Genomics Thread #1

Before diving into companies, let's make sure we understand some terms.

Spoiler: there's a WHOLE lot to learn...
1/ It starts with DNA (deoxyribonucleic acid) or your "genetic code."

It's a double-helix structure that is made up of chemical base-pairs (A pairs with T via 2 hydrogen bonds and C pairs with G via 3 hydrogen bonds).
2/ DNA sits in the nuclei of your cells.

How many cells do you have?

Roughly 37 trillion.

And our cells aren't static. They are actually dividing constantly.

How often?

Nearly 2 trillion times per day.
3/ And in each one of those cells, exists 23 pairs of chromosomes (22 "autosomes" and 1 pair of sex chromosomes).

A chromosome is essentially a tightly wound strand of DNA.

And the entirety of the base pair sequence in each piece of DNA is called the genome.
4/ Guess how many base pairs in each strand of DNA?

Roughly 3 billion.

To be clear, genes are made up of DNA. There are between 20-30k unique genes.

And for each gene, up to 10 proteins can be traced back to that gene, resulting in anywhere from 80-400k total proteins.
5/ Ok, let's recap quickly:

There are about 37 trillion cells in our body that make-up everything. They divide 2 trillion times per day to grow, regenerate, etc.

In each cell is a nucleus with chromosomes.
6/ There are 23 pairs of chromosomes, consisting of your DNA, or the instruction code for protein creation that regulates all the functions in your body.

You can think of DNA as the mastermind behind the scenes, nestled nicely in the form of chromosomes in each cell's nucleus.
7/ When we drilled deeper, there are unique genes within each chromosome.

And then, of course, our genes carry the information that makes up our traits.

So these tiny segments of DNA (genes) tell proteins what to do and that affects our entire body at all times.
8/ Phew! That was a lot.

And we haven't even talked about RNA and the actual process of going from DNA to actual protein creation.

Step 1: RNA copies DNA in a process called transcription

Step 2: RNA moves out of the nucleus to the ribosome which is called translation
9/ Step 3: tRNA brings amino acids to the mRNA/ribosome combination, creating a chain, otherwise called a protein.

An example of a protein would be something like hemoglobin which carries oxygen in the blood.
End/ There are all sorts of details but that's the gist!

From smallest to biggest:

Genes
⬇️
DNA
⬇️
Chromosomes
⬇️
Nucleus
⬇️
Protein
⬇️
Cell
⬇️
Skin/Muscle, etc.
⬇️
You!

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More from @investing_city

28 Jan
Genomics Thread #2

Let's talk about gene sequencing...
1/ The first genome was sequenced in 1977 by Fred Sanger of a bacteriophage.

The first human genome wasn't sequenced until 2003 after 13 years of research through the Human Genome Project.

It took $3 billion (apparently $1 for each base pair 😅)
2/ In the past two decades, the cost of sequencing DNA has declined at an astounding rate.

From $3 billion with the Human Genome Project to well under $1,000 today. Image
Read 10 tweets
26 Jan
Some slides I thought were really interesting from @ARKInvest's recent 2021 Big Ideas presentation...

Source: research.ark-invest.com/hubfs/1_Downlo…
1/ "Deep learning could create more economic value than the internet did"
2/ Freemium widens the funnel
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15 Jan
Following up on how GoodRx fits into this ecosystem...

continued [THREAD] ⬇️
1/ If you haven't already read through the prescription drug value chain, I'll give a super brief breakdown.

Distribution: Manufacturers -> Wholesalers -> Pharmacies

Payment: Employer -> Health insurance companies -> PBMs -> Distribution points
2/ GoodRx sits in an interesting spot, benefitting from the opaque industry and the PBMs specifically.

To be clear, GoodRx doesn't work with insurance.

It works if you're paying out-of-pocket.
Read 17 tweets
14 Jan
Took the afternoon to understand the prescription drug market a little better.

Here are some ramblings on the value chain...

[THREAD] ⬇️
1/ It starts with the manufacturer of the drug. These are the pharmaceutical companies like Pfizer, Abbott Labs, AbbVie, Merck, GSK, etc.

Top 5 by revenue (in billions):

Johnson & Johnson – $56.1
Pfizer – $51.8
Roche – $49.2
Novartis – $47.5
Merck & Co. – $46.8
2/ As an aside, we're talking prescriptions which are usually chemical-based rather than organism-based. The latter are often researched by biotechs instead of pharma.

But pharma companies sometimes don't even manufacture the drugs themselves...
Read 23 tweets
1 Jan
My 10 most popular tweets from 2020

Happy New Year everybody!

[THREAD] ⬇️
Read 12 tweets
10 Dec 20
1/

I'm not sure about this C3.ai one.

Just because it got the "AI" ticker doesn't mean it should be up 124%!

The last 4 quarters (in mils):
$41.0
$41.6
$40.5
$41.3

Pretty much 0 sequential growth in almost one year...
2/

Three customers (Engie, Caterpillar, and Baker Hughes) make up 44% of revenue.

Very high customer concentration.

In fact, there are only 64 total customers.

These are some ENTERPRISE deals. Long sales cycles.
3/

Each of the top 3 customers makes up more than 10% of revenue.

If we split the 44% by 3 ways, the average contract value for these customers is $24 million.

The ACV for the remaining 61 customers is $1.5 million.
Read 9 tweets

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