What happened
Twist Bioscience agreed to supply antibody characterization data services to Eli Lilly's AI-driven TuneLab drug discovery platform, and its stock rose 7.1%.
Why it matters
The agreement ties Twist Bioscience to AI drug discovery, and analysts see a large AI opportunity in its antibody data business.
What to watch
The stock's momentum hinges on whether the rally holds, with $155–157 as first support. Leerink raised its price target to $160 from $120.
WHO IT HITSActive traders and life-science tools investors are watching Twist Bioscience as a new AI-enablement play; long-term holders should note the company remains unprofitable with negative free cash flow.
Summaries like this, in your inbox every morning.
Twist Bioscience's deal with Eli Lilly's TuneLab platform marks a step into AI-driven drug discovery. The agreement lets Lilly use Twist's antibody characterization data in its AI models. Analysts responded positively: Leerink raised its price target to $160, and UBS initiated coverage with a $144 target. The stock rose 7.1% as a result.
The move comes as Twist Bioscience trades at high multiples—about 24x sales—despite being unprofitable. Its EBIT margin is -31.8%, and free cash flow was -$8.65M last quarter. The company's revenue growth has decelerated from a 5-year 28% pace to a 3-year CAGR of nearly 10%. Management confirmed that AI-designed mini-binder work for Anthropic is real and likely already reflected in its 2027 orders view, limiting near-term upside from that project alone.
Investors are betting that Twist's antibody data capabilities will make it a key AI-enablement asset in life science tools. The bullish case hinges on whether the company can sustain this momentum and eventually translate AI partnerships into profitability. For now, it remains a high-risk, story-driven stock.
For example, today's edition would include:
AI-summarized, only the topics you pick — one digest a day via Email, Slack, or Discord.
Free · 30 seconds with Google · unsubscribe anytimeWhat is AIToday? →
Ask AI anything about this article. Q&As are published on this page for other readers too.
Citi forecasts HBM bit demand rising 62% to 75.2 billion gigabits in 2027 and another 69% to 127.0 billion gig…
Lam Research posted record fiscal 2026 results with higher margin targets and richer dividends
RTX says AI-enabled borescoping has cut overall engine inspection time by more than 30%, with report generatio…
In fiscal 2026, Aehr posted $50.0 million revenue (down 15.2%), a $7.1 million net loss, and negative $5.4 mil…
Yahoo Finance compared Nvidia and Micron and picked Micron as the better AI stock for 2027, citing Micron's ma…
Berenberg lifted its Lam Research price target to $420, flagging wafer fab equipment spending rising toward $1…
