Avid Bioservices Inc (CDMO)

[sulaco]

KT, EBITDA is earnings BEFORE interest taxes depreciation and amortization, NOT after.

Your numbers are wrong. So is saying Avid is worth just steel tanks, setup, and design with single use state of the art tech.

No, no, no. Avid has Federal approval and a clean Federal audit record. THAT is where the value is. The CDMO space is very valuable and growing rapidly. You re right that EBITDA is not based on sales, but your numbers are not in line with EBITDA. Your numbers are NET NET earnings.

Best, Joe

Support Avid production capability while seeking new orders. If current Avid capacity of $100 million+ sales turns EBITDA of $33 million (a one third margin), assigning that 15 to 20 multiplier for shareholder valuation of $525 to $700 million. Figuring about 50 million shares, that is support for a $10 to $14 pps, which is a good reason for shareholders to support some carrying cost for production staff until sales can be realized. However, if it takes more than a year to fill the order docket, carrying costs need to be carefully monitored and staff size managed accordingly. Yet, which Pharma would give an order if production was not "ready to go" vs. the order must wait while Avid staffs up?