Avid Bioservices Inc (CDMO)

[Protector]

Avid -> Oncology a GOOD deal or not?

You must READ the PR. It says :
- 8Mil$ up-front (commitment)
- 95Mil$ milestones (does Bavi& bata bodies what is says it does)
- Mid Ten (assume 15%) Commercialization Fee
- All costs, incl. IP for Oncology
- Contracts for Avid.

15% commercialization for having NO COST, that is HUGE!!!!

That means :
Sales price - Cost = Profit and then 15% of Profit for PPHM/CDMO

- no risk for CDM if it doesn't work (should please all those that said Avid doesn't work)
- no investment in sales & marketing, publicity, networks, etc. Just cash flowing in.
- We stay connected with PtdSer targeting through commercialization income and production income.

OUR RISK:

Our risk is that Oncology is a SETUP and that if it fails the assets do not return to PPHM. It is a LOW capital entity with a BROKEN web-site that looks VERY unprofessional.

New Web-Site 12-31-2017

Under terms of the agreement, Avid will receive an aggregate of $8 million in upfront payments from Oncologie paid over a period of six months from the execution date of the agreement and will be eligible to receive up to $95 million in development, regulatory and commercialization milestones. Oncologie will be responsible for all future research, development and commercialization of bavituximab, and related intellectual property costs, with Avid receiving royalties on net sales that are upward tiering into the mid-teens. As part of the deal, Oncologie will also enter into an agreement with Avid for future contract development and manufacturing activities in support of bavituximab. Roth Capital Partners acted as financial advisor to Avid in this transaction, rendering a Fairness Opinion to its board of directors.

source

The red part is to good to be true UNLESS again the profits are kept low by Oncology Inc who sets up a system that the profits are wheeled in in another entity.

Oncology could license the IP to another company and that income would be the commercialization revenue. The REAL margin, mark up on treatement cost, would end up in other pockets.

CONCLUSION: This smells like a Set-up.

CEO

AIMO