Avid Bioservices Inc (CDMO)

[Protector]

cheynew, that is actually strange.

JM names JB in his testimony and from the provided dates PPHM and CSM both knew in SEPT 2012 that:

- the trial was tempered with AT PURPOSE
- the trial was tempered with by JB
- the tempering was a dose switching involving placebo and bavituximab

The FDA has a specific department investigating tempering with clinical trials. In that aspect they have powers like other investigating bodies such as the FBI and the SEC that also has such department for SEC fraud. The 3 work even together.

So, what must an investor assume (because assuming is all he can do) based on the current available information.

1) PPHM and/or CSM are hiding such tempering from the investigational bodies? I don't think so. IR issued at least two private message to posters on this board saying a 3rd party investigation was going on (messages were posted on here).

2) If we assume that the information in Masten's and Shan's court testimony is correct and dates from the mentioned period then we may assume those investigational bodies have received this information. We know, also from PPHM IR, that JB has layered up ("She has her lawyers, we have our legal"). So she has certainly not be left alone.

3) We know PPHM had/has NO DIRECT story towards JB. CSM has and possible victims, if any, from her tempering may have too (via a prosecutor in that case) but PPHM, as far as I see it, hasn't in a direct line because CSM is in the middle and JB could say she was ordered by her hierarchy to do so.

4) So, if JB lawyered up then she must have done so because either CSM or an official investigational body has driven her to do so. I think CSM sits in a bad position. Any lawsuit against JB would attract negative attention and could lead to 'unwanted' disclosures that may either intervene with possible settlements with PPHM if that would still be an option or damage their case in the PPHM vs CSM lawsuit on the dose switching.

So, how could JB be named in the testimonies, testimonies about information of the Sept 2012 period BUT made at dates FAR PAST the Sept 2012 events, and in all that period not be indited or arrested? The answer is very simple: Either JB didn't do anything wrong and both PPHM and CSM shift the blame into her basket (JM verified with Angela B who said she did not understand why JB did it so both companies, through their employees, believe JB did it) or else some kind of deal has been made.

And if some kind of deal is made then we know how it works if an investigational body is involved (because, and I may be wrong, I don't think there is any deal a private company can make with JB that would even be the beginning of satisfactory to make good). With gov's it will be "You give us a bigger fish..." OR "You tell us why and who is behind it..." OR we prosecute and you possibly go to jail.

Now I think that in the option that JB didn't do anything there could/should be an upcoming problem with Jeff and Angela, wouldn't there.
If they lied then why? And in all cases PPHM BoD/Management wouldn't be able to leave it at that. But I think they did not lie, neither did BoD/Managment. I think it is not completely in their hands and that that, among others such as the pending class action, explains the lingering and chain of last minute actions (last minute serving, last minute filing, last minute replies filing, date negotiations with the Judge, etc). There must be something else going on of which they do not control the timing or possibly don't even control the fact that that option/path was/is visited.


We haven't heard the last about JB because if we would then we'd have grounds for a new class action saying that PPHM's BoD/management (CEO SK, because it will be his head) was/is aware of intentional tempering with a PPHM clinical trial, that PPHM investigated and found what was done and who did it, and that they had confirmation from CSM about that, and that they didn't in anyway inform the authorities and/or certainly didn't PR such important event given this happened to the most important clinical trial suite (the 2nd ln NSCLC) in the history of the company and given it would certainly help restoring lost credibility and kill all kinds of rumours.

So something else must be going on because SK, as a CEO, who is doing a great job in moving things forward isn't going to stick his personal neck out for JB, is he?