Cytodyn Inc (CYDY)

[MikefromWA]

Typical antibody manufacturing is very expensive and failure rates can easily exceed 10%. Coupled with the raw material costs, plant time and duration of a production campaign, the first few runs of a new product launch are very risky.

Some CMO structure their contracts such that payment is due between bulk production and final fill. This places the risk of complex production and timing on the CMO. Once the campaign is finished and released, the pressure shifts to payment which needs to occur to fully release the product in order to hit the schedule window at the final filling facility...

I am excited about this warrant activity because if CYDYs contract is structured in this way (I suspect it is) it means that we are closer to resupply than I thought... the potential implications are that the tricky steps are behind us and the fill could occur potentially in low risk weeks not high risk months.

Just my opinion...