Thread by @Biotech2k1

Taking a Look at $BLI

The stock has been knocked down 80% from its highs off of the short reports. I did my own research, and I don't find any credibility to those claims by the shorts.

1/ The company looks cheaply valued at only $1.3 billion market cap with over $123 million in projected 2022 revenues and $197 cash on the books.

2/ Berkley Lights makes machines that automate and simply the lab process. They have 3 machines with the Beacon, the Lighting and the Culture Station. The main machine is the Beacon which uses chip built with thousands of pens.

3/ They will fill these pens with cells. Then the machine can analyze all these cells to find the perfect cells that meet all the desired criteria.

4/ This system can be used in Antibody discovery, Cell Therapies and Synthetic biology. They offer a array of chips and reagent kits to preform all kinds of cell analysis. They can make hybridoma for monoclonal antibodies at 10x the capacity and reduce the time by 90%.

5/ The cost of the machines is expensive so they offer different options to companies. The companies can purchase that machines and kits to run the machine. They can do a subscription which they rent the machine quarterly then buy all the kits and reagents.

6/ The last option is they can use the Berkley Light foundry to do their work and do a collaboration that can lead to $BLI getting some of the downstream economics.

7/ Someday this could be the Digital Biology company of the future. I think the tech is there for these machines to automate and simplify the lab requirements of many companies.

8/ As more companies get the opportunity to see what they can do, I think they will eventually become one of the major lab tech companies of the future. The ability of them to reduce time and work with increased accuracy could put these machines in ever lab in 10 or 20 years.

9/ I know they said the average use per machine was $250,000 in chips and reagents. They can generate a considerable amount of revenue even if they don't get the capital spending of the company buying the machine.

10/ They can lease the machines to these companies and make money off the reagents and technical support. As the company grows, they will develop new kits and workflows to give these machines more functions.

11/ They also have the Lightning which is an assay machine. I don't know a lot about this machine yet. They also have a culture station which allows for the culture of cells without taking away use of the Beacon machine.

12/ The one risk I saw was they had a patent dispute with AbCallera. I don't know what kind of impact if any that could have on the company if they lost that case.