Avid Bioservices Inc (CDMO)

[until2000]

Yesterday I recieved a reply to the letter I send management. It is indeed from IR at biocompartners, but they did send it along to King and company.

As promised, I am sharing their response.

"Thank you for your long and thoughtful communication, which we have shared with Mr. King and the senior management team. A few thoughts on several of your points.
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>First, bavituximab and Cotara are still in a relatively early stage of development. As we continue to generate positive patient data, we anticipate that our overall profile and coverage in the general media will increase. You should note too that we already are obtaining relatively strong coverage in industry trade and medical media.
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>While some investors perceive that earlier stage drugs sometimes obtain extensive coverage in the general media, that has rarely the case for a number of years now. For the few that do, the increase in share price generated by this type of promotion is almost always short lived. What builds lasting shareholder value is quality clinical data from mid and late stage clinical trials, and partnering deals with respected companies.
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>We are hopeful we will be able to deliver on both these fronts, but additional clinical data is essential if we are to do so. To generate that data requires capital and other resources and Peregrine must be listed on Nasdaq if it is to be able to continue on to the later stage trials we are now ready to undertake. Therefore the company is prepared to implement a reverse split if needed to maintain its Nasdaq listing. There are many examples of companies that have done well after reverse splits provided that their fundamentals and prospects were strong. If a reverse split becomes necessary, we are optimistic we can be one of the success stories too.
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>Thank you for your long-time and enthusiastic support of our company and its promising new drug pipeline."


I liked the thoughtfulness of the response, I still don't like the idea of a reverse split. I believe it lights up the screen of every hedge fund.

We shall see.