Avid Bioservices Inc (CDMO)

[RRdog]

Ubuy2w,

That is a very intelligent question because it leads you to another valuation metric. I am not suggesting that an acquisition is in the offing however:

Assuming gross carry forward losses of better part of 300mm, if PPHM were acquired by a profitable US pharma and assuming a 35% corporate rate, the pharma could save about 105mm in taxes. That alone is worth about twice the market cap of PPHM. I'm sure an accountant could better fine tune this and comment on the amount of time over which the savings would be distributed but the general idea is about right.

Regards,
RRdog