Avid Bioservices Inc (CDMO)

[RRdog]

Re Avastin decision:

In general, IMO, if the final Avastin decision is in line with the committee 6-0 decision to withdraw from breast cancer there are three possible positive long term effects for PPHM.

1. More room for breast cancer alternative drugs

2. More room for the FDA to continue with accelerated approval of new drugs because they are demonstrating the political spine to withdraw such an approval if subsequent use and trial do not bear out the AA. If the FDA were blocked from correcting an
AA action it would be much more difficult to achieve AA status.

3. It appears clear that the revenues from Avastin have peaked and are declining. Avastin represented about 20% of the value of the Roche buy of DNA. Roche/Genentech may become more aggressive in acquiring new product to plug any revenue leaks. Since personnel at PPHM are well known to Roche, this may work well for PPHM in the long run.
There is some opinion that Garnick is not at PPHM by random selection and has had a good idea where he was ultimately going to find a partner before working for PPHM. The problems with Avastin both in efficacy and in AE's have been long known among
knowlegable people in the biotech industry.