Avid Bioservices Inc (CDMO)

[jbainseky]

It is quite obvious that Nick was not caught off guard by a slow filling of capacity. Basically the everyday investor wasn't aware of the shift towards later stage work. As Nick said in his question response during the quarterly CC

And I think that, for those of us that are in the market on a day-to-day basis, is that that take that there’s just unfortunately a natural time phase that that takes to execute and once you’ve completed the PPQ campaign, you have to file that data along with the clinical data to the FDA and get approval and then the commercial volumes come.

And of course, one of the other issues is, of course, nobody’s going to put a PPQ campaign together with a supplier that doesn’t have that capacity to meet the commercial demand. So it’s really just a transition of the business as we’ve been trying to highlight from what was originally a clinical company that was with a significant large commercial demand into one that’s got a very much more diverse customer base with a significant number of late phase programs, which we’re just trying to get executed, get that data off and then, obviously, I look forward to at least an industry average of commercial approvals that we can then execute against.

And actually, we couldn’t have asked for a better situation than we’ve got right now, which is that as we’re concerning one of those in, they’ve already got approval. So that’s about as fast as it ever goes. So looking forward to that one.

So they have an approval and will be filling that need. It would be nice to know what the other "significant number of late phase programs" AVID is signed on to. I, for one, believe approval times with the FDA are going to shorten significantly with the use of AI, both in generating data as well as evaluating results.

Value wise we are sitting just over 2 for a PS ratio, in an industry with an average over 10. A couple approvals and increased sales and you can do the math for the PPS.

FFTT
JBAIN