company aims for profitability through consistent revenue growth, maintaining gross margins above 50%, and disciplined spending to invest in scalable growth opportunities [2] - Fiscal 2026 sales guidance was raised from $425 million-$435 million to $435 million-$440 million, exceeding the consensus estimate of $431.39 million [3] Analyst Ratings - Barclays analyst Luke Sergott maintained an Overweight rating on Twist Bioscience and increased the price target from $39 to $50 [4] - Evercore ISI Group analyst Vijay Kumar maintained an Outperform rating and raised the price target from $42 to $52 [4]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] Investment Opportunity - A specific company is highlighted as a potential investment opportunity, possessing critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI data centers [3][7] - This company is not a chipmaker or cloud platform but is positioned to benefit significantly from the anticipated surge in electricity demand driven by AI technologies [3][6] Energy Demand and Infrastructure - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming as much energy as small cities [2] - The company in focus is involved in nuclear energy infrastructure, which is crucial for America's future power strategy, and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] Financial Position - The company is noted for being completely debt-free and holding a substantial cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] - It is trading at less than 7 times earnings, indicating a potentially undervalued investment opportunity in the context of its critical role in the AI and energy sectors [10][11] Market Trends - The company is expected to benefit from the onshoring trend driven by tariffs, as well as the surge in U.S. LNG exports under the current administration's energy policies [5][14] - There is a growing recognition on Wall Street of this company's potential, as it quietly capitalizes on multiple favorable market trends without the high valuations typical of many tech stocks [8][9] Future Outlook - The influx of talent into the AI sector is anticipated to drive continuous innovation and advancements, making investments in AI infrastructure increasingly attractive [12][13] - The overall narrative suggests that investing in this company represents a strategic move to capitalize on the convergence of AI and energy needs, with projections of significant returns within the next 12 to 24 months [15][19]

Core Thesis - Twist Bioscience Corporation is positioned as a leader in synthetic biology and next-generation genomics, with a strong growth trajectory and potential for re-rating in the market [1][4]. Company Overview - Twist Bioscience manufactures synthetic DNA-based products using a unique silicon-based DNA synthesis technology, enabling high-precision and high-throughput manufacturing [2]. - The company's offerings include synthetic DNA, gene fragments, next-generation sequencing tools, and a growing biopharma business focused on antibody discovery and humanized transgenic mouse models [2]. Customer Adoption and Financial Performance - Customer adoption has increased to approximately 2,484, up from 2,300 a year earlier, supported by collaborations with partners like Element Biosciences and Ginkgo Bioworks [3]. - For Q3 2025, revenue reached $96.1 million, an 18% year-over-year increase, driven by growth in synthetic biology ($35.2 million), next-generation sequencing ($55.3 million), and biopharma ($5.6 million) [3]. - Gross margin was reported at 53.4%, leading to a net income of $20.4 million and adjusted EBITDA of $8 million [3]. Financial Outlook - The company projects full-year revenue between $374 million and $376 million, with expectations for adjusted EBITDA breakeven by fiscal 2026 [4]. - Twist has a solid balance sheet with $250.8 million in cash and $478.2 million in equity, indicating a strong financial position [4]. - Despite a market cap of $1.6 billion and a share price of $26.33, the current valuation reflects caution rather than the company's strengths, suggesting potential for future growth [4].

Revenue and Growth - Revenue for the three months ended December 31, 2025, increased by 16.9% to $103.7 million from $88.7 million, driven by growth in NGS Applications and DNA Synthesis and Protein Solutions revenues [106]. - The number of genes shipped increased by 32.2% to approximately 271,000 genes for the three months ended December 31, 2025, compared to approximately 205,000 genes for the same period in 2024 [115]. - Total revenues from DNA synthesis and protein solutions were $51.1 million, accounting for 49% of total revenues, while NGS applications generated $52.6 million, accounting for 51% [110]. Financial Performance - Gross margin improved to 52.0% from 48.3%, primarily due to increased revenues and cost savings from process improvements [112]. - Net loss for the three months ended December 31, 2025, was $30.5 million, a slight improvement from a net loss of $31.6 million for the same period in 2024 [105]. Cash Flow and Investments - Cash, cash equivalents, and short-term investments totaled $197.9 million as of December 31, 2025 [105]. - Net cash used in operating activities increased to $24.8 million for the three months ended December 31, 2025, compared to $21.4 million for the same period in 2024 [125]. - Net cash used in operating activities was $24.8 million for the three months ended December 31, 2025, primarily due to a net loss of $30.5 million, adjusted for non-cash items including depreciation and amortization of $6.2 million and stock-based compensation of $13.3 million [126]. - Net cash used in investing activities was $9.9 million during the three months ended December 31, 2025, consisting of purchases of property and equipment totaling $10.0 million [128]. - Net cash provided by financing activities was $0.3 million in the three months ended December 31, 2025, from the exercise of stock options [129]. Expenses - Research and development expenses decreased by 20% to $17.1 million for the three months ended December 31, 2025, compared to $21.3 million for the same period in 2024 [118]. - Selling, general and administrative expenses increased by 24% to $69.7 million for the three months ended December 31, 2025, compared to $56.2 million for the same period in 2024 [119]. Market and Risk - The company has no off-balance sheet arrangements [130]. - There were no changes to critical accounting policies and estimates during the three months ended December 31, 2025 [133]. - The company's exposure to market risk has not changed materially since September 30, 2025 [135].