Avid Bioservices Inc (CDMO)

[Protector]

peregr, what i am going to reply now is an OPINION not something that is FACT.

1) why 175m shares on this ballot and
2) for what purpose

I have been thinking about that one (well I may have been over thinking the complete #3 since RRDog's post at a point where I could move from YES to NO and back 3 times a day). I came to the conclusion that this has to do with something PPHM is doing and which SK announced would INCREASE effort on: More collaborations/partnerships.

We know AstraZeneca is going to take the BULK cost of the trial, the anti-PD-L1 substance for both arms of the trial estimated based on Merck/BMY pricing between 120-150K$ per patients). We know Bavituximab for the Bavi arm only comes from Avid. And placebo (if it would be placebo controlled) isn't a big deal either. So the cost for PPHM will be the treatment and all the admin that such a clinical trial brings with it (e.g. paying for a CRO, randomizing, unblinding, ...).

So if PPHM wants to engage with MANY such collaborations/partnerships then they will need to EACH time sponsor that. Otherwise then some articles in the Fool make believe, PPHM is not at all working on the clinical trial with BMY in a way as with AZ. That trial (on few patients but still) will cost more. Yervoy on the go, Opdivo on the coming.

So PPHM will need the funds over the coming 36 months as more and more of these deals get signed. We have been wining that their were no collaborations/partnerships and know that they are there and PPHM signs deals that keep them in control of IP/Pipelines we should wine that it costs cash to make such deals.

I have been posting the past day that PPHM could ask us for 50Mil shares each year. But that restricts their flexibility a lot. So in the end I say give them the room to manoeuvre and don't try to steer the ship from the shore. The best steersman seldom stands ashore.