You clearly do not understand how biotech works. If they set-up the factory without a CDMO, the costs would likely be even higher. In this instance it is in their factory, these are contractors, so benefits and other issues are on Advent. Further, because of the easy regional development authority financing of Sawston’s development, NWBO has responsibility to sell services to other companies. Advent is doing that and effectively the facility can be subsidized by whatever business comes in.
The fact is, it is modular. Those employees are on the payroll of Advent. There are set costs which NWBO would have no matter what but because of the lease and possibly other factors, for Advent, costs can be spread potentially to other potential customers and NWBO being the owner of the key infrastructure and facilities, benefits. It’s a win-win-win for the companies and the region.
The fact is, traditionally, in the past, companies needed their commercial manufacturing facility set-up up front, and this cost billions of dollars in the earliest period of development of such companies. CDMO’s allowed those requirements to be eased, for specialization and know how to be aggregated and for costs to be shared to some degree amongst developing firms. They did not need to create full fledged factories before their clinical trials even started. Costs like that were horrible. I recall a friend telling me about his experience with a blood substitute company early on, many years ago. Now the product may not have been ready, but just to get to clinical trials was an ordeal.
You complain a lot about Advent, but the reality is that it was Cognate’s subsidiary and she got it as her payout when CRL bought Cognate and it allowed for immense flexibility and symbiosis that benefits everyone. Further, the regulators understand that it is a modular relationship and not what shorts claim, and to them, their understanding is what matters, not the ravings of people on bulletin boards who trade the stock up and down and praise and then complain depending on which way they are trading this week.
I own NWBO. My posts on iHub are always posted expressly as just my humble opinion (IMHO) and none are advice, just my opinion. I am NOT a financial advisor, and it is assumed that everyone is responsible for their own due diligence.
