Short seller Scorpion Capital said Wednesday that the link between Twist Biosciences and Anthropic should not be viewed as a material AI-driven drug-discovery partnership, disputing characterizations by some market participants.
In public comments, Scorpion pointed to Anthropic’s blog post, which Scorpion says refers to Twist as an "independent contract research organization" rather than a technology partner. The short seller also cited language in Anthropic’s post that it used its Claude model to design proteins that achieved a 22% to 35% success rate in binding their intended targets, compared with a typical 10% to 15% hit rate cited for standard protein-design campaigns.
Scorpion Capital said that improvement in hit rates implies researchers would need to order roughly half as many physical constructs to yield a single successful binder, reducing the number of constructs required per hit.
The short seller further noted that after Anthropic’s post was published, Twist filed an 8-K under Item 7.01 - Regulation FD, rather than under Item 1.01 - Entry Into A Material Definitive Agreement, a distinction Scorpion interprets as informative about the nature of the relationship.
Market analysts offered differing descriptions. TD Cowen analyst Brendan Smith identified Anthropic as a Twist customer on Tuesday and said that characterization supports the quality and durability of AI-driven demand for Twist. In a subsequent note, Piper Sandler analyst David Westenberg described the two companies as having a partnership.
Scorpion emphasized that Anthropic’s blog portrays Twist as an "external evaluator" that supplied wet-lab production and testing services, according to the short seller’s reading of the post.
Scorpion Capital also disclosed that it maintains a short position in Twist Biosciences.
Context and implications
The dispute revolves around how the connection between a laboratory services company and an AI developer should be characterized in public statements and regulatory filings. Scorpion Capital’s argument focuses on language used by Anthropic and on the specific item under which Twist reported the matter in its 8-K.
Analysts who have labeled Anthropic a customer of Twist or described the relationship as a partnership differ from Scorpion’s interpretation, illustrating a divergence in market read-throughs of the same public information.
Disclosure
The short seller disclosed it holds a short position in Twist Biosciences.