Avid Bioservices Inc (CDMO)

[Protector]

Frustrated, without implying ANYTHING else I just want to say this:

In the case of PPHM we had NO public offer as did Pfizer with AZ. AZ could react because, possibly and very probably outside its will, Pfizer announced it.

In the case of PPHM we are for sure not talking about any such public offer, at the most an in chambers one covered by legal terms among which certainly non-disclosure to avoid bidding wars.

The interest of PPHM in that area is opposite to the interest of the bidder. Pfizer probably made an offer of which they think AZ share holders cannot refuse or will find it interesting (possibly without understanding the real potential Pfizer is after). AZ management has done what it is there to do, namely evaluate the offer versus potential value and drive any offering close to the real value. Only them can make that assessment.

In that this will be kind of the SAME for PPHM, no matter what an offer is made. I am almost sure that the BEST scientific posters on this board will not really dare to make a statement as to the potential of Bavituximab and as to the turn-around of that potential into market share and related revenue of many years.

That is where ALL PPHM offering shoes will NOT FIT because all potentially interested parties will talk down potential and PPHM will on the other hand explore every corner of it.

As a result I don't think PPHM will get any acquisition offers any more as BP's probably had it with them by now. The road will be one of fragmentation based on geographical-medical discipline-disease.

Oncology, Viral, Inflammatory, Digital Imagine etc are all disciplines that have less or more specialized players. We also see more specialisation lately (eg: GSK - Novartis Oncology/Vaccine exchange) in these disciplines by BPs.

And for disease it is clear that PPHM will want the combination with Chemo/Radio/Immuno depending on what drug or current SOC they work best with for, say, Lung, Liver, Breast and the many others.

Finally geographically will be needed too because the problems and intricacies of clinical trials, commercialisation, pricing, treatment network contacts and relations, cultural and language difference etc will benefit from local partners that know their markets and have all the contacts and networking in place.

I therefore think we can, certainly for now, step away from some general acquisition scenario and watch for fragmented smaller partnerships or as a biggest entity possibly a bavi partial pipeline buyout (say Bavi+Chemo or Bavi+Radio or Bavi+Immo) excluding BetaBodies for which PPHM clearly has some plans.
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