Avid Bioservices Inc (CDMO)

[exwannabe]

Jessie, it looks like we are in agreement on how PPHM has enough time to finish a Phase 3 trial under the loan terms.

How do you estimate that?

Assuming they draw the full $30M, the loan terms state that ther pay down the principal in 30 equal payements between 9/13 and 3/16. That means by 12/14 they would have aprox $10M of the loan left in the bank from the loan. By 9/15, nothing.

A P3 trial would start about a year from now, they are not ready to launch one now. As they state in the PR for the loan the process would be:

. P2 data
. Disussions with FDA on approval path
. P3 Design (and the loan PR talks about being ready to start that by 3/13).

From then they need to complete the design, get an FDA signoff, and initiate the actual trial.

And the trial itself? 2 years from initiation would be lightspeed.

The loan certainly does provide some breathing room now so they can go forward w/o being either under the gone or forced to dullute at terms they might not like. That is good.

But it is not enough to get P3 data.