Avid Bioservices Inc (CDMO)

[eb0783]

AVID II was 6 months late and while I have no problem with that given it was a brand new innovative technology. I therefor think that AVID II experience allows to set-up AVID III in less time and avoiding whatever it was that delayed them.

I agree with you that the next facility, which in most ways is a cookie-cutter design of Avid II, should go in quicker. Also like you and most of us, we are most concerned with when it will produce reportable revenues. Avid II was announced in December of 2014, I believe. Construction started sometime during early 1Q15. I and two others toured the facility in October 2015 and it was running test batches. We toured it again two weeks ago and the tour leader told us it had been in commercial production since the previous quarter. Since they report quarterly and since they had some 3rd party testing backlog/issues this last quarter, it has been over 18months and we still have not seen $$ reported from the new facility yet. ....NOW Avid III has not begun construction yet. So I am at a loss as to when it will contribute revenue.

So I am not worried about AVID III implementation time table but about the communication of when it is up and running for paid for activities. Running PAID FOR test batches that are specific BEFORE start-up of sales-grade product for 3rd party customers DO QUALIFY to me as production from an AVID perspective because the customer pays for it.