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Twist Bioscience


Twist Bioscience Corporation is a synthetic biology company that manufactures synthetic DNA-based products using a proprietary semiconductor-based platform for high-throughput synthesis on silicon chips.
Founded in 2013 by Emily Leproust, Bill Banyai, and Bill Peck in South San Francisco, California, the company sought to disrupt traditional DNA synthesis methods by scaling production to industrial levels, enabling applications in gene therapy, diagnostics, therapeutics development, and agricultural biotechnology.
Twist Bioscience went public in 2018 and has expanded operations, including a secondary facility dubbed the "Factory of the Future" in Wilsonville, Oregon, to meet growing demand for custom genes, oligonucleotides, and variant libraries used in next-generation sequencing and protein engineering.
Key achievements include collaborations with entities like Absci for AI-driven antibody design and advancements in synthetic biology tools that support research in infectious diseases, oncology, and genomics.
The company has faced controversies, including a 2015 trade secrets lawsuit from former employer Agilent Technologies, settled for $22.5 million, and more recent challenges such as a 2022 short-seller report alleging misleading claims about its technology's scalability, alongside an ongoing federal securities lawsuit accusing executives of overstating platform capabilities.

History

Founding and Early Development

Twist Bioscience was founded in 2013 in , by Emily M. Leproust, Bill Banyai, and Bill Peck to develop a scalable, silicon-based platform for high-throughput , aiming to address limitations in traditional phosphoramidite-based methods by leveraging manufacturing techniques for greater efficiency and reduced costs. Leproust, who became the company's CEO, brought expertise from prior roles in at Agilent Technologies, while Banyai contributed hardware engineering experience from Complete Genomics, and Peck provided chemical engineering insights. In its initial years, the company focused on of its proprietary , which enables parallel synthesis of thousands of DNA oligos on a single , followed by enzymatic into longer . By 2014, Twist secured $26 million in Series B funding led by investors including Threshold Ventures and Alta Partners to advance commercialization of this semiconductor-based synthetic process. The following year, it raised an oversubscribed $37 million Series C round, supporting platform scaling and early customer engagements. Early milestones included a 2015 partnership with , under which Twist produced over 100 million bases of synthetic DNA—representing approximately 10% of the global synthetic DNA market that year—and a collaboration with to encode and store in synthesized DNA strands, demonstrating the platform's versatility for applications. These efforts culminated in the 2016 commercial launch of synthetic genes and a $61 million Series D financing, bringing total equity funding since inception to $133 million alongside $20 million in debt, positioning the company for broader market expansion.

Initial Public Offering and Growth Phase

Twist Bioscience Corporation priced its initial public offering on October 30, 2018, selling 5.2 million shares of common stock at $14 per share, the low end of the marketed range of $14 to $16, raising net proceeds of approximately $70.5 million after underwriting discounts and commissions. The shares began trading on the Nasdaq Global Select Market under the ticker symbol "TWST" the following day, October 31, 2018. The IPO provided capital to accelerate platform development, expand manufacturing capacity, and support commercial scaling of its silicon-based DNA synthesis technology, amid a market valuation that positioned the company at around $350 million at pricing. Post-IPO, the stock price more than doubled within nine months, reflecting investor optimism about its disruptive potential in synthetic biology despite operating in a low-margin sector. Revenue growth accelerated in the years immediately following the IPO, driven by expanded customer adoption in biopharma, academic research, and next-generation sequencing (NGS) applications. Fiscal year 2019 revenue, ended September 30, reached $53.9 million, more than doubling from $24.9 million in fiscal 2018. This momentum continued with fiscal 2020 revenue climbing to $90.1 million and fiscal 2021 to $131.6 million, supported by increased order volumes and diversification into NGS tools launched in late 2018. To fund further expansion, the company conducted follow-on public offerings, including an upsized $130 million raise in February 2020 and another in February 2022. Operational scaling included infrastructure investments and strategic acquisitions to broaden capabilities beyond core . In 2020, Twist announced construction of a second manufacturing facility in —termed the "Factory of the Future"—designed for higher throughput and automation, with initial commercial shipments commencing in 2021. The company also pursued inorganic growth, completing acquisitions such as Abveris in 2021 to integrate services, enhancing its offerings in therapeutic development and enabling entry into higher-value markets like biopharma toolkits. By fiscal 2023, cumulative revenue had grown to $245.1 million, a 20% increase from the prior year, underscoring sustained demand despite competitive pressures and early skepticism regarding profitability in .

Recent Developments and Milestones

In August 2024, Twist Bioscience expanded its gene synthesis offerings to include long gene fragments up to 50 kilobases, enabling more complex construct assembly for applications in and pathway optimization. This followed the launch of Express Genes, which contributed to a significant backlog buildup and order volume increase in the second half of fiscal 2024, reflecting improved throughput in high-volume, low-complexity gene production. The company advanced its antibody discovery capabilities through multiple collaborations. In August 2024, Twist partnered with bitBiome to develop a Transaminase Enzyme Screening Kit, leveraging Twist's DNA synthesis for rapid screening from bitBiome's microbial database. October 2024 saw an agreement with Absci to design novel therapeutic antibodies using Absci's AI platform and Twist's synthetic DNA libraries against an undisclosed target. In May 2025, Twist revised its collaboration with Ginkgo Bioworks into a three-year, $15 million agreement with prepaid DNA orders and licensing rights for Ginkgo's tools. That same month, it expanded its partnership with Element Biosciences to co-develop end-to-end next-generation sequencing solutions for the AVITI system. By September 2025, Twist collaborated with the Synthetic Design Lab to support high-throughput binder discovery and screening. Financially, Twist demonstrated operational efficiency gains since the fiscal second quarter of 2023, with gross margins rising from 30.8% to near 50% targets by mid-2025 amid stagnant customer numbers but higher per-customer output. Quarterly reached $92.8 million in the fiscal second quarter of 2025 (ended March 31, 2025), up 23% year-over-year, and $96.06 million in the third quarter (ended June 30, 2025), reflecting 17.91% growth. Biopharma segment increased 10% to $5.6 million in the third quarter. In October 2024, Twist secured $15 million upfront from XOMA Royalty in exchange for royalties on future therapeutic milestones. The company also released its 2024 Corporate Responsibility Report in September 2024, quantifying the of its oligo manufacturing for NGS target enrichment.

Technology and Platform

Core Silicon-Based DNA Synthesis Method

Twist Bioscience's core DNA synthesis method relies on a proprietary semiconductor-based platform that adapts traditional chemistry to etched with high-density nanowells. Each , comparable in size to a standard 96-well plate, contains approximately 10,000 nanowells, with each well holding a volume of about 100 nL— a 1,000-fold reduction from the 100 μL volumes in conventional 96-well plate methods. This , inspired by fabrication techniques, enables parallel synthesis of unique single-stranded oligonucleotides (ssDNA oligos) in individual wells, where reagents are precisely dispensed—often via inkjet-like printing—to specific locations for spatially controlled reactions. The synthesis process begins with the attachment of phosphoramidites to the surface within each nanowell, followed by iterative cycles of deprotection, coupling, capping, and oxidation to extend the DNA chain by . Wells are designed with uniform dimensions, such as diameters around 600 Å, to ensure consistent reaction efficiency and minimize cross-contamination. This setup supports the of oligos up to 300 pairs in length, with the platform capable of generating over 1 million unique ssDNA oligos per run, organized in discrete clusters featuring up to 121 individually addressable synthesis sites. Post-synthesis, the oligos are cleaved from the chip and purified, yielding quantities optimized for downstream enzymatic into longer genes via methods like , rather than the excess or insufficient amounts produced by traditional in plates or microarray-based approaches. Key advantages stem from the silicon substrate's precision engineering, which allows for higher density and uniformity compared to glass-based microarrays, reducing error rates and reagent consumption while lowering costs to approximately 10 cents per base—versus 17–30 cents in competing methods. The platform's scalability supports synthesizing up to 9,600 genes per chip at full capacity, facilitating high-throughput applications without proportional increases in volume or waste. This approach addresses limitations of earlier techniques, such as low yield in microarrays or labor-intensive scaling in well plates, by leveraging semiconductor-derived automation for error-corrected, parallel production.

Innovations and Technical Advantages

Twist Bioscience's silicon-based platform represents a core innovation by adapting fabrication techniques to chemistry, enabling the production of in billions of discrete nanowells etched onto . This method allows for the parallel of up to 9,600 genes per , contrasting sharply with traditional 96-well plate approaches that yield only one gene in equivalent space. The addressable and discrete nature of each nanowell cluster minimizes cross-contamination risks and synthesis complications inherent in bulkier, less parallel traditional formats. A primary technical advantage is the drastic miniaturization of reaction volumes, reduced from 50 µL in conventional methods to 50 nL—a 1,000-fold decrease—which slashes reagent consumption, boosts efficiency, and lowers per-gene costs by 2-3 times while enabling higher DNA output per chip. The platform achieves ultra-high throughput, capable of generating one million oligonucleotides simultaneously, and delivers DNA with low error rates that outperform competitors in gene fragment comparisons. Further advantages include scalability for rapid, affordable production, such as clonal genes up to 1.8 at 9 cents per base or up to 5 within 15 days, alleviating bottlenecks in workflows compared to cloning-dependent traditional . This high-quality, uniform output supports diverse applications in and by providing large quantities of error-minimized DNA at reduced timelines and expense.

Limitations and Technical Challenges

Twist Bioscience's silicon-based platform, while enabling high-throughput production, faces constraints in handling complex sequences, including repetitive regions of 20 pairs or longer with temperatures of 60°C or higher, extreme outside the 25-65% range, and homopolymers, which can hinder successful synthesis due to secondary structure formation and uneven phosphoramidite coupling efficiency. The company employs algorithms to score sequences for synthesis feasibility, flagging potential issues but rejecting or requiring modifications for highly problematic designs, such as unpadded repetitive response elements where other vendors decline outright. Error rates represent another challenge, with oligonucleotides exhibiting an average of one error per 3,000 bases and gene fragments one per 7,500 bases, necessitating downstream screening of multiple clones or next-generation sequencing to isolate correct sequences, which increases time and cost for error-prone assemblies. These rates stem from the platform's reliance on phosphoramidite chemistry adapted to arrays, where incomplete cycles (efficiencies around 99% per step) compound over length, yielding diminishing full-length products without . Length limitations further constrain direct synthesis, with current capabilities topping at 5 for gene fragments, beyond which hierarchical assembly via and is required, introducing additional error propagation, bias in amplification of GC-rich regions, and labor-intensive purification steps. challenges have manifested in operational disruptions, such as a 2021 gene production halt due to manufacturing inconsistencies, highlighting vulnerabilities in transitioning from chip-based oligo pools to assembled products at commercial volumes despite expansions in facilities.

Products and Services

Core DNA Synthesis Offerings

Twist Bioscience's core DNA synthesis offerings center on custom synthetic genes and oligonucleotide pools, leveraging a proprietary silicon-based platform that enables high-throughput production of double-stranded DNA (dsDNA) genes up to 5 kb in length and single-stranded DNA (ssDNA) oligonucleotides up to 300 nucleotides (nt). The platform synthesizes up to 9,600 genes or over 1 million unique ssDNA oligos per silicon chip in a single run, facilitating scalable, cost-effective manufacturing for research and industrial applications. Synthetic gene products include linear gene fragments and clonal genes. Gene fragments are dsDNA sequences ranging from 0.3 to 5 kb, delivered at yields of 100 ng to 1 µg with a turnaround time of 2–4 business days and an error rate of 1 in 7,500 bases. Clonal genes, cloned into customer-specified vectors, offer similar length ranges but higher yields up to 1 mg, with express options delivering in 4–7 business days and standard in 10 business days; these undergo next-generation sequencing (NGS) verification for sequence-perfect clones. Pricing starts at 7¢ per for fragments and 9¢ per for clonal genes, subject to terms. Oligonucleotide pools consist of user-designed collections of ssDNA oligos, typically 20–300 long, with no upper limit on pool size and minimum orders around 2,000 oligos. These pools achieve high uniformity, with over 90% of oligos represented within twofold of the mean coverage, yields exceeding 0.2 fmol per oligo, and error rates up to 1 in 3,000 bases, supporting applications such as guide RNA libraries and reporter assays. Double-stranded oligo pools are also available for specific needs like pooled structure synthesis. These offerings emphasize precision and speed over traditional phosphoramidite-based methods, with the platform's reducing costs and enabling complex designs without sequence constraints common in older . Recent expansions, such as express delivery for all fragments starting at two business days as of July 2025, further enhance accessibility for time-sensitive projects.

Specialized Applications and Tools

Twist Bioscience develops specialized tools for next-generation sequencing (NGS), including hybrid capture-based target enrichment panels and associated library preparation kits that achieve high on-target capture efficiency and uniform coverage across targeted regions. These kits support streamlined workflows, converting samples to sequencer-ready libraries in a single day while maximizing sequencing efficiency through optimized dsDNA probes verified via NGS . Custom panels accommodate over one million probes per pool, enabling precise targeting of genomic areas such as medically relevant genes or large cohorts, which reduces overall sequencing costs and enhances variant detection confidence by increasing depth without proportional input increases. For antibody discovery and optimization, Twist offers the Library of Libraries, a suite of over 17 off-the-shelf synthetic libraries designed for challenging targets, each comprising up to $10^{10} antibody variants in developable human frameworks across , scFv, and VHH scaffolds. These libraries facilitate for therapeutic antibodies, with validation through NGS to confirm variant presence and support hit identification in phage or yeast display systems. The Antibody Optimization () platform extends this capability by generating custom display libraries from client sequences, exerting precise control over diversity, CDR length variation, ratios, and codon usage to tailor libraries for specific optimization needs in . Oligo pools represent another specialized toolset, synthesized at scale for applications in , including guide RNA libraries and genomic perturbation screens, where uniformity and enable accurate studies. These offerings, built on the company's silicon-platform , address limitations in traditional methods by providing error-corrected, high-diversity reagents essential for iterative research in therapeutics and diagnostics.

Custom Solutions for End-Users

Twist Bioscience offers custom DNA synthesis services directly to end-users, including academic researchers, biotechnology companies, and pharmaceutical developers, enabling the production of tailored synthetic DNA for applications in synthetic biology, drug discovery, and genomics. These solutions utilize the company's proprietary silicon-based platform, which supports high-throughput synthesis of gene fragments, oligo pools, and libraries with high fidelity and scalability. Customers can specify sequences for synthesis, with options for codon optimization, complex designs, and integration into workflows such as next-generation sequencing (NGS) target enrichment. Gene synthesis services provide custom fragments starting at 7 cents per , with rapid delivery options including an express service for urgent needs and multiplexed fragments for high-volume parallel synthesis. Clonal genes and pre-designed vectors are available for immediate , achieving turnaround times as short as 4 business days, facilitating experiments in protein expression and functional studies. Oligo pools, synthesized in massive parallel formats, support applications like screening, variant libraries, and epigenetic analysis, where uniformity and low error rates are critical. For NGS-focused end-users, custom panels enable targeted enrichment across diverse genomic regions, with designs accommodating varying panel sizes, requirements, and coverage depths for research in cancer, infectious diseases, and . These panels integrate with standard sequencing workflows, offering high on-target efficiency and uniformity to minimize off-target noise. Twist also provides for probe design and customization, ensuring solutions align with specific experimental goals such as methyl-seq or large-scale genomic screens. End-users benefit from the platform's advantages in cost-efficiency and precision, as the chip-based process allows for denser array synthesis compared to traditional methods, reducing per-base costs for complex orders. However, customization is limited to sequence-verified outputs, with users responsible for downstream validation in biological assays. These offerings position Twist as a key supplier for iterative R&D cycles, where of genetic constructs accelerates innovation in therapeutic development and .

Operations

Facilities and Manufacturing

Twist Bioscience's manufacturing operations center on a proprietary silicon-based platform that fabricates in parallel across thousands of nanowells etched into , enabling scalable of custom genes and libraries. This semiconductor-inspired , which "writes" DNA sequences directly onto the substrate, supports high-throughput output with reduced costs compared to traditional methods, though it requires precise control over deposition and cleavage steps within controlled environments. The company's primary commercial-scale manufacturing facility is a 110,000-square-foot site in , dubbed the "Factory of the Future," which commenced shipping synthetic DNA products on January 26, 2023. This automated, assembly-line-oriented plant more than doubles Twist's overall production capacity from prior levels equivalent to approximately $200 million in annual revenue potential, targeting up to $500 million through enhanced throughput and new product lines. The $100 million investment in this facility incorporates advanced and real-time monitoring to accelerate cycle times, achieving DNA order fulfillment in 5 to 7 business days by late 2023. Initial and R&D-focused manufacturing originated at Twist's headquarters in , where a 2018 expansion added 12,000 square feet of production space, effectively doubling output at the time through integrated video-monitored workflows. Complementary operations include a , , facility opened on July 6, 2022, dedicated to antibody-related synthesis and discovery scaling, leveraging the same silicon platform for high-volume gene assembly. These sites collectively address demand for next-generation sequencing tools and products, with Wilsonville handling the bulk of volume as of fiscal 2024 disclosures. No major facility expansions were announced through October 2025, though ongoing optimizations in the Oregon plant continue to support revenue growth projections.

Partnerships and Collaborations

Twist Bioscience maintains extensive partnerships with pharmaceutical and firms, primarily focused on discovery, therapeutic development, and applications leveraging its high-throughput platform. Notable collaborations include agreements with Kyowa Kirin for GPCR-targeted discovery using Twist's "Library of Libraries," announced in 2023, which enables the partner to access diverse synthetic libraries for biologics optimization. Similarly, Ono Pharmaceutical entered a collaboration in August 2023 to identify therapeutic candidates against undisclosed targets via Twist's synthetic libraries. These deals often involve upfront payments, milestone-based royalties, and access to Twist's proprietary libraries, supporting operational scalability through recurring orders. In next-generation sequencing (NGS) workflows, Twist has strategic alliances with leading instrument providers, including Illumina, PacBio, Ultima Genomics, (ONT), and , facilitating integrated library preparation and sequencing solutions for research and clinical applications. A key expansion occurred in May 2025 with Element Biosciences, co-developing end-to-end workflows for the AVITI system, followed by the October 2025 launch of the Trinity Freestyle sequencing workflow, which streamlines sample-to-data processes and enhances Twist's role in NGS supply chains. Additional collaborations span and data management. Twist revised its multi-year agreement with in May 2025, securing a $15 million commitment over three years for orders without minimums, while gaining licenses to Ginkgo's long DNA technology assets. In September 2025, Twist partnered with Synthetic Design Lab to integrate with antibody engineering for biopharma solutions, combining and screening capabilities. Earlier efforts include a 2020 alliance with Illumina, , and to develop DNA-based data storage standards, positioning Twist's platform for archival applications beyond traditional biotech.
PartnerFocus AreaKey DateTerms Highlights
AbsciAI-driven antibody designOctober 2024Undisclosed target; leverages generative AI with synthetic DNA libraries
bitBiomeBiocatalytic enzymesAugust 2024Access to microbial database for enzyme discovery via high-capacity synthesis
AstellasAntibody therapeutics (third collaboration)April 2023Supports immuno-oncology and other modalities with Twist Biopharma Solutions
Boehringer IngelheimTherapeutic antibodiesSeptember 2021Broad research across multiple targets using synthetic libraries
These partnerships underscore Twist's operational strategy of embedding its synthesis technology into customer pipelines, though outcomes depend on partner validation of library performance in downstream assays, with no guaranteed from disclosed terms.

Supply Chain and Scalability

Twist Bioscience procures raw materials, components, and sub-assemblies from a global network of suppliers for its silicon-based operations, including specialized items such as wafers, reagents, and microfluidic elements. The company primarily operates on a basis rather than long-term s for most materials, supplemented by contingency plans, vendor assessments, and select long-term agreements to ensure supply continuity and . Some sub-assemblies are outsourced to third-party contract manufacturers. A notable exists in the reliance on a single-source supplier for a critical component integral to the process; although maintains reserve stockpiles and has identified alternative sources, the loss of this supplier could necessitate process redesigns, leading to production delays and operational disruptions. Supply chain risks are exacerbated by potential shortages, geopolitical tensions, trade policy changes, or cyberattacks targeting supplier IT systems, which could increase costs or interrupt material flows. Third-party carriers handle product distribution, adding exposure to disruptions. To address scalability, Twist has expanded manufacturing through its "Factory of the Future" in —a 110,000-square-foot facility leased through 2044, operational since 2022 and initiating commercial gene shipments in January 2023 after an approximately $87 million investment—which doubled overall production capacity when combined with the existing 91,791-square-foot South San Francisco site leased through 2028. These facilities, staffed by 357 operations personnel as of September 30, 2024, enable 24/7 automated synthesis of millions of high-quality daily via proprietary equipment and processes. The silicon platform's standardization and digitization support efficient scaling, bolstered by a $1 billion infrastructure investment program. As of June 2025, the plant operated below 50% capacity, affording significant headroom for demand-driven growth. Scalability enhancements include workflow optimizations yielding express delivery turnarounds of two business days for fragments as of July 2025, irrespective of length, volume, or format, demonstrating improved throughput without proportional cost increases. Historical challenges, such as a 2021 production halt due to errors that temporarily disrupted supply, were resolved by early 2022 through process refinements, underscoring the complexities of high-precision . Ongoing risks include failure to expand commensurate with customer —potentially forfeiting —and integration hurdles for new , though the platform's mitigates legacy bottlenecks.

Financial Performance

Revenue Growth and Profitability Path

Twist Bioscience has achieved sustained revenue expansion since its inception, with fiscal year 2024 revenue reaching $312.97 million, a 27.7% increase from $245.11 million in fiscal 2023, primarily fueled by demand in next-generation sequencing (NGS) tools and synthetic biology (SynBio) applications. This growth trajectory persisted into fiscal 2025, where second-quarter revenue (ended March 31, 2025) totaled $92.8 million, reflecting a 23% year-over-year rise, followed by third-quarter revenue of $96.1 million, up 18% from the prior year's third quarter. The company guided full fiscal 2025 revenue to $374–376 million, implying approximately 20% annual growth, supported by NGS revenue projected at 22–23% expansion and contributions from biopharma services. Despite gains, Twist Bioscience remains unprofitable on a basis, reporting a trailing twelve-month net loss of $85.19 million as of June 30, 2025, with a of -23.51%. Progress toward has materialized through improvements and operational efficiencies; third-quarter fiscal 2025 reached 53.4%, up from 49.6% in the second quarter and prior years' levels around 40%, driven by higher throughput in silicon-based platforms and reduced per-base costs. Adjusted EBITDA losses narrowed to approximately $8 million in the third quarter, reflecting scaled fixed costs against growing topline . The company's strategy for achieving profitability centers on leveraging its proprietary high-throughput synthesis technology to capture larger shares of the $10 billion-plus DNA synthesis market, while controlling cash burn—reduced by 31% year-over-year through disciplined R&D and investments. has emphasized sequential EBITDA improvements and margin targets exceeding 50%, predicated on sustained demand from academic, biopharma, and industrial clients, though execution risks persist amid competitive pressures from traditional phosphoramidite-based providers. As of October 2025, Twist has not attained positive from operations but anticipates further leverage from facility expansions in South San Francisco and the to support volume-driven .
Fiscal YearRevenue ($M)YoY Growth (%)
2021-
202254.5
202320.1
202427.7
2025 (Guided)20.0

Stock Performance and Market Position

Twist Bioscience Corporation (: TWST) went public on October 30, 2018, with an price of $14 per share, raising approximately $225 million. The stock experienced significant volatility post-IPO, driven by investor enthusiasm for amid broader biotech sector trends; for instance, it surged over 500% in 2020 amid pandemic-related demand for rapid capabilities, reaching highs above $100 per share before correcting sharply. Annual returns reflected this: +577.65% in 2020, followed by -14.15% in 2019, -41.78% in 2021, and -71.41% in 2022, underscoring sensitivity to macroeconomic factors, execution risks in scaling manufacturing, and competition in oligonucleotide markets. As of October 24, 2025, TWST closed at $34.11, marking a 7.16% daily gain and trading within a 52-week range of $24.07 to $55.33, with a of approximately $2.06 billion. Recent performance showed intra-month , including a 16.26% rise on October 20, 2025, to $32.74, amid broader market rotations toward stocks, though the of 2.39 indicates heightened sensitivity to sector swings. has supported intermittent recoveries, with fiscal Q3 2025 at $96.1 million (up 18% year-over-year) and gross margins expanding to 53.4%, signaling operational leverage from platform efficiencies; full-year 2025 guidance projects $367–377 million in revenue. Analysts forecast FY2026 revenue at $437.9 million, implying 21% year-over-year , though persistent net losses (e.g., negative margins exceeding -75% in recent quarters) and cash burn remain drags on valuation. In the synthetic biology sector, holds a leadership position in high-throughput , capturing demand in next-generation sequencing (NGS) tools and custom gene libraries, with NGS revenue growing 27% in recent periods. The addressable market for is estimated at $19.75 billion in 2025, with a projected 19.37% CAGR to $47.88 billion by 2030, where differentiates via silicon-based platform scalability over traditional phosphoramidite methods used by rivals. Key competitors include Integrated DNA Technologies (, owned by Danaher), GenScript, Eurofins , and broader players like ; has outperformed SPAC-era synbio peers like Ginkgo in stock returns, benefiting from direct-to-consumer synthesis focus rather than organism engineering. Relative market share in segments stands at around 1.61% as of Q2 2025, trailing incumbents like Agilent (30.19%) but gaining via in error-corrected oligos and biopharma applications.

Economic Challenges and Investor Concerns

Twist Bioscience has faced persistent profitability challenges despite growth, reporting a trailing twelve-month net loss of $85.19 million on $362.27 million in as of October 2025, with a of -23.51%. Operating expenses, particularly in and sales, general, and administrative functions, have outpaced gains, contributing to negative and adjusted EBITDA losses, even as gross margins improved to 53.4% in fiscal Q3 2025 from 43.3% the prior year due to higher factory utilization. These issues stem from sector-wide pressures, including weak demand in next-generation sequencing and academic markets, exacerbated by potential tariffs on pharmaceutical imports and uncertainties in . Investor concerns have intensified around the company's cash burn and path to , with cash and short-term investments at $250.8 million at the end of fiscal Q3 2025 providing runway but highlighting risks of dilution if growth falters. The stock experienced significant , plunging 33.8% over four weeks in August 2025 and hitting a 52-week low of $24.27 in , reflecting broader biotech headwinds and skepticism over execution in scaling operations. Analyst actions, such as ' downgrade in October 2025 citing macroeconomic pressures and R&D cost escalation, have underscored worries about overvaluation amid unproven long-term margins. Ongoing litigation from investors alleging misleading statements on technological capabilities has added to sentiment risks, potentially eroding confidence in management's projections for gains. While revenue reached a record $96.1 million in fiscal Q3 2025, up 18% year-over-year, the absence of sustained profitability after over five years of operations fuels doubts about competitive moats against lower-cost rivals and the viability of high-throughput synthesis economics.

Controversies and Criticisms

Short Seller Allegations and Responses

On November 15, 2022, Scorpion Capital published a report alleging that Twist Bioscience was operating an unsustainable "Ponzi-like scheme" reliant on aggressive price dumping and customer subsidies to drive revenue growth, targeting low-margin academic and startup customers while failing to penetrate high-value pharmaceutical markets due to quality and consistency issues. The report claimed Twist's proprietary silicon-based DNA synthesis platform was overhyped and flawed, relying on outdated microarray technology with high error rates (up to 20%), low yields, and manual processes requiring extensive rework, rendering it uncompetitive for complex DNA needs like longer sequences or GMP-grade production. Scorpion further asserted that Twist's reported gross margins of around 45% were implausible and likely negative, citing competitor interviews indicating Twist priced DNA below cost (e.g., 9-10 cents per base pair versus higher production expenses) and subsidized deals like a $15 million Ginkgo Bioworks partnership at a -500% margin. These claims were supported by Scorpion's interviews with over 20 former employees, customers, competitors, and experts, as well as site visits to Twist's facilities and analysis of SEC filings. The report compared Twist unfavorably to failed ventures like for allegedly exaggerating technological throughput (e.g., unproven 10,000x efficiency claims) and to other synthetic biology firms such as Berkeley Lights and , predicting due to $300 million annualized cash burn against a shrinking addressable market eroded by competitors offering enzymatic or faster methods. Scorpion highlighted accounting concerns, including potential misclassification of costs of goods sold as expenses (comprising 60% of revenue) and underutilized capital expenditures like the $90 million "Factory of the Future," described as appearing deserted during inspections. In response, Twist Bioscience issued a statement on the same day dismissing the report as "highly misleading" with "distortions and inaccuracies," emphasizing its platform's scalability and growing adoption across sectors like healthcare and agriculture without directly addressing specific financial or technical claims. The company pointed to its public SEC disclosures, upcoming fiscal 2022 earnings release, and ESG report as evidence of transparency, while noting production ramp-up at its Oregon facility starting January 2023. Twist shares dropped approximately 20% on November 15, 2022, following the report's release. The allegations prompted multiple securities lawsuits accusing Twist of overstating its technology's viability and engaging in unsustainable pricing, with plaintiffs citing the report alongside internal documents and competitor statements. In September 2025, a U.S. District Court in the Northern District of denied in part Twist's motion to dismiss one such case, finding sufficient allegations of misrepresentation regarding DNA quality and cost-efficiency, and rejecting arguments that reliance on a short-seller report invalidated the claims. Capital indicated in August 2024 plans for research updates reiterating concerns, while independent analyses in 2024 noted persistent issues with gross margins and cash burn amid ongoing .

Skepticism on Technological Viability

Critics have questioned the fidelity of DNA sequences produced by Twist Bioscience's silicon-based platform, citing higher error rates compared to some competitors. Reports indicate error frequencies as high as one per 200 base pairs in target sequences, necessitating 4-5 times redundancy for genes and up to 10-20 times for oligo pools, with errors compounding geometrically in longer constructs. Ex-employees and former executives from competitors like Gen9 and IDT have described rework rates of 15-20%, where sequences often require 15 attempts to yield a correct product, leading to mutations that alter intended genes. While Twist claims error rates below 1 in 2,000 for oligo pools, independent comparisons show this lags behind enzymatic methods from firms like Codex DNA (1 in 14,000), raising doubts about reliability for precise applications such as antibody discovery or therapeutic gene synthesis. Scalability limitations stem from the platform's low per-chip yields, producing only femtograms to micrograms of DNA, which demands extensive PCR amplification that introduces additional errors and bottlenecks. This results in turnaround times of 8-10 weeks for large orders, versus 2-4 weeks from rivals, and inability to meet pharmaceutical lot sizes or timelines, as noted by Novartis scientists and major customers. The process is described as labor-intensive, requiring 12-16 personnel per shift for manual steps like multi-day batching and amplification, with 30% of orders missing deadlines due to rework—particularly for GC-rich or high-complexity sequences where failure rates are elevated. Analysts highlight linear scaling constraints in the services model, where chip-based throughput fails to translate to efficient volume production without costly workarounds like tiling, which degrade quality. The platform's restriction to short (200-300 ) limits its utility for full genes or genomes without error-prone , positioning it as inferior for GMP-grade or clinical applications where purity and consistency are paramount. Ex-Twist manufacturing staff report struggles with sample purity, excluding the technology from FDA-regulated uses, while competitors like GenScript achieve over 8 million unique oligos and Elegen produces twice the length. Emerging enzymatic synthesis from DNA Script and Molecular Assemblies threatens to undercut Twist's chemical approach, which relies on decades-old tech rather than true innovation, as critiqued by industry executives. These factors fuel skepticism that the silicon platform, despite marketed 10,000-fold throughput gains, represents an "" unable to sustain competitive edges in .

Business Model and Competitive Risks

Twist Bioscience's business model revolves around providing synthetic DNA and related products through a proprietary high-throughput platform that synthesizes oligonucleotides on silicon chips, enabling scalable production of genes, oligo pools, and DNA libraries for applications in synthetic biology, therapeutics, and research. Revenue is derived from three primary segments: synthetic biology tools (accounting for approximately 40-50% of sales, including custom genes and libraries); next-generation sequencing (NGS) products like target enrichment probes (around 20-30%); and biopharmaceutical services such as antibody discovery, optimization, and variant libraries (comprising the remainder, with rapid growth to over 30% of total revenue by fiscal 2023). This diversification mitigates reliance on any single market, with total revenue reaching $246.5 million in fiscal 2023, up 21% year-over-year, driven by volume increases and pricing stability enabled by the platform's efficiency over traditional tube-based synthesis. The model's core advantage lies in cost reduction and speed—Twist's silicon process supports parallel of up to 10,000 sequences per run at lower per-base costs compared to chemical methods—positioning it as a "DNA " for downstream applications like gene editing and . However, it requires continuous capital investment in facilities, such as the expansion in South San Francisco and the 2023 Midwest site, to achieve and support long-term profitability. Competitive risks stem from the commoditized nature of , where rivals like Integrated DNA Technologies (IDT), GenScript, and Eurofins dominate with established phosphoramidite-based production, often undercutting prices through high-volume chemical reactors. Twist's technological edge in throughput and uniformity provides a , as it remains the sole large-scale commercial provider of silicon-chip , but this could erode if competitors adopt similar innovations or if enzymatic synthesis alternatives (e.g., from emerging players like Ansa Biotechnologies) gain traction, potentially compressing margins amid pricing pressures observed in the oligo market. Further risks include dependency on biotech R&D cycles, with biopharma services vulnerable to customer concentration (top clients representing over 20% of ) and shifts in , as seen in post-2022 venture capital slowdowns. Intellectual property challenges, such as disputes over methods, and regulatory hurdles in scaling biopharma outputs could amplify these threats, while failure to sustain gross margins above 50%—achieved in recent quarters through yield improvements—might prolong unprofitability despite growth.

Regulatory and Ethical Considerations

Compliance with Biosecurity Regulations

Twist Bioscience maintains protocols aligned with the U.S. Department of Health and Human Services (HHS) Screening Framework Guidance for synthetic double-stranded DNA providers, which mandates screening of customer orders for both sequence risks and end-user legitimacy. The company verifies customer identities against government watchlists, assesses institutional affiliations, and screens DNA sequences against databases of select agents, toxins, and other pathogens of concern to prevent synthesis of hazardous materials. Additionally, Twist adheres to the U.S. Office of Science and Technology Policy (OSTP) Framework for Guiding Funding Decisions about Proposed Research Involving Enhanced Potential Pathogens, ensuring no orders facilitate dual-use research of concern without appropriate safeguards. As a participant in the International Synthesis (IGSC), Twist contributes to and implements harmonized global screening standards that exceed U.S. requirements in some areas, such as mandatory against a broader set of threat sequences and customer vetting protocols. These measures include automated and manual reviews to flag orders potentially enabling bioweapon development or unauthorized reconstruction, with flagged orders rejected or reported to authorities as needed. The company's framework integrates export controls under the U.S. (EAR), prohibiting shipments of controlled genetic materials to restricted entities or regions. In response to emerging risks from in , Twist published research in Science on October 2, 2025, evaluating screening efficacy against AI-generated sequences, demonstrating that their ThreatSeq software detects novel threats by integrating with traditional homology-based methods. This proactive approach has resulted in no publicly reported instances of non-compliance or breaches since the company's founding in 2013, though self-reported data from industry sources like IGSC audits forms the primary verification basis. Independent assessments, such as those referenced in literature, affirm that firms like Twist represent the majority of global capacity under these voluntary but rigorous standards, mitigating proliferation risks in .

Ethical Risks in Synthetic Biology

Synthetic biology, including DNA synthesis technologies pioneered by companies such as Twist Bioscience, introduces ethical risks primarily through the dual-use potential of engineered genetic materials, which can enable beneficial applications like development while also facilitating misuse for bioweapons or uncontrolled release. This duality arises because custom democratizes access to genetic sequences, lowering barriers for both legitimate researchers and potential bad actors, including non-state entities capable of assembling hazardous organisms from commercial oligos. For instance, the of de novo viral genomes, as demonstrated in historical experiments reconstructing extinct pathogens like the 1918 influenza virus, underscores the causal pathway from accessible synthesis tools to amplified threats if screening fails. A core ethical concern is the adequacy of screening protocols employed by DNA providers. Twist Bioscience, like peers, screens orders against databases of known select agents and toxins per U.S. regulations and international guidelines, rejecting hazardous sequences to prevent synthesis and shipment to unlicensed parties. However, reveals limitations: a 2025 study published in Science found that AI-generated DNA designs for dangerous proteins—such as variants—evaded standard screening by commercial providers, including Twist's systems, due to reliance on rather than functional prediction. This gap highlights a first-principles vulnerability: as advances, static blacklist-based screening cannot anticipate novel, paraphrased sequences engineered via , potentially enabling covert production of dual-use agents. Twist has acknowledged such risks, partnering on research to enhance proactive mitigation, yet critics argue insufficiently addresses global proliferation without mandatory function-based standards. Beyond , ethical risks encompass broader societal implications, such as unintended ecological disruptions from synthetic organisms escaping , though empirical cases remain limited. In biomedical contexts, synthetic biology's application raises participant issues, including off-target effects from engineered therapies, but these are mitigated by regulatory oversight like FDA trials rather than inherent to providers. frameworks, including voluntary industry codes, aim to balance innovation with restraint, yet persistent calls for international reflect unresolved tensions between rapid technological scaling—Twist's output exceeds millions of base pairs annually—and the ethical imperative to prioritize verifiable over unchecked accessibility.

Environmental Impact Claims and Scrutiny

Twist Bioscience asserts that its chip-based DNA synthesis platform significantly reduces environmental impacts compared to traditional 96-well plate methods, primarily through that lowers use and waste generation by 99.8%. The process enables synthesis of 10,000 times more per run while producing 1,000 times less chemical waste per . These reductions stem from the platform's high-density arrays, which minimize solvent volumes and hazardous byproducts inherent in conventional chemistry. In its 2023 ESG report, the company quantified the of manufacturing a single at 36 grams of CO2 equivalent (CO2e), equivalent to driving a car 0.092 miles, versus up to 23 kilograms CO2e—equivalent to 59 miles—for the 96-well approach. This calculation, based on internal lifecycle assessments and the EPA's Equivalencies Calculator, was validated by independent consultants Silinnov and SRI Quality System Registrar. For next-generation sequencing (NGS) target enrichment panels produced in fiscal 2023, Twist reported 180,000 kilograms CO2e total emissions, contrasted with an estimated 470 million kilograms for equivalent output using industry-standard methods benchmarked against Dr. Oligo software from January 2021; the former equates to emissions from 2.4 tanker trucks of annually, versus 6,000 for the latter. The company's 2024 Corporate Responsibility Report marked its first disclosure of Scope 1 emissions at 6.27 metric tons CO2e and Scope 2 at 14,315 metric tons CO2e across U.S. facilities, attributing these primarily to in and operations. Additional initiatives include diverting 24,795 pounds of (e.g., gloves and PPE) from landfills and over 6,000 kilograms of single-use scientific plastics like pipette tip boxes, alongside adopting eco-friendly with 50% recycled content. Twist achieved certification for select facilities in 2024, emphasizing energy-efficient design. These claims have received limited independent beyond the specified validations for gene synthesis footprints, with broader assessments relying on company-internal methodologies and benchmarks. Unlike operational or technological aspects of Twist's that have attracted short-seller , its environmental assertions have not drawn notable or third-party challenges in as of 2025. In the of , while itself poses minimal direct ecological risks due to contained lab processes, downstream applications of synthesized DNA raise separate concerns about release and unintended environmental effects, though these do not pertain to Twist's claims.

Impact and Future Outlook

Contributions to Synthetic Biology

Twist Bioscience pioneered a silicon-based platform for DNA synthesis, departing from traditional phosphoramidite methods by leveraging semiconductor manufacturing techniques to produce custom oligonucleotides at unprecedented scale and reduced cost. This approach etches DNA strands onto silicon chips containing up to 10,000 wells per square centimeter, enabling parallel synthesis of millions of sequences simultaneously with error rates below 1 in 1,000 bases. The technology has democratized access to synthetic DNA, lowering prices to approximately $0.06 per base pair by 2023 and shortening delivery times to as little as 5 business days for genes up to 1,800 base pairs. Key contributions include enabling large-scale genetic library construction essential for and metabolic pathway optimization in workflows. For example, Twist supplied with over 100 million bases of DNA in 2015, comprising 10% of the company's annual needs and accelerating strain engineering for industrial bioproducts like biofuels and flavors. In therapeutic development, the platform supported the synthesis of combinatorial libraries for antibody-drug conjugates, including full () sequences for cancer therapeutics in collaboration with the Synthetic Design Lab. Additionally, Twist facilitated the design and synthesis of 215 novel variants for , advancing engineering by exploring vast sequence spaces unattainable with conventional . Advancements in enzymatic , unveiled in 2022, further expanded capabilities by integrating template-independent methods, achieving longer constructs up to 2,000 bases with fidelity exceeding 99.7%. These innovations have underpinned applications beyond research, such as encoding 100,000 images into bacterial DNA in 2023 and variant libraries for studies. By 2024, Twist's output supported over 1,000 customers annually, including partnerships yielding billions of CDR3 variants for discovery. This has lowered barriers to iterative design-build-test-learn cycles, fostering progress in areas like sustainable materials and while highlighting enzymatic methods' potential to supplant for complex assemblies.

Broader Industry Influence and Applications

Twist Bioscience's semiconductor-based DNA synthesis platform has significantly lowered the cost and increased the throughput of custom DNA production, enabling synthetic biology applications that were previously constrained by traditional phosphoramidite chemistry methods. By integrating millions of nanoscale reaction sites on silicon chips, the company has disrupted the market, as evidenced by a 2015 order from Ginkgo Bioworks for over 100 million base pairs—representing approximately 10% of the global DNA synthesis output at the time—which accelerated large-scale organism engineering projects. This scalability has positioned Twist as a key enabler for high-volume DNA libraries used in antibody discovery and optimization, influencing biotech workflows by reducing turnaround times from weeks to days. In healthcare and pharmaceuticals, Twist's synthetic DNA supports rapid therapeutic development, including generative AI-driven antibody design through collaborations like the 2024 partnership with Absci for novel candidates against undisclosed targets. The platform facilitates libraries for veterinary applications, as expanded in the ongoing Invetx partnership targeting and diseases. Beyond therapeutics, industrial applications span enzyme screening for biocatalysis, via the 2024 bitBiome collaboration producing kits, and broader for chemicals and materials. Agricultural biotechnology benefits from Twist's tools for next-generation sequencing and gene synthesis, addressing challenges in , resistance, and through custom oligo pools and NGS target enrichment. Partnerships such as the renewed 2022 agreement with extend to food and , supporting engineered microbes for sustainable production. Emerging uses include DNA data storage, spun out in May 2025 as Atlas Data Storage with $155 million in funding, highlighting potential for archival applications in data-intensive industries. These advancements have broadened synthetic biology's reach into defense and consumer goods, where customers leverage Twist's output for diverse bio-manufacturing.

Potential Drawbacks and Unresolved Questions

Despite achieving revenue growth, Twist Bioscience reported a net loss of $208.7 million for 2024, a slight widening from $204.6 million in fiscal 2023, driven by elevated expenditures and sales, general, and administrative costs amid capacity expansions. The company generated negative , necessitating ongoing capital raises that dilute shareholder equity, with no clear timeline for consistent profitability beyond targeted adjusted EBITDA by fiscal 2026. Gross margins have risen above 50% in recent quarters through efficiencies and mix shifts, yet analysts note persistent pressures from variable costs in scaling DNA pool and gene synthesis volumes, potentially limiting further expansion if yield inconsistencies persist. Technologically, the silicon-platform's high-throughput advantages are offset by challenges in achieving uniform accuracy for complex, longer-sequence syntheses, where error rates can necessitate additional verification steps, increasing effective costs for customers pursuing therapeutic or industrial applications. Historical production halts, such as the 2021 gene synthesis issue resolved via process refinements, underscore vulnerabilities in scaling bespoke orders without quality lapses. Competitive risks loom from incumbents like Integrated DNA Technologies and emerging enzymatic synthesis approaches, which could erode Twist's cost leadership if they mature faster in fidelity or throughput. Unresolved questions include whether Twist can sustain customer acquisition beyond next-generation sequencing oligo pools—comprising a significant revenue portion—into diversified end-markets like precision medicine, as demand maturation in core segments may cap growth without broader adoption. The platform's reliance on phosphoramidite chemistry, despite innovations, raises doubts about ultimate scalability limits compared to fully novel paradigms, particularly as AI-accelerated amplifies screening demands and potential bottlenecks in . Long-term, the firm's ability to translate R&D investments into defensible amid disputes, such as the ongoing Agilent litigation, remains uncertain, potentially exposing margins to erosion if generics or workarounds proliferate.

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