Today, we will be diving into Moderna. Founded in 2010, Moderna and its innovative RNA platform made headlines after developing one of the first COVID vaccines. We treated this Breakdown slightly different than our other episodes. I’m joined today by two guests. First, I am joined by Jason Kelly, CEO of Gingko Bioworks. He gives us a primer on the biotech industry, genetic modification, and how Moderna’s platform represents a new breakthrough in the industry. Then, I talk to Matthew Harrison, a biotech analyst at Morgan Stanley. We will cover what differentiates Moderna’s business model, how Moderna’s science could lead to faster and higher efficacy drug development, and key takeaways for investors and operators. I hope you enjoy this Breakdown of Moderna.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes - Part 1: Jason Kelly [00:02:31] - [First question] - What is a biotech company? [00:03:50] - Defining Moderna as a company in the biotech space [00:05:15] - Bridging the gap between biotech and genentech [00:06:02] - Overview of the history of learning to program cells [00:07:46] - Big milestones from the discovery to the human genome project [00:10:03] - Technical process and tool of how one modifies and copies genes [00:11:45] - The scale and tools of modern DNA design [00:14:05] - What the Moderna vaccine is and how it works [00:17:24] - The first engineered drug of its kind  [00:18:24] - Other areas where synthetic biology appears in everyday life [00:22:19] - How many sectors this type of technology will disrupt [00:23:32] - The history of Moderna and how they came to be [00:24:41] - What problem Moderna tries to solve and how they approach it [00:27:11] - Unique deal components in therapeutics and the FDA [00:29:06] - Key factors that will make Moderna a dominant player in the near future  [00:30:01] - How Genentech became as big as they did  [00:30:53] - Competitive and compounded advantages for biotech companies [00:32:09] - Lessons for investors and entrepreneurs in studying Moderna’s story   Show Notes - Part 2: Matthew Harrison  [00:34:10] - What is Moderna and how it got started [00:36:10] - Typical route taken for a drug maker and how Moderna is different [00:37:16] - What separates Moderna from others in the biotech space today [00:39:12] - The role software and technology has played a role in Moderna’s success [00:41:42] - Cementing their position through breakthroughs and capitalizing on them  [00:42:58] - How Moderna generates their revenue  [00:44:45] - Overview of cost of sales, expense buckets and gross margin [00:46:20] - Factors involved in how one valuates a biotech company [00:47:15] - How many drugs are in Moderna’s pipeline compared to others [00:51:26] - Risks of drug development and their market potential [00:54:01] - Internal operations of drug development and what separates Moderna [00:57:17] - Comparing Moderna’s mRNA to others on the market  [00:59:44] - High level breakdown of pharmaceutical R&D [01:01:33] - Other P&L and financial components that arise given the nature of biotech  [01:03:09] - Contrast between the Moderna and Pfizer vaccine [01:04:18] - What Moderna will have to get right in order to become the next Pfizer  [01:05:38] - What Moderna would have to get wrong to limit their growth [01:07:24] - Company culture and the importance of management [01:08:06] - Lessons for builders and entrepreneurs in studying Moderna’s story

Today, we will be breaking down Invisalign. Founded in 1997, Invisalign pioneered clear aligners as an alternative to metal braces. Today, Invisalign generates over $2bn of revenue and accounts for roughly 20% of the orthodontic market.   To break down Invisalign, I am joined by Nick Greenfield, CEO of Candid. Nick co-founded Candid in 2017 as an e-commerce solution to teeth aligners. Candid now offers a broad range of clear aligners and teeth whitening solutions across retail, e-commerce, and the professional market.   Nick's experience in the industry makes him an ideal person to explore Invisalign. We dive deep into the origin of the business, the unique relationship between Invisalign and orthodontists, the economics of orthodontics, and how Invisalign successfully used its patents to maintain its lead in the clear aligner industry.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:43] - [First question] - Overview of Align Technologies and their scale [00:03:31] - What Invisalign is and the problem it solves [00:04:43] - The footprint Invisalign has in the dental industry [00:08:40] - Defining orthodontics and the size of the market [00:09:49] - Why market penetration may double over the coming years [00:14:42] - What the market was missing in the 90s and allowed Invisalign to arise [00:16:20] - Unit economics across the value chain of orthodontics [00:19:40] - Economics of an entire practice built on Invisalign [00:20:34] - How they came to dominate and cement their market position [00:22:44] - Vertical integration and other ways held a majority in the clear liner space [00:25:02] - Branding, distribution and further means of competitive advantage [00:27:05] - Why not move further up the value chain and buy orthodontic businesses [00:28:40] - Invisalign’s P&L in gross margin and major item categories [00:31:49] - What share of chair means and why it’s important [00:32:56] - How many cases can currently be handled by clear alignment trays [00:34:52] - Orthodontists will remain employed once aligners achieve widespread adoption  [00:37:16] - Driving factors for Invisalign doubling over the next five to ten years [00:39:03] - China’s push for training orthodontists and clear aligner adoption [00:39:50] - Other reasons Invalisgn may double their market cap over the coming years [00:40:26] - Competitors and disruptors that may hinder their growth [00:42:01] - Joy dichotomy between patients and businesses [00:43:40] - What happened in 2017, how it changed the marketplace, and the road ahead [00:45:08] - Market share and penetration in today’s landscape [00:46:23] - An analog that can be used to explain Invisalign writ large [00:47:31] - What could revert Invisalign’s growth and market share [00:50:22] - uLab and orthodontists making aligners themselves  [00:51:53] - Other potential threats to Invisalign [00:53:26] - Patenting your IP and gaining an advantage in healthcare [00:55:28] - Lessons for builders and entrepreneurs from the Invisalign story [00:56:39] - Lessons for investors watching Invisalign’s growth over the years [00:58:07] - Where you can learn more; dentaltown Podcasts