Avid Bioservices Inc (CDMO)

[keep_trying]

Firechief, thanks for your insightful response. One reason why I think PPHM has opened up a path for going it alone is that they need to do so to close a good partnering or buyout deal.

You suggest Oxford needs an alternate source of repayment of the loan to PPHM and I fully agree. I also agree that a Pharma deal is PPHM's preferred track. However, Oxford's alternate source could be provision of funding directly to PPHM for the FDA approved Phase 3 Bavi trial in exchange for ??? in share holder equity.

The amount of funding PPHM needs to keep the lights on and do a Phase 3 Bavi trial over the next couple years is coming into the zone of what an investment cash for equity deal could cover, even though PPHM carries financial bumps and bruises from bringing Bavi through to the Phase 2 trial interim results we expect to hear about this week. PPHM still can walk from the table if Pharma negotiations get funky and ask Pharma back to the table when PPHM holds more aces. If Pharma companies are still not willing to deliver Bavi value in an agreement, what other choice does PPHM have today that they couldn't have signed off on a year or two back? There is no sense in PPHM having successfully run through the treatment development risk gauntlet to just turn the reins over to Pharma without getting value realization associated with a Bavi product ready to go into Phase 3 trials.

What does PPHM still need money wise to get the job done solo? Maybe another $50 to $100 million on top of the $30 million, plus curtailed spending on nonessential operations? But then again, perhaps the Oxford loan instrument was cooperatively done with PPHM and a Pharma partner candidate finalist and there are practical development issues that needed more time to come to fruition. That sounds better than speculating that Pharma is playing negotiations hardball and PPHM needed to finance survival funding through the FDA trial approval stage to bring Pharma reasoning in line with a proper proposal, LOL

Best wishes and IMO.

KT