Avid Bioservices Inc (CDMO)

[Protector]

BioBS2012, if the AF theroy looks 4 months prior to data results to the Market Capital of PPHM then that would assume that:

- one knows when the for months periods starts and hence has a date for the announcement. And that can vary and is very often not even know, just an expectation. PPHM itself has currently 2 trials late/rescheduled - ok ISTs and PIs included but still.

- It is a CONVENIENT rule because we have seen that for positive results the market manipulates you DOWN. Look 4 months before the Sept 7th 2012 presentation. Of course we want everyone to thing THEN that 2nd ln NSCL will fail and sell. Let the cheapies come. Ole.

- And now that we know CRO's are not clean to the BONE it becomes of course obvious why one would want this in a window.

But lets assume AF has only been talking about PIII's, because if it would be extended to PIq and PIIs then technically the rule would break for ALL such <300Mil$ companies that ever would make it to PIII, wouldn't it. Then still the Market Capital will in NO WAY influence the outcome of actions that result from treatment that in many cases happened more then a YEAR before. So AFs rule CAN NEVER have been aimed at FAILURE due to data outcome of the trial if the trail is, in our case, unblinded.

This rule probably may have some accuracy when it comes to the ability to being able to keep the lights on till end of trial without going BK, or without being forced to finance through partnering, or without falling in the LOAN trap.

And if there would be such relation it will be a gradient because 300Mil$ is in all cases based on an analytic snap-shot, possibly adjusted some.

But there is no way that someone can convince me that the market cap changes the clinical outcome of treatments that were done in the past. Which brings the question back to : Can PPHM been brought in a position where it CANNOT finish SUNRISE for financial reasons?

And then I say, probably not if they don't do plenty of other stuff, or neither if they do plenty of other stuff and get the 175Mil shelf.