Avid Bioservices Inc (CDMO)

[bfiest]

It’s what they said in the last quarterly call that caused this decline. They projected sales to be flat this fiscal year. Their reason was funding drying up for biotech start-ups. Thus they changed strategy focusing more on later stage products where funding is far more abundant and opportunity is found with Biotech companies which have contracted with smaller CDMO’s that don’t have the capacity to bring a product to market. They will still pursue start-ups where opportunity exists but now they are hitting the market on 2 fronts. I believe it to be a necessary change in strategy.