Avid Bioservices Inc (CDMO)

[bfiest]

What’s obvious is the timing for expansion completion couldn’t be worse in terms of market demand. Yes it’s a tough market but not critical with things looking up in the second half of 2023 and all of 2024.

Strategically Avid is focusing on winning later stage business where investment resources have been focused and where accounts are more robust with higher volume demand and more immediate possibilities for large scale commercialization. And of course they have dabbled in the strategic partnering approach with their latest deal being with CIRM. Personally I would like to see them expand this approach in the Biologics division and create win win relationships that help fill their capacity coffers more quickly and more efficiently.

Bottom line is many successful larger companies faced similar challenges at different times of their business cycle. It’s never a clean process. What’s critical is Avid’s What’s Important Now strategic approach that shows they have what it takes to overcome these challenges and become stronger — not only in spite of — but because of the adversity.

As far as the stock price the market is definitely pricing in worse case scenario — at least short term. Personally I’m taking advantage of these deflated prices — something each investor must decide for themselves. I envision Avid becoming an attractive mid sized firm poised for buyout within the next couple years. Time to place your bets?