Avid Bioservices Inc (CDMO)

[jakedogman1]

Re: Financing

I can see this scenario playing out. PPHM does a deal w/ a BP for Avid, which so happens to be one of the BP's interested in buying PPHM. All of a sudden production runs get delayed, production runs are incorrectly mixed, shipments delayed, a fire, or a study is complete and the supplier determines the product was defective -- you name it; all honest mistakes.

BP knows PPHM needs the product to complete the studies to create value and time is not on PPHM's side. Let's see, a $20 mil deal determines the value on several hundred million dollars. BP couldn't care about getting a $2 to $3 mil annual rev on a $20 mil investment when they can influence a several hundred mil deal (or more). Or they don't want PPHM's pipeline to compete so they hinder it.

Don't want to sound like a cynic but I think the PPHM mgmt team has been a little naive as it relates to financing.