Avid Bioservices Inc (CDMO)

[bfiest]

Bfiest
In all fairness this is the reply I got to the 500 million dollar deal.

This $500M represents the infamous "biobucks" we heard so much about in the past decade or so. Please read the not-so-fine print -- the company is getting $18.7M a year for 2-years. Full stop.

Only if they meet specific milestones will they get a penny more. The chances that they will get the full $500M [meeting many many milestones in multiple programs in multiple territories] is virtually nil. The risk to J&J is small here -- less than $38M. Is $38M upfront nice to have? Yes. Is it $500M? No.

Pharma companies typically do these types of early stage deals in areas of small molecule drug research where they have a high level of interest and their own programs are lagging. They are not typical deals and they almost never produce the biobuck transfers of cast touted by the press releases. As a clinical stage monoclonal antibody company, we are operating in a different market segment for deal-making.

Thank you for sharing your perspective