Twist Bioscience Corporation (TWST): history, ownership, mission, how it works & makes money

A Brief History of Twist Bioscience Corporation (TWST)

Foundation and Early Years

Twist Bioscience Corporation was founded in 2013 by Emily Leproust, Bill Egan, and Erik Fogel. The company is based in San Francisco, California, and focuses on DNA synthesis technology. Initially, it aimed to address the limitations of traditional methods by using a novel silicon-based platform.

Product Innovations

Twist's proprietary platform utilizes a silicon-based DNA synthesis process, allowing for the production of highly accurate and scalable DNA at lower costs. In 2015, Twist launched its first product, the Twist Bioscience DNA synthesis service. By 2018, the company had expanded its offerings with the introduction of Twist's full-length genes and other synthetic biology products.

Funding and Growth

In June 2015, Twist raised $37 million in a Series B funding round, led by Sequoia Capital and Grove Ventures. In 2018, the company went public, and its initial public offering (IPO) raised approximately $70 million, with shares priced at $14 each. By the end of 2020, Twist had raised around $380 million through various funding rounds, as outlined in the table below.

Strategic Partnerships and Collaborations

Twist Bioscience has engaged in various partnerships to expand its market reach. Notably, in 2020, the company partnered with Amgen to create synthetic DNA for drug development, which led to a $60 million deal. In 2021, Twist announced a partnership with Illumina to improve sequencing technologies.

Current Financial Performance

As of Q3 2023, Twist Bioscience reported revenues of $45 million, marking an increase of 20% year-over-year. Their gross profit was approximately $28 million, yielding a gross margin of around 62%. The company reported a net loss of $12 million for the quarter.

Recent Developments

In August 2023, Twist launched a new service to provide custom synthetic antibodies for therapeutic applications, to cater to the growing biopharmaceutical market. This service aims to enhance Twist's competitive position in the biotechnology sector, which is projected to grow to $1.4 trillion by 2026.

Market Position and Outlook

Twist Bioscience has established itself as a leader in the synthetic DNA market. According to a report from Grand View Research, the global synthetic biology market is anticipated to reach approximately $20.1 billion by 2026, growing at a CAGR of 22.5%. Twist's innovative technologies and strategic partnerships position it well for future growth in this lucrative market.

A Who Owns Twist Bioscience Corporation (TWST)

Shareholder Composition

As of the latest filings, Twist Bioscience Corporation (TWST) has a diverse shareholder structure that includes institutional investors, mutual funds, and individual shareholders. Below is the breakdown of ownership:

Top Institutional Investors

The following table lists the top institutional investors holding shares in Twist Bioscience Corporation:

Insider Ownership

Insider ownership at Twist Bioscience consists of several key executives and board members who hold shares in the company. As of the latest data:

Recent Financial Performance

Twist Bioscience Corporation reported a total revenue of $87 million for the fiscal year ending in 2023, representing a growth of 25% compared to the previous year. The company reported a net loss of $30 million, which is an improvement from a net loss of $40 million in the prior year.

Stock Performance

As of October 2023, Twist Bioscience's stock (TWST) trades at approximately $20.50 per share, with a market capitalization of around $1.1 billion. The stock has shown volatility with a year-to-date range from $18.00 to $30.00.

Future Ownership Trends

Analysts predict that institutional ownership might increase given the positive trajectory in revenue growth and product development. The anticipated increase in demand for DNA synthesis is expected to attract more institutional investors in the coming quarters.

Twist Bioscience Corporation (TWST) Mission Statement

Company Vision

The mission of Twist Bioscience Corporation is to enable customers to unlock the potential of synthetic biology by providing a revolutionary platform that facilitates the production of high-quality synthetic DNA at a lower cost and faster than traditional methods. The company aims to drive advancements in biotechnology, medicine, and agriculture through its core products and services.

Core Values

• Innovation: Commitment to developing cutting-edge technology.
• Integrity: Maintaining the highest ethical standards in all operations.
• Collaboration: Partnering with customers to drive mutual success.
• Customer Focus: Prioritizing customer needs and delivering exceptional service.

Business Objectives

Twist Bioscience is focused on several key business objectives, which include:

• Developing next-generation DNA synthesis technology.
• Expanding into new markets, including diagnostics and therapeutics.
• Enhancing operational efficiency to reduce costs.
• Establishing strategic partnerships to leverage complementary strengths.

Recent Financial Performance

As of Q4 2023, Twist Bioscience reported:

• Revenue of $30 million for Q4 2023.
• Net income of $5 million.
• Annual revenue growth of 25% year-over-year.

Market Position

Twist Bioscience is positioned as a leader in the DNA synthesis market, with a significant market share estimated at 15%. The company's unique technology allows for rapid production and customization of DNA, critical for applications in:

• Genomics.
• Gene therapy.
• Bioproduction.
• Drug discovery.

Customer Base

Twist services a diverse range of customers, including:

• Biotechnology companies.
• Pharmaceutical firms.
• Academic institutions.
• Research organizations.

Recent Partnerships

In 2023, Twist Bioscience established significant partnerships that include:

• Collaboration with a major pharmaceutical company for developing a new class of therapeutics.
• Partnership with a leading agricultural firm to enhance crop engineering through advanced DNA synthesis.

Future Goals

The strategic goals for Twist Bioscience moving forward involve:

• Expanding capacity to produce over 1 million unique DNA sequences annually.
• Entering new international markets in Europe and Asia.
• Investing in R&D with a projected budget of $20 million for 2024.

Financial Summary Table

Conclusion Statements in Mission

The mission statement of Twist Bioscience emphasizes their commitment to innovation, quality, and customer-centric solutions within the field of synthetic biology. This direction speaks to the larger purpose of the company in contributing to world-changing advancements in technology and medicine.

How Twist Bioscience Corporation (TWST) Works

Overview of Twist Bioscience

Twist Bioscience Corporation, established in 2013, specializes in DNA synthesis technology. The company leverages a proprietary silicon-based platform to conduct its operations, focusing on the production of DNA for a variety of applications including genomics, synthetic biology, and pharmaceuticals.

Business Model

Twist operates on a business model that includes multiple revenue streams:

• Custom DNA synthesis
• Gene fragments
• Next-Generation Sequencing (NGS) products
• High-throughput DNA synthesis services

Market Segmentation

The company's primary markets include:

• Academic Research
• Biotechnology Companies
• Pharmaceutical Industry
• Agricultural and Industrial Biotechnology

Financial Performance

Technology and Innovation

Twist employs a unique DNA synthesis platform based on a silicon chip. This technology allows for:

• High accuracy in DNA synthesis
• Scalability of production
• Cost efficiency compared to traditional methods

Partnerships and Collaborations

Twist collaborates with various organizations in the biotech and pharmaceutical sectors, enhancing its research and development efforts:

• Partnership with `Amgen` for the development of synthetic genes
• Collaboration with `Illumina` to integrate NGS technology
• Strategic alliances with `Ginkgo Bioworks` for synthetic biology applications

Recent Developments

In 2023, Twist launched several new products aimed at expanding its market presence:

• Twist's Comprehensive Gene Panel for cancer research
• Enhanced DNA Library Preparation Kits for NGS
• Innovative solutions targeting CRISPR applications

Stock Performance

As of October 2023, Twist Bioscience's stock performance is characterized by:

• Current Share Price: $39.86
• Market Capitalization: $2.03 billion
• 1-Year Price Range: $28.00 - $48.00

Future Outlook

Analysts project steady growth for Twist Bioscience, driven by:

• Increasing demand for custom DNA synthesis
• Expansion into international markets
• Continued innovation in synthetic biology

Summary of Key Financial Metrics

How Twist Bioscience Corporation (TWST) Makes Money

Product Offerings

Twist Bioscience Corporation generates revenue primarily through the sale of synthetic DNA products. Their offerings are categorized into several segments:

• Synthetic Gene Products: Custom DNA synthesis and gene fragments.
• Next-Generation Sequencing (NGS): Targeted enrichment and sequencing samples.
• CRISPR Applications: Tools for gene editing and synthetic biology.
• Antibody Discovery: Synthetic antibodies for various applications.

Commercial Partnerships

Twist Bioscience has formed strategic alliances with various biotechnology and pharmaceutical companies. These partnerships are crucial for expanding market reach and product development.

• Collaborative Agreements: Co-development contracts with companies like Amgen and Merck.
• Licensing: Licensing agreements that provide revenue through upfront fees and royalties.
• Joint Ventures: Collaborative projects enhancing research capabilities.

Market Segmentation

The company operates across a diverse range of sectors, thus minimizing risk and maximizing opportunity. Market segments include:

• Healthcare: Focus on gene therapies and diagnostics.
• Agriculture: Development of synthetic DNA for crop improvement.
• Industrial Biotechnology: Applications in biofuels and chemicals.

Financial Performance

In fiscal year 2022, Twist Bioscience reported substantial financial metrics that highlighted their growth potential:

• Total Revenue: $91 million, a 39% increase from 2021.
• Gross Profit Margin: 45% indicating effective cost management.
• Net Loss: $33 million, primarily due to increased R&D expenditures.

Investment in R&D

A significant portion of Twist Bioscience's budget is allocated to research and development, which is vital for innovation. In fiscal year 2022, the investment was instrumental in expanding their product lines:

• R&D Expenses: $40 million.
• Employee R&D Growth: Increased by 20% to 250 employees.
• New Product Launches: 5 new gene synthesis platforms introduced.

Future Growth Projections

Analyst projections for Twist Bioscience indicate continued revenue growth driven by market demand:

• Projected Revenue (2023): $125 million.
• CAGR (2022-2025): 30% expected annual growth.
• Market Share Expansion: Targeting a 10% increase in market share across synthetic biology sectors.