Avid Bioservices Inc (CDMO)

[RRdog]

This Merrill report on INHX indicates they are testing their drug in combo with "interferon" and ribavirin.

They "would like" to do future interferon free cohorts??? but this may have other problems. IMO They need an interferon sub.

As a reminder PPHM is testing Bavi + ribavirin vs Hepc and of course no interferon in sight. It will be interesting to see what PPHM results are compared to INHX.

This report also talks about a $6/sh target for INHX roughly in line with other peer company valuations (i.e. co's primarily involved in Hepc) of about $400mm market cap. (INHX now trading at $8/ sh far in excess of 400mm)

IMO PPHM will be unable to target the $400mm plateau until the ATM is capped with some form of alternate financing or non dilutive dollar deal infusion. Were the ATM to be shelved, a $400mm cap area would seem (at minimum) a logical basing station IMO relative to the rest of the universe.

Regards,
RRdog