Tuesday, December 11, 2018 3:48:17 PM
12-10-18 Qtly CC-Transcript, PR(Q2FY19/qe10-31-18), Avid Revs History Table
*Revs Guidance (FY’19 fye 4-30-19): $51-55mm. 10-31-18 Backlog=$36M
*Cash: 10-31-18: $32.7mm
*As of Dec 3, 2018: 56,067,867 shares o/s.
*10Q/10-31-18 iss. 12-10-18: https://tinyurl.com/y8boxjys
*Avid Total Revs May03-Oct18: $318.3mm
*Avid’s website: https://avidbio.com
This large post has 4 sections:
I. 12-10-18 Qtly. Earnings Conf. Call TRANSCRIPT (FY19/Q2 q/e 10-31-18)
II. 12-10-18 CDMO Press Release: Q2/FY19 Earnings & Developments
IV. Updated Table of Avid Revenues By Quarter (May’06-Current)
III. Updated O/S Shares History Table – 2006-curr.
…Recall: Avid’s FY runs May-Apr, so FY’19 = May’18-Apr’19.
((( Orig. transcript from SeekingAlpha.com [https://tinyurl.com/y9de6ol4 ] with numerous corrections made. )))
Link to webcast replay: http://ir.avidbio.com/events-and-presentations => https://edge.media-server.com/m6/p/5gs2g7b5
TRANSCRIPT… 12-10-18 FY’19/Q2 Earnings Conf. Call (q/e 10-31-18) (Lias/Hart/Kinjerski)
WELCOME & FWD-LOOKING STATEMENTS: Tim Brons, Vida Strategic Partners (IR)
ROGER LIAS (CEO) – OPENING COMMENTS:
Thank you, Tim, and thanks to all of you who’ve dialed in, who are participating today via the webcast. Q2 was very important for Avid and a successful one, as we continued to execute the plan and build the foundation needed for significant future growth in an exciting and dynamic market space. While the period may have seemed quiet from the outside, I can assure you that it was quite the opposite. During the quarter, we made significant progress in positioning the company for strong growth and transition to profitability. We’ve continued process development, laboratory expansion and upgrades and executed the most comprehensive maintenance overhaul in the company’s history. While these vital improvements were being made, we continued to execute existing projects in both process development and manufacturing according to plan and have progressed and importantly, expanded current client programs. The focus of our process development team on timely execution of current revenue-generating customer projects limited our ability to onboard any significant new projects during the quarter, though the expansion and improvements being implemented in this area now allow us to advance numerous ongoing discussions with new customers, and Tracy will provide an update on progress in this area and her discussion of our business operations. In addition to customer discussions, we’re also exploring other potentially beneficial collaborations with highly qualified players in the biologics manufacturing arena. As these activities have been progressing, we’ve been diligently managing our cash in order to position Avid Bioservices to transition to cash generation and positive EBITDA. As mentioned during our Q1 call, the precise point at which we hit these important milestones is to some extent, dependent on issues that are out of our direct control, such as scientific and technical progress and the scheduling of existing client programs. Given the improving visibility that we have today, however, we’re very pleased with the steady progress we continue to make towards these goals. I’ll provide more details on all of these matters, including the maintenance overhaul and the enhancement of the process development capabilities following the review of financial results from Dan. So with that, I’ll turn it over to him to provide a financial overview.
DANIEL HART (CFO) – OPENING COMMENTS:
Thanks, Roger. Before I begin, I’d like to recommend that everyone participating refer to Avid’s 10-Q filing [ https://tinyurl.com/y8boxjys ] which we filed today for additional details. I’ll now discuss our financial results from continuing operations for Q2 ended Oct. 31, 2018, starting with revenue. As a reminder, Avid has provided revenue guidance for the full FY2019 of $51-55 million under the ASC 606 revenue recognition standard and today we are reaffirming this goal. We remain confident in our ability to meet this guidance despite a decline in revenues during Q2/FY2019, as compared to the prior year period. Specifically, Avid recognized revenue of $10.2 million, a decrease of 20%, as compared to $12.8 million in Q2 of the prior year. Our current period revenues were impacted by our planned sequential shutdown of both Franklin & Myford manufacturing facilities that occurred during the quarter in order to conduct broad scale and significant overhaul maintenance and upgrades. During this period, manufacturing was halted for several weeks creating idle capacity and a decline in revenues compared to the same prior year period. While these shutdowns obviously limited revenue- opportunity during the quarter, they are critical to maintaining regulatory compliance and the highest standards for manufacturing. All reputable biologic manufacturers, including CDMOs, conduct such maintenance programs on an annual basis. Roger will give more detail as to the specifics of the maintenance overhaul following my review.
For the 6 months ended Oct. 31, 2018, revenues were $22.8 million, a 43% decrease, as compared to revenues of $39.9 million during the prior year period. This decrease was primarily attributed to a few key factors, including the aforementioned shutdown and maintenance in Q2, the previously discussed reduction and requirement for materials by commercial clients, and the fact this year represents our transition year to a dedicated CDMO. On a positive note, each of these factors will immediately contribute to new growth and increase to future revenue. Supporting our revenue goal is our backlog, which as of Oct. 31, 2018 was $36 million, the majority of which we expect to recognize in FY2019. Gross margin for Q2 was a positive 3.3%, a significant increase compared to a negative gross margin of 27.1% in the prior year period. Idle capacity costs of $2.9 million during Q2/FY2019 negatively impacted gross margin by 29 percentage points. The increase in gross profit for the quarter was primarily attributed to product mix, resulting in an improved overhead efficiencies, combined with a decrease in idle capacity cost. Gross margin for the 6 mos. ended October 31, 2018 was 6.7%, a 16% decrease compared to the 8% in the prior year period. This decrease was primarily attributed to the variability of product cost, offset by a favorable reduction in idle capacity cost. It was gratifying to see our margins improve during Q2, and they would have been further improved had we not incurred additional idle capacity due to the maintenance overhaul. As we’ve stated previously, given the fixed costs associated with highly regulated biologics manufacturing under current good manufacturing practices, margins will continue to be impacted until capacity utilization is increased. To this end, we continue an aggressive effort to both expand our customer base and extend current client projects to increase our backlog and enhance capacity utilization.
Turning now to operating expenses. During the prior year quarter ended October 2017, we incurred charges of $1.6 million directly related to a restructuring plan we implemented in August of 2017. For more information on the restructuring, please refer to our annual report on Form 10-K for the year ended April 30, 2018. The remaining discussion of SG&A excludes the impact of these restructuring charges. Total SG&A expenses for Q2 of FY2019 were $2.8 million, a 22% decrease compared to the $3.6 million in Q2 of FY2018. The decrease in the quarter was driven primarily by a reduction in facility costs and professional fees, including legal and accounting. For the 6 mos. of FY2019, SG&A expenses were $6 million, a 19% decrease compared to $7.4 million in the first 6 mos. of FY2018. The decrease for the first 6 mos. of FY2019 was primarily due to a reduction in personnel-related costs, facility costs, and professional fees during the period. For Q2/2019, the company recorded consolidated net loss attributable to common stockholders of $2.9 million, or $.05 per share, compared to a consolidated net loss attributable to common stockholders of $14.1 million, or $.31 per share for the same prior year quarter. For the 6 mos. of FY2019, the company recorded a consolidated net loss attributable to common stockholders of $5.9 million, or $.11 per share, compared to a consolidated net loss attributable to common stockholders of $16.4 million, or $.36 per share for the 6 mos. of FY2018.
The improvements in both Q2/FY2019 and 6-month periods also included the sale of average remaining legacy R&D asset, r84, to Oncologie Inc., for $1 million upfront. r84 is a preclinical novel therapeutic antibody asset targeting VEG-F that has demonstrated anti-tumor activity in animal models. Under the terms of the asset purchase & assignment agreement, Avid is eligible to receive up to an addl. $21 million in the event that Oncologie achieves certain development, regulatory and commercialization milestones with respect to r84, as well as royalties on net sales that are in the low to mid single digits in the event that Oncologie commercializes and sells products utilizing r84. Cash & cash equivalents as of Oct. 31, 2018 were $32.7 million, compared to $42.3 million at the FY2018 ended April 30, 2018. This concludes my financial overview. I will now turn the call back over to Roger to address some key activities and achievements during Q2 of FY2019.
ROGER LIAS (CEO) – Q2/FY19 KEY ACTIVITIES:
As I stated at the beginning of the call, Q2 was a very busy and productive time for Avid. Though most of our advancements took place behind closed doors, we’ve made important foundational progress across all sectors of the business. So firstly, I’d like to address the planned sequential maintenance shutdowns of both the Franklin & Myford manufacturing facilities. In the past, the former subsidiary of Peregrine Pharmaceuticals, Avid has implemented primarily limited rolling overhauls that while allowing basic maintenance did not allow the implementation of certain critical upgrades and maintenance procedures necessary to mitigate risk and ensure efficient bioprocessing. Our last full shutdown was undertaken on the Franklin facility in 2013. Realizing that a scheduled annual shutdown is potentially a new concept to many of our stockholders, I thought it would be useful to provide some additional context regarding the importance of these efforts. While planned facility shutdowns to allow overhaul & maintenance are not specifically required by industry authorities, there are some activities the execution of which are essential to meeting regulatory requirements and reducing risk. These activities include, but are not limited to, the maintenance of equipment & facilities to continue to meet required commercial quality standards, periodic upgrades to and recalibration of equipment, and the installation of new systems and equipment essential to maintaining our ability to meet the needs of our customers. So annual planned shutdowns have become an industry standard and an essential part of maintaining compliance and ensuring the highest quality service and product for customers and, of course, the timely delivery of safe medicines to patients. One of the reasons that most biologics manufacturers then execute a full and complete planned overhaul of manufacturing facilities on a one-time annual basis is the complex nature of the effort. So the shutdowns require truly tremendous coordination between contractors, equipment vendors and company staff, with the goal of minimizing the impact to operations and maintaining customer project timelines. Because no manufacturing work can be conducted during the full overhaul, facilities become idle from a revenue-generating perspective during the shutdown period. The planned annual overhauls that we successfully executed during Q2 of this FY2018 were longer in duration than will typically be required going forward, and this is for a number of reasons. In the case of a Franklin facility, we undertook very significant maintenance and upgrade work necessitated by the age of the facility that had not been adequately addressed previously. In the case of the newer Myford facility, it was necessary to complete some work associated with the commissioning the facility and to add backup power to the laboratory areas, new monitoring systems and some redundancy. The Franklin facility, as a result, will shutdown for a total of 23 days and the Myford facility for 22 days during Q2. Future more routine annual shutdowns will likely span 7-14 days per facility, dependent on the exact nature of the work performed each year. It’s also important to note the facilities have to be first declassified prior to any such shutdown and they must then be reclassified prior to resuming cGMP operations. During the de- and reclassification periods, scheduling inefficiencies also, by definition, impacted. Given the loss of revenue opportunity occasioned by the declassification shutdown and reclassification of manufacturing facilities, I’m pleased with our financial performance during the quarter. I’m also very happy with the performance of our team in efficiently executing these complex activities. Both manufacturing facilities are back to full operational status. It’s important to note that our process development services were not impacted by the shutdowns and work in our labs continued during the period.
As detailed in our Q1 earnings call, our PD function, our process development function, which is responsible for the development of robust compliance and cost-effective processes for our clients and also facilitates the transfer of existing manufacturing processes into our facilities is an important new profit center for Avid. Literally, every client project that comes into Avid Bioservices, whether it’s starting with a DNA sequence and creating a new production cell line for an emerging biotech company, we’re transferring in a well-established existing manufacturing process for a major biopharmaceutical company, either way these pass-through our process development laboratories. These process development functions, which typically contribute, to my experience, around of third of revenue for biologic CDMOs are vital for securing a pipeline of manufacturing opportunities. As detailed previously, our legacy process development facilities lacked investment & scale and were not of a standard necessary to compete effectively within the global biologic CDMO space. As a result, and as many of you are already aware, we’re currently investing in significant upgrades to our labs and related equipment that will allow us to best serve the needs of existing customers to win new business and to grow our manufacturing pipeline. As we expand and improve our facilities and capabilities in this area, we’ve taken great care to phase this work so as not to disrupt any ongoing projects. As we reported last quarter, our first refurbished laboratory, which is the purification development, has been completed and is now fully operational. Ongoing work includes the installation of a major new upstream development laboratory suite that supports development of cell culture processes, as well as other refurbishment work within our existing buildings. These new laboratories are being outfitted with state-of-the-art equipment that introduce considerable efficiencies. We will take occupancy of the new upstream suite in Q1 of calendar 2019, and it will approximately triple Avid cell culture process development capabilities, thus significantly enhancing revenue potential and the ability to expand our client base and manufacturing pipeline. It will also facilitate strengthening of our cell line development service offering. So today, our process development group is operating as a standalone profit center and contributing immediate and meaningful revenues. As we progress through the current FY2018, we add qualified process development scientists, analysts, and associates, will open new labs, commission new equipment, and continue phase laboratory improvements, we look forward to commencing work on additional new projects and the further extension of existing programs.
Before handing over to Tracy to discuss some really good progress being made in the business operations area, I’d like to reiterate the importance of our staff in achieving our goals. Demand for qualified biologics development, manufacturing and quality professionals is truly exceptionally high around the globe currently, and the job market in the biomanufacturing field is highly competitive. In common with our peers, hiring is slower than we would like, but I’m pleased to be able to report that we are identifying and hiring extremely well-qualified and capable candidates into open positions. Continuing to identify and retain qualified personnel is a vital component of our business and critical to growth. And as a result, we have commenced numerous initiatives in this area to ensure that Avid is visible to prospective qualified employees and viewed as an attractive employer, both in the broad biomanufacturing market and in our geographic location. So with that, I’m now happy to be able to turn over the call to Tracy to provide an update on our business operations activities. Tracy?
TRACY KINJERSKI (VP, BUSINESS OPERATIONS):
As Roger detailed in our previous earnings calls, our market segment, development and manufacturing services for biopharmaceuticals derived from from mammalian cell culture, remains extremely robust. We are seeing strong demand for our services and we anticipate an extremely busy 2nd-half of this FY. Of course, some of the strong demand that we’re seeing at Avid is being driven by our continued enhanced marketing efforts, as we bring new awareness of Avid and our capabilities to target audiences that have previously not been aware of us as a CDMO. The efforts of our newly hired business development leads in both the Eastern & Western halves of North America have been a part of the increased market penetration. The number of requests for proposals received doubled between Q1 one and Q2, and the number of proposals issued also doubled during the same period. Perhaps more importantly, the quality of the requests for proposals being received has also greatly improved, allowing us to be more selective and to target opportunities from potential clients that represent a good fit for our existing capabilities and installed capacity.
Our marketing efforts have included a stepped-up media campaign, resulting in significant increased column inches and media outlets targeted to our commercial audience. These included activities such as interviews, articles, and webcasts. We’ve also had strong showings at multiple important trade shows and industry conferences over the last few months, each of these building our visibility within the industry. As a result, the number of new business discussions in which our team is actively engaged continue to grow. I’m also pleased with the progress we’re making with longer lead customers looking to engage in new mfg. partners in the 2020 timeframe and beyond. These tend to be more established potential clients with significant forward-planning. The sales cycles for these opportunities is significant. Before making substantial contracted commitments, these potential clients will further evaluate Avid through additional activities, such as significant technical meetings and reviews, quality audits, financial audits, and environmental health and safety audits in order to place us on preferred vendor list and for us to be considered for future opportunities. These activities draw considerable resources from throughout our organization, but are vital. Though this process and related commercial conversations take more time than we’d like, our discussions are progressing as expected, and we anticipate securing contracts with several of these organizations. I’m pleased to be able to report that we’re currently engaged in negotiations on two substantial new projects, and we look forward to providing further details on these projects once the anticipated contractual agreements are finalized.
Equally as important as engaging new customers is the increasing strength of our relationships with our existing customers. During Q2, we gained increased visibility into forecast for several of our larger ongoing programs. Customer concerns related to confidentiality prevent us from sharing these specific projections based on this information at this time, but we believe demand from these customers will positively impact revenue, margins, and capacity in the coming quarters. Unsurprisingly, given the history of the relationship between our two companies and its importance, we are frequently asked about our business with Halozyme Therapeutics and the outlook for continued commercial manufacturer of enzyme products used in their enhanced platform by their partner companies such as Roche. Our relationship with Halozyme remains strong and we were able to review, both technical & commercial progress with our colleagues there at a recent business review meeting. Halozyme’s booked sales of recombinant human hyaluronidase enzymes and enhanced drug products have recently increased, and this trend is expected to continue into 2019, as Halozyme partners advance their clinical programs and begin preparing for commercialization.
In the short-term, Avid will continue to execute against our regularly updated forecast, and we look forward to increasing our support of Halozyme and their growing list of partners in the not too distant future. As has been detailed previously, ours is a sticky business and contracted commitments from clients extend and expand as their programs progress through clinical development. During Q2, we signed expansion orders for many of our current projects. These developments highlight the value of our existing customer relationships as a valuable source of revenue and growth, now and in the future. In addition to ongoing communication with you and existing clients, we are also entertaining numerous dialogues with vendors and other industry stakeholders as we evaluate possible technology collaborations and other relationships that will allow us over time to introduce additional efficiencies in both process development and manufacturing and, in some cases, provide the opportunity for additional new client capture. In summary, before I hand the call back to Roger for closing remarks, our market opportunity remains considerable, and as we become better-positioned to take advantage of this through the expansion of our process development capabilities and the numerous other initiatives designed to support strong future growth and profitability, I’m excited about bringing you news of very positive developments in the coming two quarters and into FY2020. Roger?
ROGER LIAS (CEO) – FOLLOWUP REMARKS:
In closing, I’d like to briefly revisit and highlight the important strides that we’ve made during Q2, many of which are crucial as we continue to build a very solid foundation for the future. The transition from underfunded excess capacity provider to a dedicated pure play biologic CDMO is, I believe, a more significant undertaking than understood by most based on our starting point. From the formal kickoff of Avid Bioservices less than 12 mos. Ago, concurrent with the JPMorgan Healthcare event in San Francisco, we remain consistent in our message, as we continue to transition this business. Our business development and project management functions that were lacking under the previous model and now delivering and the expansion of process development capabilities is now fully in progress, allowing us the ability to win and onboard new business and expand and diversify our client base. Both are key cornerstones of our business and they, along with other key initiatives, will deliver what we expect to be a strong and profitable business in FY2020. We’ve made significant investments in infrastructure that while limiting our revenue-generating potential during this past Q2, will allow us to provide high-quality and efficient services going forward, with minimized operational and regulatory risk to our customers. Separate from our maintenance activities, we also continue to invest in expanding and enhancing our process development laboratories and capabilities. Our business development team has made very significant progress during the quarter and average visibility continues to improve in the global marketplace. We’re generating high-quality opportunities and are in negotiations with new projects and advancing longer lead time discussions with potential commercial customers. Importantly, during Q2, we also signed expansion orders with many of our current customers. Our backlog remains robust and we have good visibility on opportunities well into the next FY. There remains more work to be done to complete our foundations for growth in our transition, but this comes along side a very considerable opportunity. So in closing, I’m pleased with the progress that we’ve made during Q2/FY2019, as we execute the plan and to continue to put the necessary building blocks in place to support a strong 2nd-half and FY2020 as a dedicated biologics contract development and manufacturing organization. So this concludes my prepared remarks for today, and we’ll now open the call up for questions. Operator?
Q&A: [beg. 25:58]
1. Joe Pantginis - H.C. Wainwright
JP: ”Just wanted to wrap my arms a little bit around the upcoming planned and expected maintenance in the facilities. So is this the time of the year that we should generally expect them? Are the ones that happened really the only full shutdowns we’ll see for a while or they’re more phased going forward, just wanted to get a sense of the forward-looking aspect?”
Roger Lias: So obviously, we’ve completed really a much more major shutdown and maintenance overhaul than we would expect on an annual basis. So it’s good to get that behind us a lot of necessary work that perhaps haven’t been taken care of in the past few years. Going forward, I think, what we’d anticipate is an annual planned shutdown. Again, probably at around this time of year, it doesn’t have to be coordinated, so it’s absolutely at the same time or month even going forward, but this is probably typically annual the is way we would do it. And as mentioned during the call, more typically, I think, the shutdown is likely to be between 1-2 weeks for routine annual shutdown now that a lot of the major work is being taken care of. Now, it can change a little bit year-to-year obviously, if we’re installing a lot of new equipment. For instance, it might take a little bit longer, it could take a little bit less if things are humming along well. So in summary then, I’m not sure if I’m answering your question correctly, but I think so, these will be annual, they will be planned, they will be between 1-2 weeks in duration and they will be around this time of year same Q2, although they don’t have to be.
JP: ”You highlighted on the call, all of you, your strong presence at trade shows and technical shows, so I know this question might touch upon maybe proprietary information, but with all of the advertisements and presence that you have, what else do you highlight, say, from a scientific or technical advancements standpoint that you guys have succeeded with that potentially give you a competitive edge in attracting new business?”
Roger Lias: Yes, and I’ll perhaps go first, but Tracy may want to add comments as well. I think, really we’re unusual, Joe, what is attractive to us, so with the short-term, we have capacity available, of course, and that’s something that will change as we fill. But that’s an interest in speed, whether it’s to clinical to market, so that helps us right now. Although, obviously, from the numbers point of view, we would rather have the capacity full. But having that capacity available to us and useful in the marketplace really, I think, our main differentiators are a combination of our long regulatory track record, being releasing products for the FDA, approved commercial products, for about 13, 14 years now, alongside being if you like small enough and agile enough and with these incredible flexible facilities that we have, the new Myford facility, to be able to bring customers on quickly and efficiently. This just saying you have 2000L bioreactors doesn’t differentiate that much, it’s what you do with them that really counts. Tracy, do you have any extra comments?
Tracy Kinjerski: Well, I would say that there’s one other thing to touch on and that is that Avid, as a CDMO. is unique, in that we also have experience as a product development company. So from a scientific and technical perspective, we have folks that are here at Avid still who have been involved for many years in product development, so when our clients come to us and they need help, they want to take their projects and their molecules through all the phases of clinical trials into market, we totally understand where they’re coming from and we really have empathy for their needs and the journey that they’re on, and I think that’s really very important point to consider.
2. Paul Knight - Janney
PK: ”Can you talk to the backlog. Backlog was down sequentially $60M went to $36M in this quarter. How much of that in your view was kind of planned from kind of the legacy business? And then lastly, I know Tracy had mentioned the level of customer activity. Could she kind of repeat where she was on that? Was it a doubling? Could she just give a little more color, again, I missed that part?”
Roger Lias: With respect to the backlog, I mean, I don’t call it plan, but certainly, we anticipated that we wouldn’t see much growth in any backlog during this quarter, partly because, say, we were limited in our ability to actually bring on new business because of the runway on the process development space. So that was certainly anticipated. On the plus side, during the quarter, of course, it gave us the opportunity then, as I say, we are in very active negotiation with a number of clients now that when we cut the ribbon on the new process development space in the New Year, we’re able to execute those programs going forward. So it’s been, if you like, an iterative process, we have to bring some on, execute some, bring some on, execute some. But that funnel, if you like, that pipeline is now opening with the process development capabilities are expanded. So I would say, it was anticipated and I think we could equally anticipate the backlog will now grow again going forward.
Daniel Hart: And, Paul, I think, you’re probably also asking to backlog based on prior guidance 605 revenue recognition criteria vs. 606. If you look at prior revenue recognition of 605, our backlog went from $60M to $58M, with the difference being revenue and the new contracts that we’ve signed up during the period.
Roger Lias: So it wasn’t much of a drop-off, so we might comparing apples to oranges, Paul. ...And then, Tracy, you had the question for Tracy about the sort of flow of business.
PN: ”Yes. Well, more specifically, the 2 customers that you believe could be large customers. Are they from your existing lineup, or is it 2 new names?”
Tracy Kinjerski: We are signing new projects with new clients. I think that’s the question you’re asking. We have a lot of businesses coming in from existing clients, but the 2 I mentioned are new manufacturing opportunities for us. So they are significant and important part of our, I guess, our portfolio going forward. And just to kind of reiterate, since our East & West Coast business development representatives have come online, they both have significant experience in the industry and have been instrumental in their role in helping us increase visibility in the market and doubling the number of high qualified high-quality RFPs that we’ve received and proposals that we’re issuing as a result.
PN: ”And then lastly, Roger, what’s the state of the monoclonal antibody production market globally? Is production supply tight, or enough is around? What is the status of the market right now for mAb production? Scripts seem to be up 20%, pipelines are big, where are we with production capacity globally in U.S.?”
Roger Lias: We’re following the market in terms of the strong demand for antibodies, so the strong demand for manufacturing put simply. If you look at recent data, growth on the mammalian biologics CDMO space as a whole, which isn’t all antibodies, but it’s certainly driven primarily by antibody and antibody derivatives, depends whose statistics you read 15%, 16% annual growth. My view is, it’s a project-specific question really. For a specific project, you may well find it hard to find capacity or find capacity in the timelines you’re looking for or there might be geographic problems. But, I think in general across the industry, my personal opinion is, we’re about in balanced right now. We have seen huge investments in capacity, but it’s largely in Asia at the moment. And frankly for Avid, we don’t lose too much sleepover that; we have a customer from Asia, but we’re not active in that marketplace. So, it’s a very nuanced question, Paul. I mean, I think overall, we’re roughly in balanced, but if I were a customer with a need to enter the clinic in August of next year or something, I better darn well be getting my capacity reserved now, because you’re going to find it tough sledding if you don’t.
3. Steve Schwartz - First Analysis
SS: ”If we could continue with Paul’s question on the backlog, if I look at it sequentially, the 39M, you went about $10M through revenue, you ended up at $36M. It looks like the $6.3 million of project expansion orders is essentially what you booked new to the backlog in the quarter. Am I reading that correctly?”
Roger Lias: That’s correct.
SS: ”And if you look at the production forecast in the industry that runs out 12-18 mos., what is it about being shutdown for 3 weeks that would hamper your ability to book new work?”
Roger Lias: No, the shutdown had no impact on our ability to book new work, Steve, just to execute, obviously, manufacturing revenue-generating projects and recognize that revenue. The slight bottleneck we’ve had over the past quarter has been in process development. In fact, it’s precisely that it’s – the lab work that we need to bring these projects into manufacturing and, of course, it’s revenue-generating work in its own right as well. But the shutdown didn’t have any impact on our ability to book new work, in fact, just the opposite. Our clients obviously like to see that we’re taking care of routine maintenance. We were able to install backup power and all sorts of things, which customers like to see. So that’s a positive going forward.
SS: ”Maybe I just misinterpreted your comment that you expected the backlog build in the quarter to be light because of so many of these production-related activities that you had going on. So, I guess, I would have expected the backlog in this circumstance to build exceptionally, given that you could not produce and given that, especially since you’re still expecting the same level of revenue for the year and then to work down a higher backlog from Q2 through the 2nd-half of the year? I’m just trying to reconcile kind of what my perspective is vs. what I’m seeing in the numbers here with respect to revenue in the backlog, that’s all?”
Roger Lias: Essentially, we were able to – we didn’t bring on any new projects, so we were able to expand the value of existing projects to roughly the same value of the revenue we recognized during the quarter, roughly speaking, that’s what I meant by remaining roughly balanced.
SS: ”It’s nice to hear Tracy talk about the 2 new customers that are coming on potentially that you’re working with. If you were to secure projects from those new customers, can you give us some sense of the magnitude of what that would be? I mean, are we talking like $10M, $15M, again, just to give us some perspective relative to the existing backlog?”
Roger Lias: I don’t think we can right now, Steve. We hope that we’ll be able to make announcements of those when they’re consummated, if you like, when the final ink is dry on those contracts.
SS: ”Yes. Okay, that’s it for me.”
Roger Lias: They’re substantial. They’re material to our business, I think.
SS: ”Certainly understand, but thought I would ask. My next question is just relative to production risk. When you do the shutdowns like you did, what’s the involvement of the FDA? I would imagine, they’re involved, of course. And does that at all kind of reduce the risk going forward for the next couple of years that you have any 483s, things like that, because you’ve done this work and they’re involved?”
Roger Lias: The FDA actually isn’t involved. It’s entirely an internal exercise. I guess one way we’re looking at it is to stop the FDA from getting involved in future, because you’re doing your maintenance, so to the 2nd part of the question, it does reduce the probabilities that you’ll run into any future problems that’s the reason for doing it, I guess. But the FDA is not directly involved in this at all. This is an internal exercise.
SS: ”So, figuratively speaking, you’ve put yourself in a much better position for future inspections?”
Roger Lias: Yes, absolutely. And for execution, we need to maintain our equipment and make sure that we’re delivering to our customers as well. So yes, very much so.
SS: ”For this upstream lab suite that you’re going to be starting up here in the next couple of months, is that the type of thing you can pre-sell, or is Tracy have to pretty much wait until the lights are on? You’ve got bodies in there and then you can go out and sell it, how does that work?”
Tracy Kinjerski: So, Steve, actually, we haven’t stopped selling during this period. So, it doesn’t impact whether or not we can bring projects forward. So it’s not a bad thing from a business development perspective at all. And actually, it does set us up to put us in a really nice position going forward, as we have additional projects coming our way, but it hasn’t hindered our ability to find.
SS: ”My last question, I think is for Dan. This is with respect to cash from operations. For the past 5 quarters, you’ve earned about $7M in cash from operations. And now we are looking at the 2nd-half of the year, where it looks like, production is definitely going to step up, revenue generation is going to step up. Can you give us any kind of guidance on what cash from operations might look like for 3rd & 4th quarters?”
Daniel Hart: What information that I’ll provided is the burn rate we’ve had for the last 2 quarters involved some of the legacy discontinued operations spend that was still on our balance sheet that we needed to clean up. Going forward, as a pure-play CDMO, we’re going to start to see those wind down. And as our top line increases, our margins will continue to increase as we fill the idle capacity with and utilize that within our facilities and we’ll start to see a lot more of that drop to the bottom line.
ROGER LIAS (CEO) – CLOSING COMMENTS:
In closing, thank you, everybody, for your time today and your continued interest in Avid Bioservices, and, as always, I’d certainly like to thank our Board of Directors, in particular, our employees, our investors and our many other stakeholders for continuing to support the company as we pursue our goals for growth and value creation. So with that we’ll conclude the call. Thank you, and have a great afternoon.
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = == = = =
12-10-18: Avid Bioservices Reports Financial Results for First Quarter FY2019 Ended Oct. 31, 2018 and Recent Developments
GlobalNewsWire: https://tinyurl.com/y9yp8b23
-- FY2019 Projected Revenue of $51-55 Million Reaffired
-- Signed Project Expansion Orders for $6.3 Million with Current Customers
-- Successfully Executed Scheduled Broad Scale Facilities Maintenance and Upgrade Program
TUSTIN, Dec. 10, 2018: Avid Bioservices, Inc. (NASDAQ:CDMO & CDMOP), a dedicated biologics contract development and manufacturing organization (CDMO) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today announced financial results for Q2 of fiscal year (FY) 2019 ended October 31, 2018, and provided an update on its contract manufacturing operations, and other corporate highlights.
HIGHLIGHTS SINCE JULY 31, 2018
“During Q2 we have made very significant progress in both the commercial arena and in our operations as we continue to execute to plan. Re-launching the company as a dedicated biologics contract development and manufacturing organization is a challenging endeavor and I am exceptionally pleased with our progress,” said Roger Lias, Ph.D., Avid’s President and CEO. “On the commercial front we continue to see strong demand and we are making substantial progress in advancing both new and existing projects and improving our profitability. We are engaged in negotiations on new programs that will contribute revenue both during the current fiscal year and through FY2020 and, perhaps more importantly, many of our current customer programs expanded during the quarter. In addition to securing nearer-term business, our recently installed and highly experienced business development team is advancing longer lead time discussions with established biopharmaceutical clients for future commercial opportunities. To support the on-boarding of new projects and to deliver robust, compliant and cost-effective processes to our expanding and diversifying customer base, we continue to strengthen our process development function via the expansion and enhancement of our laboratories and the addition of state-of-the-art equipment. Process development services will become an increasingly important contributor to revenue and will build a strong pipeline of future manufacturing opportunities. It’s pleasing to be able to report revenue of over $10 million and a backlog of $36 million during a quarter in which revenue generating potential was limited by planned sequential maintenance shutdowns of both of Avid’s cGMP manufacturing facilities. These shutdowns, during which we undertook important maintenance activities and upgraded systems represent the most comprehensive overhaul program in the company’s history and were crucial to maintaining compliance; serving our current clients and winning new business, as well as minimizing operational and regulatory risk. Collectively our significant operational and commercial progress, along with diligent management of our financial resources position Avid Bioservices well for transition to cash generation and positive EBITDA.”
RECENT DEVELOPMENTS
1. Signed project expansion orders with current clients representing future revenue in the amount of $6.3 million during Q2.
2. Increased marketing and media activities during the quarter to enhance industry visibility. Received double the number of Requests for Proposal in Q2 2019 as compared to Q1 2019 and increased the number of proposals issued by 100% during the same period.
3. Sold remaining legacy R&D asset, r84, to Oncologie, Inc., for $1.0 million upfront. r84 is a pre-clinical novel therapeutic antibody asset targeting VEG-F that has demonstrated anti-tumor activity in animal models. Under the terms of the purchase and assignment agreement, Avid is eligible to receive up to an additional $21.0 million in development, regulatory and commercialization milestones, as well as low to mid-single digit royalties on net sales upon commercialization of products utilizing r84.
4. Continued progress with ongoing expansion and optimization of our process development capabilities and laboratory space, including:
5. Expanding the total available process development laboratory space to more than 6,000 square feet;
6. Upgrading the infrastructure and equipment within the existing process development laboratories;
7. Implementing new state-of-the-art technologies and equipment designed to facilitate efficient, high-throughput development of upstream and downstream manufacturing processes.
8. Successfully executed the most comprehensive sequential maintenance overhaul in the company’s history, to best serve our existing customers and entice new business.
FINANCIAL HIGHLIGHTS AND GUIDANCE
1. The company is reaffirming revenue guidance for the full FY 2019 of $51-55 million.
2. The revenue backlog as of October 31, 2018 was $36 million, the majority of which we expect to recognize in FY 2019.
3. Contract manufacturing revenue from Avid's clinical and commercial biomanufacturing services was $10.2 million for the Q2/FY2019 compared to $12.8 million for the Q2/FY2018. The decline in the Q2/FY2019 was primarily due to decreased demand from our two lead customers as previously disclosed. In addition, our revenues were impacted by the scheduled facility maintenance and upgrade shutdown.
4. Gross margin for Q2 was a positive 3%, a significant improvement compared to a gross margin of negative 27% during the prior year period. The increase in gross margin for the quarter was primarily attributed to our product mix resulting in improved overhead efficiencies.
5. Selling, general and administrative expenses for the Q2/FY2019 were $2.8 million, compared to $3.6 million for the Q2/FY2018. The decrease in the Q2/FY2019 was primarily due to reductions in facility costs and legal, accounting and other professional fees.
6. For the Q2/FY2019, the company recorded consolidated net loss attributable to common stockholders of $2.9 million, or $0.05 per share, compared to a consolidated net loss attributable to common stockholders of $14.1 million, or $0.31 per share, for the Q2/FY2018.
7. Avid reported $32.7 million in cash and cash equivalents as of October 31, 2018, compared to $42.3 million on April 30, 2018.
More detailed financial information and analysis may be found in Avid’s Quarterly Report on Form 10-Q, which will be filed with the SEC today. [ https://tinyurl.com/y8boxjys ]
Conference Call
Avid will host a conference call and webcast this afternoon, December 10, 2018, at 4:30 PM EST (1:30 PM PST). To listen to the conference call, please dial (877) 312-5443 or (253) 237-1126 and request the Avid Bioservices conference call. To listen to the live webcast, or access the archived webcast, please visit: http://ir.avidbio.com/events.cfm .
ABOUT AVID BIOSERVICES, INC.
Avid Bioservices is a dedicated contract development and manufacturing organization (CDMO) focused on development and cGMP manufacturing of biopharmaceutical products derived from mammalian cell culture. The company provides a comprehensive range of process development, high quality cGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With 25 years of experience producing monoclonal antibodies and recombinant proteins in batch, fed-batch and perfusion modes, Avid's services include cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission and support. The company also provides a variety of process development activities, including cell line development and optimization, cell culture and feed optimization, analytical methods development and product characterization. http://www.avidbio.com
Forward-Looking *snip*
AVID BIOSERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
(in thousands, except share and per share information)
Three Months Ended
October 31, 6 mos. Ended
October 31, 2018 2017 2018 2017
Contract manufacturing revenue $10,178 $ 12,782 $ 22,767 $ 39,859
Cost of contract manufacturing 9,844 16,242 21,241 36,690
Gross profit (loss) 334 (3,460 ) 1,526 3,169
Operating expenses:
Selling, general and administrative 2,816 3,596 6,031 7,449
Restructuring charges — 1,258 — 1,258
Total operating expenses 2,816 4,854 6,031 8,707
Operating loss (2,482 ) (8,314 ) (4,505 ) (5,538 )
Interest and other income, net 119 13 181 37
Loss from continuing operations before income taxes $ (2,363 ) $ (8,301 ) $ (4,324 ) $(5,501 )
Income tax benefit 173 — 173 —
Loss from continuing operations $ (2,190 ) $ (8,301 ) $ (4,151 ) $ (5,501
Income (loss) from discontinued operations, net of tax 739 (4,323 ) 739 (8,328 )
Net loss $ (1,451 ) $ (12,624 ) $ (3,412 ) $ (13,829 )
Comprehensive loss $ (1,451 ) $ (12,624 ) $ (3,412 ) $ (13,829 )
Series E preferred stock accumulated dividends (1,442 ) (1,442 ) (2,523 ) (2,523 )
Net loss attributable to common stockholders $(2,893) $ (14,066 ) $ (5,935 ) $ (16,352 )
Basic and diluted weighted average common shares outstanding 56,008,541 45,097,474 55,889,325 44,935,600
Basic and diluted net (loss) income per common share attributable to common stockholders:
Continuing operations $ (0.06 ) $ (0.21 ) $ (0.12 ) $ (0.18 )
Discontinued operations $ 0.01 $ (0.10 ) $ 0.01 $ (0.18 )
Net loss per share attributable to common stockholders $ (0.05 ) $ (0.31 ) $ (0.11 ) $(0.36 )
AVID BIOSERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)
October 31, 2018 April 30, 2018
Unaudited
ASSETS
Current assets:
Cash and cash equivalents $ 32,694 $ 42,265
Trade and other receivables 4,197 3,754
Contract assets 5,092 —
Inventories 9,736 16,129
Prepaid expenses 774 679
Assets of discontinued operations — 5,000
Total current assets 52,493 67,827
Property and equipment, net 26,279 26,479
Restricted cash 1,150 1,150
Other assets 302 304
Total assets $ 80,224 $ 95,760
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 3,223 $ 1,909
Accrued payroll and related costs 1,829 2,564
Contract liabilities 17,307 27,935
Other current liabilities 433 905
Liabilities of discontinued operations 416 4,550
Total current liabilities 23,208 37,863
Deferred rent, less current portion 2,126 2,159
Capital lease, less current portion 93 —
Commitments and contingencies
Stockholders’ equity:
Preferred stock—$0.001 par value; 5,000,000 shares authorized; 1,647,760 shares issued and outstanding at October 31, 2018 and April 30, 2018, respectively 2 2
Common stock—$0.001 par value; 150,000,000 shares authorized; 56,063,488 and 55,689,222 shares issued and outstanding at October 31, 2018 and April 30, 2018, respectively 56 55
Additional paid-in capital 614,541 614,810
Accumulated deficit (559,802) (559,129)
Total stockholders’ equity 54,797 55,738
Total liabilities and stockholders’ equity $ 80,224 $ 95,760
CONTACTS:
• Stephanie Diaz (Investors) Vida Strategic Partners 415-675-7401 sdiaz@vidasp.com
• Tim Brons (Media) Vida Strategic Partners 415-675-7402 tbrons@vidasp.com
- - - - - - - -
From 10-Q header: “As of Dec 3, 2018, there were 56,067,867 shares outstanding.”
- - - - - - - - - - - - - - - - -
Latest 10K 4-30-18 iss. 7-16-18 https://tinyurl.com/ydc8vew5 PR: https://tinyurl.com/y93fux9h (Cash 4-30-18=$42.3mm)
Latest 10Q 10-31-18 iss. 12-10-18 https://tinyurl.com/y8boxjys PR: https://tinyurl.com/y9yp8b23 (Cash 10-31-18=$32.7mm)
ALL SEC filings for PPHM: http://tinyurl.com/6d4jw8
= = = = = = = = = = = = = = = = = = = = = = = = = = = =
Updated PPHM REVS-BY-QTR TABLE, now thru FY19'Q2(qe 10-31-18), per the 10-Q (https://tinyurl.com/ycfrgsjm ) issued 12-10-18.
• Total Avid Revs since May’03: $318.3mm
• 12-10-18: FY'19 (May'18-Apr'19) Avid revs guidance $51-55mm (committed B/L=$36M at 10-31-18).
• Inventories at 10-31-18 total $9.7mm, UP from $9.2mm at 7-31-18.
Avid’s website: http://www.avidbio.com
- - - - - - - - CDMO’s Fiscal Qtr’s (FY runs May – April):
FY’16-Q1 = q/e 7-31-15 – rep. 9-9-15 Wed (after mkt)
FY’16-Q2 = q/e 10-31-15 – rep. 12-10-15 Thu (after mkt)
FY’16-Q3 = q/e 1-31-16 – rep. 3-9-16 Wed (B4 mkt)
FY’16-Q4 = q/e 4-30-16 – rep. 7-14-16 Thu (after mkt)
FY’17-Q1 = q/e 7-31-16 – rep. 9-8-16 Thu (after mkt)
FY’17-Q2 = q/e 10-31-16 – rep. 12-12-16 Mon (after mkt)
FY’17-Q3 = q/e 1-31-17 – rep. 3-13-17 Mon (after mkt)
FY’17-Q4 = q/e 4-30-17 – rep. 7-14-17 Fri (after mkt)
FY’18-Q1 = q/e 7-31-17 – rep. 9-11-17 Mon (after mkt)
FY’18-Q2 = q/e 10-31-17 – rep. 12-11-17 Mon (after mkt)
FY’18-Q3 = q/e 1-31-18 – rep. 3-12-18 Mon (after mkt)
FY’18-Q4 = q/e 4-30-18 – rep. 7-16-18 Mon (after mkt)
FY’19-Q1 = q/e 7-31-18 – rep. 9-10-18 Mon (after mkt)
FY’19-Q2 = q/e 10-31-18 – rep. 12-10-18 Mon (after mkt)
= = = = = = = = = = = =
“Going Concern” stmt. ELIMINATED from 10-K pub. 7-11-13; RE-INSTATED in 10-K pub. 7-14-17…
2012: 4-30-12 10-K iss. 7-16-12 Pg.68: “As more fully described in Note 2, the Company’s recurring losses from operations & recurring neg. cash flows from operating activities raise substantial doubt about its ability to continue as a going concern.” http://tinyurl.com/79o57b2
2013 & 2014 & 2015 & 2016 10-K's: http://tinyurl.com/p58jcbw etc...=> (((NO GOING CONCERN STATEMENT INCLUDED.)))
2017 7-14-17: “Going Concern” re-instated in the 4-30-17 10-K (pg.13) http://tinyurl.com/ycxu4l5n
CASH a/o 1-31-14: $63.2mm
CASH a/o 2-15-14: $79.7mm
CASH a/o 4-30-14: $77.5mm
CASH a/o 6-30-14: $78.3mm
CASH a/o 7-31-14: $73.3mm
CASH a/o 10-31-14: $64.4mm
CASH a/o 1-31-15: $55.2mm
CASH a/o 4-30-15: $68.0mm
CASH a/o 7-31-15: $59.0mm
CASH a/o 10-31-15: $72.0mm
CASH a/o 1-31-16: $67.5mm
CASH a/o 4-30-16: $61.4mm
CASH a/o 7-31-16: $44.2mm
CASH a/o 10-31-16: $49.5mm
CASH a/o 1-31-17: $41.5mm
CASH a/o 4-30-17: $46.8mm
CASH a/o 7-31-17: $37.3mm
CASH a/o 10-31-17: $27.7mm
CASH a/o 1-31-18: $17.9mm
CASH a/o 2-28-18: $41.7mm
CASH a/o 4-30-18: $42.3mm
CASH a/o 7-31-18: $37.5mm
CASH a/o 10-31-18: $32.7mm
CDMO - O/S Shares History (’06–curr.)
Click here for 4/30/06–12/8/16 Peregrine Pharm. share history: https://tinyurl.com/y76cbyt5
**PPHM shares were 1:5 R/S eff. 10-19-09 (~237mm/$.64=>~47.4mm/$3.20) http://tinyurl.com/ykuw588
**PPHM shares were 1:7 R/S eff. 7-10-17 (315mm/$.606=>45mm/$4.24) http://tinyurl.com/ycohqn6j
1-31-17: 271,068,464 +13,926,930 (1-31-17 10Q iss. 3-13-17)
3-10-17: 297,709,478 +26,641,014 (“ “ “)
4-30-17: 44,014,040(x7)=308,098,280 +10,388,802 (4-30-17 10K iss. 7-14-17)
7-10-17: 45,069,188 +1,055,148 (“ “ “)
7-31-16: 45,094,154 +24,966 (7-31-17 10Q iss. 9-11-17)
8-25-17: 45,096,081 +1,927 (8-25-17 Amended 10K http://tinyurl.com/yb5jq7vc )
9-6-17: 45,096,081 nochg (7-31-17 10Q iss. 9-11-17)
10-31-16: 45,172,632 +76,551 (10-31-17 10Q iss. 12-11-17)
11-27-17: 45,210,608 +37,976 (14A/Proxy iss. 12-7-17 https://tinyurl.com/y7qprpg9 )
12-6-17: 45,212,760 +2,152 (10-31-17 10Q iss. 12-11-17)
1-8-18: 45,253,038 +40,278 (2-8-18 13D https://tinyurl.com/ya43sc3r )
1-31-18: 45,257,180 +4,142 (1-31-18 10Q iss. 3-12-18)
...2-20-18: Avid Raises ~$21.8M net, selling 10,294,445sh.@$2.25 (underwriter: Wells Fargo)
…... 8-K: https://tinyurl.com/ya3nenth 424B5: https://tinyurl.com/ycpshgxl
3-7-18: 55,552,233 +10,295,053 (1-31-18 10Q)
4-30-18: 55,689,222 +133,989 (4-30-18 10K)
7-10-18: 55,793,107 +103,885 (4-30-18 10K)
9-5-18: 56,001,456 +208,349 (7-31-18 10Q)
10-31-18: 56,063,488 +62,032 (10-31-18 10Q)
12-3-18: 56,067,867 +4,379 (10-31-18 10Q)
*Revs Guidance (FY’19 fye 4-30-19): $51-55mm. 10-31-18 Backlog=$36M
*Cash: 10-31-18: $32.7mm
*As of Dec 3, 2018: 56,067,867 shares o/s.
*10Q/10-31-18 iss. 12-10-18: https://tinyurl.com/y8boxjys
*Avid Total Revs May03-Oct18: $318.3mm
*Avid’s website: https://avidbio.com
This large post has 4 sections:
I. 12-10-18 Qtly. Earnings Conf. Call TRANSCRIPT (FY19/Q2 q/e 10-31-18)
II. 12-10-18 CDMO Press Release: Q2/FY19 Earnings & Developments
IV. Updated Table of Avid Revenues By Quarter (May’06-Current)
III. Updated O/S Shares History Table – 2006-curr.
…Recall: Avid’s FY runs May-Apr, so FY’19 = May’18-Apr’19.
((( Orig. transcript from SeekingAlpha.com [https://tinyurl.com/y9de6ol4 ] with numerous corrections made. )))
Link to webcast replay: http://ir.avidbio.com/events-and-presentations => https://edge.media-server.com/m6/p/5gs2g7b5
TRANSCRIPT… 12-10-18 FY’19/Q2 Earnings Conf. Call (q/e 10-31-18) (Lias/Hart/Kinjerski)
WELCOME & FWD-LOOKING STATEMENTS: Tim Brons, Vida Strategic Partners (IR)
ROGER LIAS (CEO) – OPENING COMMENTS:
Thank you, Tim, and thanks to all of you who’ve dialed in, who are participating today via the webcast. Q2 was very important for Avid and a successful one, as we continued to execute the plan and build the foundation needed for significant future growth in an exciting and dynamic market space. While the period may have seemed quiet from the outside, I can assure you that it was quite the opposite. During the quarter, we made significant progress in positioning the company for strong growth and transition to profitability. We’ve continued process development, laboratory expansion and upgrades and executed the most comprehensive maintenance overhaul in the company’s history. While these vital improvements were being made, we continued to execute existing projects in both process development and manufacturing according to plan and have progressed and importantly, expanded current client programs. The focus of our process development team on timely execution of current revenue-generating customer projects limited our ability to onboard any significant new projects during the quarter, though the expansion and improvements being implemented in this area now allow us to advance numerous ongoing discussions with new customers, and Tracy will provide an update on progress in this area and her discussion of our business operations. In addition to customer discussions, we’re also exploring other potentially beneficial collaborations with highly qualified players in the biologics manufacturing arena. As these activities have been progressing, we’ve been diligently managing our cash in order to position Avid Bioservices to transition to cash generation and positive EBITDA. As mentioned during our Q1 call, the precise point at which we hit these important milestones is to some extent, dependent on issues that are out of our direct control, such as scientific and technical progress and the scheduling of existing client programs. Given the improving visibility that we have today, however, we’re very pleased with the steady progress we continue to make towards these goals. I’ll provide more details on all of these matters, including the maintenance overhaul and the enhancement of the process development capabilities following the review of financial results from Dan. So with that, I’ll turn it over to him to provide a financial overview.
DANIEL HART (CFO) – OPENING COMMENTS:
Thanks, Roger. Before I begin, I’d like to recommend that everyone participating refer to Avid’s 10-Q filing [ https://tinyurl.com/y8boxjys ] which we filed today for additional details. I’ll now discuss our financial results from continuing operations for Q2 ended Oct. 31, 2018, starting with revenue. As a reminder, Avid has provided revenue guidance for the full FY2019 of $51-55 million under the ASC 606 revenue recognition standard and today we are reaffirming this goal. We remain confident in our ability to meet this guidance despite a decline in revenues during Q2/FY2019, as compared to the prior year period. Specifically, Avid recognized revenue of $10.2 million, a decrease of 20%, as compared to $12.8 million in Q2 of the prior year. Our current period revenues were impacted by our planned sequential shutdown of both Franklin & Myford manufacturing facilities that occurred during the quarter in order to conduct broad scale and significant overhaul maintenance and upgrades. During this period, manufacturing was halted for several weeks creating idle capacity and a decline in revenues compared to the same prior year period. While these shutdowns obviously limited revenue- opportunity during the quarter, they are critical to maintaining regulatory compliance and the highest standards for manufacturing. All reputable biologic manufacturers, including CDMOs, conduct such maintenance programs on an annual basis. Roger will give more detail as to the specifics of the maintenance overhaul following my review.
For the 6 months ended Oct. 31, 2018, revenues were $22.8 million, a 43% decrease, as compared to revenues of $39.9 million during the prior year period. This decrease was primarily attributed to a few key factors, including the aforementioned shutdown and maintenance in Q2, the previously discussed reduction and requirement for materials by commercial clients, and the fact this year represents our transition year to a dedicated CDMO. On a positive note, each of these factors will immediately contribute to new growth and increase to future revenue. Supporting our revenue goal is our backlog, which as of Oct. 31, 2018 was $36 million, the majority of which we expect to recognize in FY2019. Gross margin for Q2 was a positive 3.3%, a significant increase compared to a negative gross margin of 27.1% in the prior year period. Idle capacity costs of $2.9 million during Q2/FY2019 negatively impacted gross margin by 29 percentage points. The increase in gross profit for the quarter was primarily attributed to product mix, resulting in an improved overhead efficiencies, combined with a decrease in idle capacity cost. Gross margin for the 6 mos. ended October 31, 2018 was 6.7%, a 16% decrease compared to the 8% in the prior year period. This decrease was primarily attributed to the variability of product cost, offset by a favorable reduction in idle capacity cost. It was gratifying to see our margins improve during Q2, and they would have been further improved had we not incurred additional idle capacity due to the maintenance overhaul. As we’ve stated previously, given the fixed costs associated with highly regulated biologics manufacturing under current good manufacturing practices, margins will continue to be impacted until capacity utilization is increased. To this end, we continue an aggressive effort to both expand our customer base and extend current client projects to increase our backlog and enhance capacity utilization.
Turning now to operating expenses. During the prior year quarter ended October 2017, we incurred charges of $1.6 million directly related to a restructuring plan we implemented in August of 2017. For more information on the restructuring, please refer to our annual report on Form 10-K for the year ended April 30, 2018. The remaining discussion of SG&A excludes the impact of these restructuring charges. Total SG&A expenses for Q2 of FY2019 were $2.8 million, a 22% decrease compared to the $3.6 million in Q2 of FY2018. The decrease in the quarter was driven primarily by a reduction in facility costs and professional fees, including legal and accounting. For the 6 mos. of FY2019, SG&A expenses were $6 million, a 19% decrease compared to $7.4 million in the first 6 mos. of FY2018. The decrease for the first 6 mos. of FY2019 was primarily due to a reduction in personnel-related costs, facility costs, and professional fees during the period. For Q2/2019, the company recorded consolidated net loss attributable to common stockholders of $2.9 million, or $.05 per share, compared to a consolidated net loss attributable to common stockholders of $14.1 million, or $.31 per share for the same prior year quarter. For the 6 mos. of FY2019, the company recorded a consolidated net loss attributable to common stockholders of $5.9 million, or $.11 per share, compared to a consolidated net loss attributable to common stockholders of $16.4 million, or $.36 per share for the 6 mos. of FY2018.
The improvements in both Q2/FY2019 and 6-month periods also included the sale of average remaining legacy R&D asset, r84, to Oncologie Inc., for $1 million upfront. r84 is a preclinical novel therapeutic antibody asset targeting VEG-F that has demonstrated anti-tumor activity in animal models. Under the terms of the asset purchase & assignment agreement, Avid is eligible to receive up to an addl. $21 million in the event that Oncologie achieves certain development, regulatory and commercialization milestones with respect to r84, as well as royalties on net sales that are in the low to mid single digits in the event that Oncologie commercializes and sells products utilizing r84. Cash & cash equivalents as of Oct. 31, 2018 were $32.7 million, compared to $42.3 million at the FY2018 ended April 30, 2018. This concludes my financial overview. I will now turn the call back over to Roger to address some key activities and achievements during Q2 of FY2019.
ROGER LIAS (CEO) – Q2/FY19 KEY ACTIVITIES:
As I stated at the beginning of the call, Q2 was a very busy and productive time for Avid. Though most of our advancements took place behind closed doors, we’ve made important foundational progress across all sectors of the business. So firstly, I’d like to address the planned sequential maintenance shutdowns of both the Franklin & Myford manufacturing facilities. In the past, the former subsidiary of Peregrine Pharmaceuticals, Avid has implemented primarily limited rolling overhauls that while allowing basic maintenance did not allow the implementation of certain critical upgrades and maintenance procedures necessary to mitigate risk and ensure efficient bioprocessing. Our last full shutdown was undertaken on the Franklin facility in 2013. Realizing that a scheduled annual shutdown is potentially a new concept to many of our stockholders, I thought it would be useful to provide some additional context regarding the importance of these efforts. While planned facility shutdowns to allow overhaul & maintenance are not specifically required by industry authorities, there are some activities the execution of which are essential to meeting regulatory requirements and reducing risk. These activities include, but are not limited to, the maintenance of equipment & facilities to continue to meet required commercial quality standards, periodic upgrades to and recalibration of equipment, and the installation of new systems and equipment essential to maintaining our ability to meet the needs of our customers. So annual planned shutdowns have become an industry standard and an essential part of maintaining compliance and ensuring the highest quality service and product for customers and, of course, the timely delivery of safe medicines to patients. One of the reasons that most biologics manufacturers then execute a full and complete planned overhaul of manufacturing facilities on a one-time annual basis is the complex nature of the effort. So the shutdowns require truly tremendous coordination between contractors, equipment vendors and company staff, with the goal of minimizing the impact to operations and maintaining customer project timelines. Because no manufacturing work can be conducted during the full overhaul, facilities become idle from a revenue-generating perspective during the shutdown period. The planned annual overhauls that we successfully executed during Q2 of this FY2018 were longer in duration than will typically be required going forward, and this is for a number of reasons. In the case of a Franklin facility, we undertook very significant maintenance and upgrade work necessitated by the age of the facility that had not been adequately addressed previously. In the case of the newer Myford facility, it was necessary to complete some work associated with the commissioning the facility and to add backup power to the laboratory areas, new monitoring systems and some redundancy. The Franklin facility, as a result, will shutdown for a total of 23 days and the Myford facility for 22 days during Q2. Future more routine annual shutdowns will likely span 7-14 days per facility, dependent on the exact nature of the work performed each year. It’s also important to note the facilities have to be first declassified prior to any such shutdown and they must then be reclassified prior to resuming cGMP operations. During the de- and reclassification periods, scheduling inefficiencies also, by definition, impacted. Given the loss of revenue opportunity occasioned by the declassification shutdown and reclassification of manufacturing facilities, I’m pleased with our financial performance during the quarter. I’m also very happy with the performance of our team in efficiently executing these complex activities. Both manufacturing facilities are back to full operational status. It’s important to note that our process development services were not impacted by the shutdowns and work in our labs continued during the period.
As detailed in our Q1 earnings call, our PD function, our process development function, which is responsible for the development of robust compliance and cost-effective processes for our clients and also facilitates the transfer of existing manufacturing processes into our facilities is an important new profit center for Avid. Literally, every client project that comes into Avid Bioservices, whether it’s starting with a DNA sequence and creating a new production cell line for an emerging biotech company, we’re transferring in a well-established existing manufacturing process for a major biopharmaceutical company, either way these pass-through our process development laboratories. These process development functions, which typically contribute, to my experience, around of third of revenue for biologic CDMOs are vital for securing a pipeline of manufacturing opportunities. As detailed previously, our legacy process development facilities lacked investment & scale and were not of a standard necessary to compete effectively within the global biologic CDMO space. As a result, and as many of you are already aware, we’re currently investing in significant upgrades to our labs and related equipment that will allow us to best serve the needs of existing customers to win new business and to grow our manufacturing pipeline. As we expand and improve our facilities and capabilities in this area, we’ve taken great care to phase this work so as not to disrupt any ongoing projects. As we reported last quarter, our first refurbished laboratory, which is the purification development, has been completed and is now fully operational. Ongoing work includes the installation of a major new upstream development laboratory suite that supports development of cell culture processes, as well as other refurbishment work within our existing buildings. These new laboratories are being outfitted with state-of-the-art equipment that introduce considerable efficiencies. We will take occupancy of the new upstream suite in Q1 of calendar 2019, and it will approximately triple Avid cell culture process development capabilities, thus significantly enhancing revenue potential and the ability to expand our client base and manufacturing pipeline. It will also facilitate strengthening of our cell line development service offering. So today, our process development group is operating as a standalone profit center and contributing immediate and meaningful revenues. As we progress through the current FY2018, we add qualified process development scientists, analysts, and associates, will open new labs, commission new equipment, and continue phase laboratory improvements, we look forward to commencing work on additional new projects and the further extension of existing programs.
Before handing over to Tracy to discuss some really good progress being made in the business operations area, I’d like to reiterate the importance of our staff in achieving our goals. Demand for qualified biologics development, manufacturing and quality professionals is truly exceptionally high around the globe currently, and the job market in the biomanufacturing field is highly competitive. In common with our peers, hiring is slower than we would like, but I’m pleased to be able to report that we are identifying and hiring extremely well-qualified and capable candidates into open positions. Continuing to identify and retain qualified personnel is a vital component of our business and critical to growth. And as a result, we have commenced numerous initiatives in this area to ensure that Avid is visible to prospective qualified employees and viewed as an attractive employer, both in the broad biomanufacturing market and in our geographic location. So with that, I’m now happy to be able to turn over the call to Tracy to provide an update on our business operations activities. Tracy?
TRACY KINJERSKI (VP, BUSINESS OPERATIONS):
As Roger detailed in our previous earnings calls, our market segment, development and manufacturing services for biopharmaceuticals derived from from mammalian cell culture, remains extremely robust. We are seeing strong demand for our services and we anticipate an extremely busy 2nd-half of this FY. Of course, some of the strong demand that we’re seeing at Avid is being driven by our continued enhanced marketing efforts, as we bring new awareness of Avid and our capabilities to target audiences that have previously not been aware of us as a CDMO. The efforts of our newly hired business development leads in both the Eastern & Western halves of North America have been a part of the increased market penetration. The number of requests for proposals received doubled between Q1 one and Q2, and the number of proposals issued also doubled during the same period. Perhaps more importantly, the quality of the requests for proposals being received has also greatly improved, allowing us to be more selective and to target opportunities from potential clients that represent a good fit for our existing capabilities and installed capacity.
Our marketing efforts have included a stepped-up media campaign, resulting in significant increased column inches and media outlets targeted to our commercial audience. These included activities such as interviews, articles, and webcasts. We’ve also had strong showings at multiple important trade shows and industry conferences over the last few months, each of these building our visibility within the industry. As a result, the number of new business discussions in which our team is actively engaged continue to grow. I’m also pleased with the progress we’re making with longer lead customers looking to engage in new mfg. partners in the 2020 timeframe and beyond. These tend to be more established potential clients with significant forward-planning. The sales cycles for these opportunities is significant. Before making substantial contracted commitments, these potential clients will further evaluate Avid through additional activities, such as significant technical meetings and reviews, quality audits, financial audits, and environmental health and safety audits in order to place us on preferred vendor list and for us to be considered for future opportunities. These activities draw considerable resources from throughout our organization, but are vital. Though this process and related commercial conversations take more time than we’d like, our discussions are progressing as expected, and we anticipate securing contracts with several of these organizations. I’m pleased to be able to report that we’re currently engaged in negotiations on two substantial new projects, and we look forward to providing further details on these projects once the anticipated contractual agreements are finalized.
Equally as important as engaging new customers is the increasing strength of our relationships with our existing customers. During Q2, we gained increased visibility into forecast for several of our larger ongoing programs. Customer concerns related to confidentiality prevent us from sharing these specific projections based on this information at this time, but we believe demand from these customers will positively impact revenue, margins, and capacity in the coming quarters. Unsurprisingly, given the history of the relationship between our two companies and its importance, we are frequently asked about our business with Halozyme Therapeutics and the outlook for continued commercial manufacturer of enzyme products used in their enhanced platform by their partner companies such as Roche. Our relationship with Halozyme remains strong and we were able to review, both technical & commercial progress with our colleagues there at a recent business review meeting. Halozyme’s booked sales of recombinant human hyaluronidase enzymes and enhanced drug products have recently increased, and this trend is expected to continue into 2019, as Halozyme partners advance their clinical programs and begin preparing for commercialization.
In the short-term, Avid will continue to execute against our regularly updated forecast, and we look forward to increasing our support of Halozyme and their growing list of partners in the not too distant future. As has been detailed previously, ours is a sticky business and contracted commitments from clients extend and expand as their programs progress through clinical development. During Q2, we signed expansion orders for many of our current projects. These developments highlight the value of our existing customer relationships as a valuable source of revenue and growth, now and in the future. In addition to ongoing communication with you and existing clients, we are also entertaining numerous dialogues with vendors and other industry stakeholders as we evaluate possible technology collaborations and other relationships that will allow us over time to introduce additional efficiencies in both process development and manufacturing and, in some cases, provide the opportunity for additional new client capture. In summary, before I hand the call back to Roger for closing remarks, our market opportunity remains considerable, and as we become better-positioned to take advantage of this through the expansion of our process development capabilities and the numerous other initiatives designed to support strong future growth and profitability, I’m excited about bringing you news of very positive developments in the coming two quarters and into FY2020. Roger?
ROGER LIAS (CEO) – FOLLOWUP REMARKS:
In closing, I’d like to briefly revisit and highlight the important strides that we’ve made during Q2, many of which are crucial as we continue to build a very solid foundation for the future. The transition from underfunded excess capacity provider to a dedicated pure play biologic CDMO is, I believe, a more significant undertaking than understood by most based on our starting point. From the formal kickoff of Avid Bioservices less than 12 mos. Ago, concurrent with the JPMorgan Healthcare event in San Francisco, we remain consistent in our message, as we continue to transition this business. Our business development and project management functions that were lacking under the previous model and now delivering and the expansion of process development capabilities is now fully in progress, allowing us the ability to win and onboard new business and expand and diversify our client base. Both are key cornerstones of our business and they, along with other key initiatives, will deliver what we expect to be a strong and profitable business in FY2020. We’ve made significant investments in infrastructure that while limiting our revenue-generating potential during this past Q2, will allow us to provide high-quality and efficient services going forward, with minimized operational and regulatory risk to our customers. Separate from our maintenance activities, we also continue to invest in expanding and enhancing our process development laboratories and capabilities. Our business development team has made very significant progress during the quarter and average visibility continues to improve in the global marketplace. We’re generating high-quality opportunities and are in negotiations with new projects and advancing longer lead time discussions with potential commercial customers. Importantly, during Q2, we also signed expansion orders with many of our current customers. Our backlog remains robust and we have good visibility on opportunities well into the next FY. There remains more work to be done to complete our foundations for growth in our transition, but this comes along side a very considerable opportunity. So in closing, I’m pleased with the progress that we’ve made during Q2/FY2019, as we execute the plan and to continue to put the necessary building blocks in place to support a strong 2nd-half and FY2020 as a dedicated biologics contract development and manufacturing organization. So this concludes my prepared remarks for today, and we’ll now open the call up for questions. Operator?
Q&A: [beg. 25:58]
1. Joe Pantginis - H.C. Wainwright
JP: ”Just wanted to wrap my arms a little bit around the upcoming planned and expected maintenance in the facilities. So is this the time of the year that we should generally expect them? Are the ones that happened really the only full shutdowns we’ll see for a while or they’re more phased going forward, just wanted to get a sense of the forward-looking aspect?”
Roger Lias: So obviously, we’ve completed really a much more major shutdown and maintenance overhaul than we would expect on an annual basis. So it’s good to get that behind us a lot of necessary work that perhaps haven’t been taken care of in the past few years. Going forward, I think, what we’d anticipate is an annual planned shutdown. Again, probably at around this time of year, it doesn’t have to be coordinated, so it’s absolutely at the same time or month even going forward, but this is probably typically annual the is way we would do it. And as mentioned during the call, more typically, I think, the shutdown is likely to be between 1-2 weeks for routine annual shutdown now that a lot of the major work is being taken care of. Now, it can change a little bit year-to-year obviously, if we’re installing a lot of new equipment. For instance, it might take a little bit longer, it could take a little bit less if things are humming along well. So in summary then, I’m not sure if I’m answering your question correctly, but I think so, these will be annual, they will be planned, they will be between 1-2 weeks in duration and they will be around this time of year same Q2, although they don’t have to be.
JP: ”You highlighted on the call, all of you, your strong presence at trade shows and technical shows, so I know this question might touch upon maybe proprietary information, but with all of the advertisements and presence that you have, what else do you highlight, say, from a scientific or technical advancements standpoint that you guys have succeeded with that potentially give you a competitive edge in attracting new business?”
Roger Lias: Yes, and I’ll perhaps go first, but Tracy may want to add comments as well. I think, really we’re unusual, Joe, what is attractive to us, so with the short-term, we have capacity available, of course, and that’s something that will change as we fill. But that’s an interest in speed, whether it’s to clinical to market, so that helps us right now. Although, obviously, from the numbers point of view, we would rather have the capacity full. But having that capacity available to us and useful in the marketplace really, I think, our main differentiators are a combination of our long regulatory track record, being releasing products for the FDA, approved commercial products, for about 13, 14 years now, alongside being if you like small enough and agile enough and with these incredible flexible facilities that we have, the new Myford facility, to be able to bring customers on quickly and efficiently. This just saying you have 2000L bioreactors doesn’t differentiate that much, it’s what you do with them that really counts. Tracy, do you have any extra comments?
Tracy Kinjerski: Well, I would say that there’s one other thing to touch on and that is that Avid, as a CDMO. is unique, in that we also have experience as a product development company. So from a scientific and technical perspective, we have folks that are here at Avid still who have been involved for many years in product development, so when our clients come to us and they need help, they want to take their projects and their molecules through all the phases of clinical trials into market, we totally understand where they’re coming from and we really have empathy for their needs and the journey that they’re on, and I think that’s really very important point to consider.
2. Paul Knight - Janney
PK: ”Can you talk to the backlog. Backlog was down sequentially $60M went to $36M in this quarter. How much of that in your view was kind of planned from kind of the legacy business? And then lastly, I know Tracy had mentioned the level of customer activity. Could she kind of repeat where she was on that? Was it a doubling? Could she just give a little more color, again, I missed that part?”
Roger Lias: With respect to the backlog, I mean, I don’t call it plan, but certainly, we anticipated that we wouldn’t see much growth in any backlog during this quarter, partly because, say, we were limited in our ability to actually bring on new business because of the runway on the process development space. So that was certainly anticipated. On the plus side, during the quarter, of course, it gave us the opportunity then, as I say, we are in very active negotiation with a number of clients now that when we cut the ribbon on the new process development space in the New Year, we’re able to execute those programs going forward. So it’s been, if you like, an iterative process, we have to bring some on, execute some, bring some on, execute some. But that funnel, if you like, that pipeline is now opening with the process development capabilities are expanded. So I would say, it was anticipated and I think we could equally anticipate the backlog will now grow again going forward.
Daniel Hart: And, Paul, I think, you’re probably also asking to backlog based on prior guidance 605 revenue recognition criteria vs. 606. If you look at prior revenue recognition of 605, our backlog went from $60M to $58M, with the difference being revenue and the new contracts that we’ve signed up during the period.
Roger Lias: So it wasn’t much of a drop-off, so we might comparing apples to oranges, Paul. ...And then, Tracy, you had the question for Tracy about the sort of flow of business.
PN: ”Yes. Well, more specifically, the 2 customers that you believe could be large customers. Are they from your existing lineup, or is it 2 new names?”
Tracy Kinjerski: We are signing new projects with new clients. I think that’s the question you’re asking. We have a lot of businesses coming in from existing clients, but the 2 I mentioned are new manufacturing opportunities for us. So they are significant and important part of our, I guess, our portfolio going forward. And just to kind of reiterate, since our East & West Coast business development representatives have come online, they both have significant experience in the industry and have been instrumental in their role in helping us increase visibility in the market and doubling the number of high qualified high-quality RFPs that we’ve received and proposals that we’re issuing as a result.
PN: ”And then lastly, Roger, what’s the state of the monoclonal antibody production market globally? Is production supply tight, or enough is around? What is the status of the market right now for mAb production? Scripts seem to be up 20%, pipelines are big, where are we with production capacity globally in U.S.?”
Roger Lias: We’re following the market in terms of the strong demand for antibodies, so the strong demand for manufacturing put simply. If you look at recent data, growth on the mammalian biologics CDMO space as a whole, which isn’t all antibodies, but it’s certainly driven primarily by antibody and antibody derivatives, depends whose statistics you read 15%, 16% annual growth. My view is, it’s a project-specific question really. For a specific project, you may well find it hard to find capacity or find capacity in the timelines you’re looking for or there might be geographic problems. But, I think in general across the industry, my personal opinion is, we’re about in balanced right now. We have seen huge investments in capacity, but it’s largely in Asia at the moment. And frankly for Avid, we don’t lose too much sleepover that; we have a customer from Asia, but we’re not active in that marketplace. So, it’s a very nuanced question, Paul. I mean, I think overall, we’re roughly in balanced, but if I were a customer with a need to enter the clinic in August of next year or something, I better darn well be getting my capacity reserved now, because you’re going to find it tough sledding if you don’t.
3. Steve Schwartz - First Analysis
SS: ”If we could continue with Paul’s question on the backlog, if I look at it sequentially, the 39M, you went about $10M through revenue, you ended up at $36M. It looks like the $6.3 million of project expansion orders is essentially what you booked new to the backlog in the quarter. Am I reading that correctly?”
Roger Lias: That’s correct.
SS: ”And if you look at the production forecast in the industry that runs out 12-18 mos., what is it about being shutdown for 3 weeks that would hamper your ability to book new work?”
Roger Lias: No, the shutdown had no impact on our ability to book new work, Steve, just to execute, obviously, manufacturing revenue-generating projects and recognize that revenue. The slight bottleneck we’ve had over the past quarter has been in process development. In fact, it’s precisely that it’s – the lab work that we need to bring these projects into manufacturing and, of course, it’s revenue-generating work in its own right as well. But the shutdown didn’t have any impact on our ability to book new work, in fact, just the opposite. Our clients obviously like to see that we’re taking care of routine maintenance. We were able to install backup power and all sorts of things, which customers like to see. So that’s a positive going forward.
SS: ”Maybe I just misinterpreted your comment that you expected the backlog build in the quarter to be light because of so many of these production-related activities that you had going on. So, I guess, I would have expected the backlog in this circumstance to build exceptionally, given that you could not produce and given that, especially since you’re still expecting the same level of revenue for the year and then to work down a higher backlog from Q2 through the 2nd-half of the year? I’m just trying to reconcile kind of what my perspective is vs. what I’m seeing in the numbers here with respect to revenue in the backlog, that’s all?”
Roger Lias: Essentially, we were able to – we didn’t bring on any new projects, so we were able to expand the value of existing projects to roughly the same value of the revenue we recognized during the quarter, roughly speaking, that’s what I meant by remaining roughly balanced.
SS: ”It’s nice to hear Tracy talk about the 2 new customers that are coming on potentially that you’re working with. If you were to secure projects from those new customers, can you give us some sense of the magnitude of what that would be? I mean, are we talking like $10M, $15M, again, just to give us some perspective relative to the existing backlog?”
Roger Lias: I don’t think we can right now, Steve. We hope that we’ll be able to make announcements of those when they’re consummated, if you like, when the final ink is dry on those contracts.
SS: ”Yes. Okay, that’s it for me.”
Roger Lias: They’re substantial. They’re material to our business, I think.
SS: ”Certainly understand, but thought I would ask. My next question is just relative to production risk. When you do the shutdowns like you did, what’s the involvement of the FDA? I would imagine, they’re involved, of course. And does that at all kind of reduce the risk going forward for the next couple of years that you have any 483s, things like that, because you’ve done this work and they’re involved?”
Roger Lias: The FDA actually isn’t involved. It’s entirely an internal exercise. I guess one way we’re looking at it is to stop the FDA from getting involved in future, because you’re doing your maintenance, so to the 2nd part of the question, it does reduce the probabilities that you’ll run into any future problems that’s the reason for doing it, I guess. But the FDA is not directly involved in this at all. This is an internal exercise.
SS: ”So, figuratively speaking, you’ve put yourself in a much better position for future inspections?”
Roger Lias: Yes, absolutely. And for execution, we need to maintain our equipment and make sure that we’re delivering to our customers as well. So yes, very much so.
SS: ”For this upstream lab suite that you’re going to be starting up here in the next couple of months, is that the type of thing you can pre-sell, or is Tracy have to pretty much wait until the lights are on? You’ve got bodies in there and then you can go out and sell it, how does that work?”
Tracy Kinjerski: So, Steve, actually, we haven’t stopped selling during this period. So, it doesn’t impact whether or not we can bring projects forward. So it’s not a bad thing from a business development perspective at all. And actually, it does set us up to put us in a really nice position going forward, as we have additional projects coming our way, but it hasn’t hindered our ability to find.
SS: ”My last question, I think is for Dan. This is with respect to cash from operations. For the past 5 quarters, you’ve earned about $7M in cash from operations. And now we are looking at the 2nd-half of the year, where it looks like, production is definitely going to step up, revenue generation is going to step up. Can you give us any kind of guidance on what cash from operations might look like for 3rd & 4th quarters?”
Daniel Hart: What information that I’ll provided is the burn rate we’ve had for the last 2 quarters involved some of the legacy discontinued operations spend that was still on our balance sheet that we needed to clean up. Going forward, as a pure-play CDMO, we’re going to start to see those wind down. And as our top line increases, our margins will continue to increase as we fill the idle capacity with and utilize that within our facilities and we’ll start to see a lot more of that drop to the bottom line.
ROGER LIAS (CEO) – CLOSING COMMENTS:
In closing, thank you, everybody, for your time today and your continued interest in Avid Bioservices, and, as always, I’d certainly like to thank our Board of Directors, in particular, our employees, our investors and our many other stakeholders for continuing to support the company as we pursue our goals for growth and value creation. So with that we’ll conclude the call. Thank you, and have a great afternoon.
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12-10-18: Avid Bioservices Reports Financial Results for First Quarter FY2019 Ended Oct. 31, 2018 and Recent Developments
GlobalNewsWire: https://tinyurl.com/y9yp8b23
-- FY2019 Projected Revenue of $51-55 Million Reaffired
-- Signed Project Expansion Orders for $6.3 Million with Current Customers
-- Successfully Executed Scheduled Broad Scale Facilities Maintenance and Upgrade Program
TUSTIN, Dec. 10, 2018: Avid Bioservices, Inc. (NASDAQ:CDMO & CDMOP), a dedicated biologics contract development and manufacturing organization (CDMO) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today announced financial results for Q2 of fiscal year (FY) 2019 ended October 31, 2018, and provided an update on its contract manufacturing operations, and other corporate highlights.
HIGHLIGHTS SINCE JULY 31, 2018
“During Q2 we have made very significant progress in both the commercial arena and in our operations as we continue to execute to plan. Re-launching the company as a dedicated biologics contract development and manufacturing organization is a challenging endeavor and I am exceptionally pleased with our progress,” said Roger Lias, Ph.D., Avid’s President and CEO. “On the commercial front we continue to see strong demand and we are making substantial progress in advancing both new and existing projects and improving our profitability. We are engaged in negotiations on new programs that will contribute revenue both during the current fiscal year and through FY2020 and, perhaps more importantly, many of our current customer programs expanded during the quarter. In addition to securing nearer-term business, our recently installed and highly experienced business development team is advancing longer lead time discussions with established biopharmaceutical clients for future commercial opportunities. To support the on-boarding of new projects and to deliver robust, compliant and cost-effective processes to our expanding and diversifying customer base, we continue to strengthen our process development function via the expansion and enhancement of our laboratories and the addition of state-of-the-art equipment. Process development services will become an increasingly important contributor to revenue and will build a strong pipeline of future manufacturing opportunities. It’s pleasing to be able to report revenue of over $10 million and a backlog of $36 million during a quarter in which revenue generating potential was limited by planned sequential maintenance shutdowns of both of Avid’s cGMP manufacturing facilities. These shutdowns, during which we undertook important maintenance activities and upgraded systems represent the most comprehensive overhaul program in the company’s history and were crucial to maintaining compliance; serving our current clients and winning new business, as well as minimizing operational and regulatory risk. Collectively our significant operational and commercial progress, along with diligent management of our financial resources position Avid Bioservices well for transition to cash generation and positive EBITDA.”
RECENT DEVELOPMENTS
1. Signed project expansion orders with current clients representing future revenue in the amount of $6.3 million during Q2.
2. Increased marketing and media activities during the quarter to enhance industry visibility. Received double the number of Requests for Proposal in Q2 2019 as compared to Q1 2019 and increased the number of proposals issued by 100% during the same period.
3. Sold remaining legacy R&D asset, r84, to Oncologie, Inc., for $1.0 million upfront. r84 is a pre-clinical novel therapeutic antibody asset targeting VEG-F that has demonstrated anti-tumor activity in animal models. Under the terms of the purchase and assignment agreement, Avid is eligible to receive up to an additional $21.0 million in development, regulatory and commercialization milestones, as well as low to mid-single digit royalties on net sales upon commercialization of products utilizing r84.
4. Continued progress with ongoing expansion and optimization of our process development capabilities and laboratory space, including:
5. Expanding the total available process development laboratory space to more than 6,000 square feet;
6. Upgrading the infrastructure and equipment within the existing process development laboratories;
7. Implementing new state-of-the-art technologies and equipment designed to facilitate efficient, high-throughput development of upstream and downstream manufacturing processes.
8. Successfully executed the most comprehensive sequential maintenance overhaul in the company’s history, to best serve our existing customers and entice new business.
FINANCIAL HIGHLIGHTS AND GUIDANCE
1. The company is reaffirming revenue guidance for the full FY 2019 of $51-55 million.
2. The revenue backlog as of October 31, 2018 was $36 million, the majority of which we expect to recognize in FY 2019.
3. Contract manufacturing revenue from Avid's clinical and commercial biomanufacturing services was $10.2 million for the Q2/FY2019 compared to $12.8 million for the Q2/FY2018. The decline in the Q2/FY2019 was primarily due to decreased demand from our two lead customers as previously disclosed. In addition, our revenues were impacted by the scheduled facility maintenance and upgrade shutdown.
4. Gross margin for Q2 was a positive 3%, a significant improvement compared to a gross margin of negative 27% during the prior year period. The increase in gross margin for the quarter was primarily attributed to our product mix resulting in improved overhead efficiencies.
5. Selling, general and administrative expenses for the Q2/FY2019 were $2.8 million, compared to $3.6 million for the Q2/FY2018. The decrease in the Q2/FY2019 was primarily due to reductions in facility costs and legal, accounting and other professional fees.
6. For the Q2/FY2019, the company recorded consolidated net loss attributable to common stockholders of $2.9 million, or $0.05 per share, compared to a consolidated net loss attributable to common stockholders of $14.1 million, or $0.31 per share, for the Q2/FY2018.
7. Avid reported $32.7 million in cash and cash equivalents as of October 31, 2018, compared to $42.3 million on April 30, 2018.
More detailed financial information and analysis may be found in Avid’s Quarterly Report on Form 10-Q, which will be filed with the SEC today. [ https://tinyurl.com/y8boxjys ]
Conference Call
Avid will host a conference call and webcast this afternoon, December 10, 2018, at 4:30 PM EST (1:30 PM PST). To listen to the conference call, please dial (877) 312-5443 or (253) 237-1126 and request the Avid Bioservices conference call. To listen to the live webcast, or access the archived webcast, please visit: http://ir.avidbio.com/events.cfm .
ABOUT AVID BIOSERVICES, INC.
Avid Bioservices is a dedicated contract development and manufacturing organization (CDMO) focused on development and cGMP manufacturing of biopharmaceutical products derived from mammalian cell culture. The company provides a comprehensive range of process development, high quality cGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With 25 years of experience producing monoclonal antibodies and recombinant proteins in batch, fed-batch and perfusion modes, Avid's services include cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission and support. The company also provides a variety of process development activities, including cell line development and optimization, cell culture and feed optimization, analytical methods development and product characterization. http://www.avidbio.com
Forward-Looking *snip*
AVID BIOSERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
(in thousands, except share and per share information)
Three Months Ended
October 31, 6 mos. Ended
October 31, 2018 2017 2018 2017
Contract manufacturing revenue $10,178 $ 12,782 $ 22,767 $ 39,859
Cost of contract manufacturing 9,844 16,242 21,241 36,690
Gross profit (loss) 334 (3,460 ) 1,526 3,169
Operating expenses:
Selling, general and administrative 2,816 3,596 6,031 7,449
Restructuring charges — 1,258 — 1,258
Total operating expenses 2,816 4,854 6,031 8,707
Operating loss (2,482 ) (8,314 ) (4,505 ) (5,538 )
Interest and other income, net 119 13 181 37
Loss from continuing operations before income taxes $ (2,363 ) $ (8,301 ) $ (4,324 ) $(5,501 )
Income tax benefit 173 — 173 —
Loss from continuing operations $ (2,190 ) $ (8,301 ) $ (4,151 ) $ (5,501
Income (loss) from discontinued operations, net of tax 739 (4,323 ) 739 (8,328 )
Net loss $ (1,451 ) $ (12,624 ) $ (3,412 ) $ (13,829 )
Comprehensive loss $ (1,451 ) $ (12,624 ) $ (3,412 ) $ (13,829 )
Series E preferred stock accumulated dividends (1,442 ) (1,442 ) (2,523 ) (2,523 )
Net loss attributable to common stockholders $(2,893) $ (14,066 ) $ (5,935 ) $ (16,352 )
Basic and diluted weighted average common shares outstanding 56,008,541 45,097,474 55,889,325 44,935,600
Basic and diluted net (loss) income per common share attributable to common stockholders:
Continuing operations $ (0.06 ) $ (0.21 ) $ (0.12 ) $ (0.18 )
Discontinued operations $ 0.01 $ (0.10 ) $ 0.01 $ (0.18 )
Net loss per share attributable to common stockholders $ (0.05 ) $ (0.31 ) $ (0.11 ) $(0.36 )
AVID BIOSERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)
October 31, 2018 April 30, 2018
Unaudited
ASSETS
Current assets:
Cash and cash equivalents $ 32,694 $ 42,265
Trade and other receivables 4,197 3,754
Contract assets 5,092 —
Inventories 9,736 16,129
Prepaid expenses 774 679
Assets of discontinued operations — 5,000
Total current assets 52,493 67,827
Property and equipment, net 26,279 26,479
Restricted cash 1,150 1,150
Other assets 302 304
Total assets $ 80,224 $ 95,760
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 3,223 $ 1,909
Accrued payroll and related costs 1,829 2,564
Contract liabilities 17,307 27,935
Other current liabilities 433 905
Liabilities of discontinued operations 416 4,550
Total current liabilities 23,208 37,863
Deferred rent, less current portion 2,126 2,159
Capital lease, less current portion 93 —
Commitments and contingencies
Stockholders’ equity:
Preferred stock—$0.001 par value; 5,000,000 shares authorized; 1,647,760 shares issued and outstanding at October 31, 2018 and April 30, 2018, respectively 2 2
Common stock—$0.001 par value; 150,000,000 shares authorized; 56,063,488 and 55,689,222 shares issued and outstanding at October 31, 2018 and April 30, 2018, respectively 56 55
Additional paid-in capital 614,541 614,810
Accumulated deficit (559,802) (559,129)
Total stockholders’ equity 54,797 55,738
Total liabilities and stockholders’ equity $ 80,224 $ 95,760
CONTACTS:
• Stephanie Diaz (Investors) Vida Strategic Partners 415-675-7401 sdiaz@vidasp.com
• Tim Brons (Media) Vida Strategic Partners 415-675-7402 tbrons@vidasp.com
- - - - - - - -
From 10-Q header: “As of Dec 3, 2018, there were 56,067,867 shares outstanding.”
- - - - - - - - - - - - - - - - -
Latest 10K 4-30-18 iss. 7-16-18 https://tinyurl.com/ydc8vew5 PR: https://tinyurl.com/y93fux9h (Cash 4-30-18=$42.3mm)
Latest 10Q 10-31-18 iss. 12-10-18 https://tinyurl.com/y8boxjys PR: https://tinyurl.com/y9yp8b23 (Cash 10-31-18=$32.7mm)
ALL SEC filings for PPHM: http://tinyurl.com/6d4jw8
= = = = = = = = = = = = = = = = = = = = = = = = = = = =
Updated PPHM REVS-BY-QTR TABLE, now thru FY19'Q2(qe 10-31-18), per the 10-Q (https://tinyurl.com/ycfrgsjm ) issued 12-10-18.
• Total Avid Revs since May’03: $318.3mm
• 12-10-18: FY'19 (May'18-Apr'19) Avid revs guidance $51-55mm (committed B/L=$36M at 10-31-18).
• Inventories at 10-31-18 total $9.7mm, UP from $9.2mm at 7-31-18.
Avid’s website: http://www.avidbio.com
AVID GROSS PROFITABILITY BY QTR: DEFER CUST
QTR (1000’s) Rev$ COGS$ Prof$ GP% REV$ INVEN$ DEP.
FY13Q1 7-31-12 4,135 2,024 2,111 51% 6,056 5,744 10,224
FY13Q2 10-31-12 6,061 3,703 2,358 39% 6,221 5,426 8,500
FY13Q3 1-31-13 6,961 3,651 3,310 47% 5,061 4,635 6,729
FY13Q4 4-30-13 4,176 3,217 959 23% 4,171 4,339 8,059
FY14Q1 7-31-13 4,581 2,670 1,911 42% 4,164 5,679 8,528
FY14Q2 10-31-13 7,354 4,195 3,159 43% 3,468 4,033 7,658
FY14Q3 1-31-14 3,885 2,416 1,469 38% 4,329 5,224 8,646
FY14Q4 4-30-14 6,474 3,829 2,645 41% 5,241 5,530 5,760
FY15Q1 7-31-14 5,496 3,583 1,913 35% 4,670 5,998 6,226
FY15Q2 10-31-14 6,263 4,139 2,124 34% 3,612 5,379 7,549
FY15Q3 1-31-15 5,677 3,113 2,564 45% 5,752 6,148 8,311
FY15Q4 4-30-15 9,308 4,758 4,550 49% 6,630 7,354 11,363
FY16Q1 7-31-15 9,379 4,608 4,771 51% 8,291 10,457 9,599
FY16Q2 10-31-15 9,523 4,741 4,782 50% 9,688 12,554 14,935
FY16Q3 1-31-16 6,672 3,896 2,776 42% 15,418 15,189 22,433
FY16Q4 4-30-16 18,783 9,721 9,062 48% 15,418 15,189 24,212
FY17Q1 7-31-16 5,609 3,062 2,547 45% 21,531 25,274 21,731
FY17Q2 10-31-16 23,370 15,441 7,929 34% 17,980 25,924 26,928
FY17Q3 1-31-17 10,747 7,974 2,773 26% 26,367 33,829 26,210
FY17Q4 4-30-17 17,904 11,782 6,122 34% 28,500 33,099 17,017
FY18Q1 7-31-17 27,077 20,448 6,629 24% 13,433 24,235 14,322
FY18Q2 10-31-17 12,782 16,242 -3,460 -27% 7,473 16,518 13,138
FY18Q3 1-31-18 6,819 10,951 -4,132 -61% 6,633 14,218 17,602
FY18Q4 4-30-18 6,943 8,904 -1,961 -28% 10,922 16,129 17,013
FY19Q1 7-31-18 12,589 11,397 1,192 9% --,--- 9,168 --,---*
FY19Q2 10-31-18 10,178 9,844 334 3% --,--- 9,736 --,---*
*7-31-18 10Q: “prior-yr amts related to deferred revenue
& cust deposits have been reclass’d to contract liabilities.”
...q/e 4-30-18: contract-liabilities=27,935 <=reclassified
...a/o 7-31-18: contract-liabilities=17,994
...a/o 10-31-18: contract-liabilities=17,307
FY13 TOTAL: 21,333 12,595 8,738 41%*
FY14 TOTAL: 22,294 13,110 9,184 41%*
FY15 TOTAL: 26,744 15,393 11,151 42%*
FY16 TOTAL: 44,357 22,966 21,391 48%*
FY17 TOTAL: 57,630 38,259 19,371 34%*
FY18 TOTAL: 53,621 56,545 -2,924 -5%*
*Avid Net-Profit(Selling/G&A) not split out from PPHM-Corp. in the fin’s.
AVID TOTAL REV’s BY YEAR):
FY04 4-30-04 3,039 (Avid-Revs didn’t incl. Avid’s Gov’t work)
FY05 4-30-05 4,684
FY06 4-30-06 3,005
FY07 4-30-07 3,492
FY08 4-30-08 5,897
FY09 4-30-09 12,963
FY10 4-30-10 13,204
FY11 4-30-11 8,502
FY12 4-30-12 14,783
FY13 4-30-13 21,333
FY14 4-30-14 22,294
FY15 4-30-15 26,744
FY16 4-30-16 44,357
FY17 4-30-17 57,630
FY18 4-30-18 53,621
**TOTAL: 295,548 (5/1/2003–4/30/18)
.
QTLY. NET PROFIT/LOSS BY QTR:
(“attributable to common stockholders”; ie, incl. PREF Div’s**)
**2-11-14: PPHM Raises $16.2M, 700k Pref. Shares w/10.5% DIV.
FY16Q1 7-31-15 -15,101,000
FY16Q2 10-31-15 -14,578,000
FY16Q3 1-31-16 -18,227,000
FY16Q4 4-30-16 -13,264,000
FY17Q1 7-31-16 -12,437,000
FY17Q2 10-31-16 -4,498,000
FY17Q3 1-31-17 -9,216,000
FY17Q4 4-30-17 -6,714,000
FY18Q1 7-31-17 -2,647,000
FY18Q2 10-31-17 -14,066,000
FY18Q3 1-31-18 -12,446,000
FY18Q4 4-30-18 +1,578,000 <=includes $9,154,000 income from disc. operations.
FY19Q1 7-31-18 -3,403,000
FY19Q2 10-31-18 -2,893,000
Period Halozyme Coherus-BioSci. Other-Custs
FYE 4-30-14 91% 8%
FYE 4-30-15 79% 9%
FYE 4-30-16 69% 26% 5%
FYE 4-30-17 58% 26% 16%
FYE 4-30-18 55% 22% 23%
...(cust. Splits not given in 7-31-18+ 10Q’s)
- - - - - - - - CDMO’s Fiscal Qtr’s (FY runs May – April):
FY’16-Q1 = q/e 7-31-15 – rep. 9-9-15 Wed (after mkt)
FY’16-Q2 = q/e 10-31-15 – rep. 12-10-15 Thu (after mkt)
FY’16-Q3 = q/e 1-31-16 – rep. 3-9-16 Wed (B4 mkt)
FY’16-Q4 = q/e 4-30-16 – rep. 7-14-16 Thu (after mkt)
FY’17-Q1 = q/e 7-31-16 – rep. 9-8-16 Thu (after mkt)
FY’17-Q2 = q/e 10-31-16 – rep. 12-12-16 Mon (after mkt)
FY’17-Q3 = q/e 1-31-17 – rep. 3-13-17 Mon (after mkt)
FY’17-Q4 = q/e 4-30-17 – rep. 7-14-17 Fri (after mkt)
FY’18-Q1 = q/e 7-31-17 – rep. 9-11-17 Mon (after mkt)
FY’18-Q2 = q/e 10-31-17 – rep. 12-11-17 Mon (after mkt)
FY’18-Q3 = q/e 1-31-18 – rep. 3-12-18 Mon (after mkt)
FY’18-Q4 = q/e 4-30-18 – rep. 7-16-18 Mon (after mkt)
FY’19-Q1 = q/e 7-31-18 – rep. 9-10-18 Mon (after mkt)
FY’19-Q2 = q/e 10-31-18 – rep. 12-10-18 Mon (after mkt)
= = = = = = = = = = = =
“Going Concern” stmt. ELIMINATED from 10-K pub. 7-11-13; RE-INSTATED in 10-K pub. 7-14-17…
2012: 4-30-12 10-K iss. 7-16-12 Pg.68: “As more fully described in Note 2, the Company’s recurring losses from operations & recurring neg. cash flows from operating activities raise substantial doubt about its ability to continue as a going concern.” http://tinyurl.com/79o57b2
2013 & 2014 & 2015 & 2016 10-K's: http://tinyurl.com/p58jcbw etc...=> (((NO GOING CONCERN STATEMENT INCLUDED.)))
2017 7-14-17: “Going Concern” re-instated in the 4-30-17 10-K (pg.13) http://tinyurl.com/ycxu4l5n
CASH a/o 1-31-14: $63.2mm
CASH a/o 2-15-14: $79.7mm
CASH a/o 4-30-14: $77.5mm
CASH a/o 6-30-14: $78.3mm
CASH a/o 7-31-14: $73.3mm
CASH a/o 10-31-14: $64.4mm
CASH a/o 1-31-15: $55.2mm
CASH a/o 4-30-15: $68.0mm
CASH a/o 7-31-15: $59.0mm
CASH a/o 10-31-15: $72.0mm
CASH a/o 1-31-16: $67.5mm
CASH a/o 4-30-16: $61.4mm
CASH a/o 7-31-16: $44.2mm
CASH a/o 10-31-16: $49.5mm
CASH a/o 1-31-17: $41.5mm
CASH a/o 4-30-17: $46.8mm
CASH a/o 7-31-17: $37.3mm
CASH a/o 10-31-17: $27.7mm
CASH a/o 1-31-18: $17.9mm
CASH a/o 2-28-18: $41.7mm
CASH a/o 4-30-18: $42.3mm
CASH a/o 7-31-18: $37.5mm
CASH a/o 10-31-18: $32.7mm
CDMO - O/S Shares History (’06–curr.)
Click here for 4/30/06–12/8/16 Peregrine Pharm. share history: https://tinyurl.com/y76cbyt5
**PPHM shares were 1:5 R/S eff. 10-19-09 (~237mm/$.64=>~47.4mm/$3.20) http://tinyurl.com/ykuw588
**PPHM shares were 1:7 R/S eff. 7-10-17 (315mm/$.606=>45mm/$4.24) http://tinyurl.com/ycohqn6j
1-31-17: 271,068,464 +13,926,930 (1-31-17 10Q iss. 3-13-17)
3-10-17: 297,709,478 +26,641,014 (“ “ “)
4-30-17: 44,014,040(x7)=308,098,280 +10,388,802 (4-30-17 10K iss. 7-14-17)
7-10-17: 45,069,188 +1,055,148 (“ “ “)
7-31-16: 45,094,154 +24,966 (7-31-17 10Q iss. 9-11-17)
8-25-17: 45,096,081 +1,927 (8-25-17 Amended 10K http://tinyurl.com/yb5jq7vc )
9-6-17: 45,096,081 nochg (7-31-17 10Q iss. 9-11-17)
10-31-16: 45,172,632 +76,551 (10-31-17 10Q iss. 12-11-17)
11-27-17: 45,210,608 +37,976 (14A/Proxy iss. 12-7-17 https://tinyurl.com/y7qprpg9 )
12-6-17: 45,212,760 +2,152 (10-31-17 10Q iss. 12-11-17)
1-8-18: 45,253,038 +40,278 (2-8-18 13D https://tinyurl.com/ya43sc3r )
1-31-18: 45,257,180 +4,142 (1-31-18 10Q iss. 3-12-18)
...2-20-18: Avid Raises ~$21.8M net, selling 10,294,445sh.@$2.25 (underwriter: Wells Fargo)
…... 8-K: https://tinyurl.com/ya3nenth 424B5: https://tinyurl.com/ycpshgxl
3-7-18: 55,552,233 +10,295,053 (1-31-18 10Q)
4-30-18: 55,689,222 +133,989 (4-30-18 10K)
7-10-18: 55,793,107 +103,885 (4-30-18 10K)
9-5-18: 56,001,456 +208,349 (7-31-18 10Q)
10-31-18: 56,063,488 +62,032 (10-31-18 10Q)
12-3-18: 56,067,867 +4,379 (10-31-18 10Q)
Recent CDMO News
- Avid Bioservices Reports Financial Results for Third Quarter Ended January 31, 2024 • GlobeNewswire Inc. • 04/24/2024 09:25:33 PM
- Avid Bioservices Announces Receipt of Deficiency Notice from Nasdaq Regarding Late Form 10-Q • GlobeNewswire Inc. • 03/20/2024 11:00:10 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/07/2024 11:30:11 AM
- Avid Bioservices Announces Pricing of Private Placement of Convertible Notes • GlobeNewswire Inc. • 03/07/2024 04:58:48 AM
- Avid Bioservices Announces Proposed Private Placement of Convertible Notes • GlobeNewswire Inc. • 03/06/2024 09:32:07 PM
- Avid Bioservices Announces Certain Preliminary Financial Results for Third Quarter Ended January 31, 2024 • GlobeNewswire Inc. • 03/06/2024 09:31:28 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/06/2024 09:30:18 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 01/26/2024 09:57:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/13/2024 12:34:35 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 12:39:18 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 12:38:30 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 12:37:38 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 12:36:27 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/12/2024 12:35:47 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/11/2024 12:56:02 AM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 01/08/2024 09:32:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/04/2024 12:56:18 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/04/2024 12:55:07 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/04/2024 12:53:58 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/04/2024 12:51:57 AM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 12/19/2023 09:05:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/19/2023 12:34:08 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/19/2023 12:33:03 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/19/2023 12:32:11 AM
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