Avid Bioservices Inc (CDMO)

[Protector]

north, with Dart now having a position above 10% of PPHM the option for any party to acquire 90% of PPHM to, under Delaware law, and do a short term merger is impossible without Dart and/or BlackRock. I know you didn't say anyone was going to do that my reply is more a statement of observation.

Then about the 16$. I wonder if MEDX's BoD/Management could asses the value of what is today Opdivo/Yervoy at that time (2009) as well as PPHM can asses the value of Bavituximab today.

1) PPHM had the CHEMO combo's (and was quite unique in it) while CHEMO was still the undisputed king and while it didn't look that was about to change in the short run. MEDX had no such market.

2) PPHM has pre-clinical and other I-O tests done at other places and with Yervoy+Bavi human data showing it the role it can play.

3) Otherwise then MEDX, PPHM now knows (since ASCO 2013) that I-O is BIG and the future of cancer treatment at the periment of chemo. MEDX didn't have a clue if I-O was ever going to make it (in 2009) and if so if it would be its anitibodies that would play a major role.

And therefore I think that you are providing an excelent example of a situation where a BoD/management did indeed accept 16$ per share, and while that seems ridiculous now, which was a good price at the time where BMY took the risk of the higher investment and the possibility this would go nowhere. BMY made the correct choice, they really took the risk and they won big time.

With Bavituximab one may want to acquire it while WE THE SHAREHOLDERS took all the risk and paid it with DILUTION (because PPHM is ATM and special offering funded and only now starts to have meaningful revenue that very quickly will be sufficient to support normal operations with Avid).

So this dilution must be offset and MAY NOT work against us and if the potential of what we sponsored is valued correctly then it will not. For each dilution there is an increase in platform value. Even SUNRISE adds to that value because every interesting party will want to know what BAVI really did compare with the more valuable long term statistic rather then against a one time abnormally outperforming control arm.

And that is why we need the poison pill because if you don't follow this stock then 5$ may look like a super price for PPHM that quotes 0.40$ and is STRONGLY kept in a waiting channel.

I am sure that our BoD/management is VERY aware about the astronomical value of Bavituximab and will not let the artificially pressed down PPS, that is even lower then the assets value of PPHM, clutter their decisions. And I am equally sure that they bridged already whatever period they expect it to take to come to some money deal.