Avid Bioservices Inc (CDMO)

[bfiest]

This focus on later stage products was confusing to me since Nick has described drug manufacturing as a sticky business. Sticky in the sense that it is hard to transfer drug manufacturing to another CDMO once you are established with your original CDMO. I did some research to help me understand this strategy. There are a % of drugs manufactured by smaller CDMO’s that don’t have the capability to handle the higher volume demands of products moving to phase 3 and beyond to commercialization. We now have that capability and are actively pursuing these opportunities. Now it makes sense. Seems like a viable strategy. Bigger volume opportunities to fill capacity quicker.