Avid Bioservices Inc (CDMO)

[bfiest]

I know we have been purposely kept in the dark concerning any progress Bavi is making in clinical trials. Many don’t even want to discuss it which has likely been the company’s objective all along. They want us to forget about Bavi. So much so that OncXerna’s website has been down since last Nov. for “maintenance”. And of course the phone number listed for OncXerna no longer works. Now I know something about site maintenance. It doesn’t last 4 months and if for some odd reason it does — you never take down the original site while such maintenance is occurring. They want nothing out there. That is obvious to me. I’ve talked to Rolf Brekken about Bavi and he says that he also is wondering why it’s taking so long to progress Bavi through trials and come to a decision. But he is in the dark also. So he couldn’t offer any further color on the subject. I’m trying to get a hold of the current lead investigator as we speak.

OncXerna going underground with no published website and a non-working phone number occurred coincidentally after I asked the SEC to make public the specific timeline for Bavi royalties which amounts to 96 million accumulative prior to approval as it completes certain phases of specific trials. It is these phases of current trials which is the information that has not been made public.

And if Bavi is approved Licensee shall pay to licensor royalty fees as follows:

A: an amount equal to 9% of aggregate net sales (in all countries and territories) of up to $100,000,000 of each product;

B: An amount equal to 11% of aggregate net sales (in all countries and territories) from $100,000,001 to $200,000,000 of each product;

C: An amount equal to 13% of aggregate net sales (in all countries and territories) from $200,000,001 to $500,000,000 of each product;

D: An amount equal to 14% of aggregate net sales (in all countries and territories) from $500,000,001 to $1,000,000,000 for each product;

E: An amount equal to 16% of aggregate net sales (in all countries and territories) equal to or greater than $1,000,000,001 for each product.

The latest phase 2 results for Bavi in conjunction with Pembrolizumab “Keytruda” can be found here.

https://www.onclive.com/view/bavituximab-plus-pembrolizumab-elicits-responses-in-untreated-advanced-hcc

I am not saying Bavi will be approved or even be eligible for royalty payments. That has yet to be announced. I am just wondering why Avid’s BOD and management purposely seem to keep us in the dark on this subject. Especially now since Royalty money would be highly valued during this crisis. And of course if there is a low ball bid for the company I’m sure Bavi potential will not even be mentioned.

Unfortunately the person responsible at the SEC refused to make trial specifics public. The reason being it would compromise any future contracts with other companies that Avid may be involved in. I certainly could not understand and argued against this since Avid is NOT in the drug creation business. But she would not budge. My argument was it has nothing to do with their competitiveness and everything to do with the potential value that Bavi may hold to the company and its shareholders — which at the time of any potential low ball sale — will likely not even be mentioned. Not to say anything for any royalties Avid may accrue by meeting certain milestones. That is money that would certainly come in handy at this time.

I felt it important that everyone know this at this delicate time in Avid’s history. Again I am not presuming value of any kind. I’m just wondering why the company is going to such lengths to keep things quiet about any progress Bavi is making or any value Bavi may hold at this current time. And in my opinion I’m wondering why it’s taking so long for OncXerna to come to a decision on Bavi and progress it to phase 3 trials — or cut it altogether.