Avid Bioservices Inc (CDMO)

[EYEBUYSTOX]

Regarding upfront money...

I imagine a deal would be structured similar to PCYC...they only had drugs in phase II and landed $150 million up front with up to $900 million possible.

http://seekingalpha.com/article/313249-pharmacyclics-scores-big-with-janssen-biotech-deal

PPHM doesn't really need $300 million "up front".

The way PCYC structured it, they received milestone payments after the fifth patient was enrolled in each phase III trial. One was triggered last month: http://www.marketwatch.com/story/pharmacyclics-gets-50-million-milestone-payment-2012-08-20


So, $100-$200 million up front with similar milestones would make a lot of sense to me in partnering bavi. I think the partnership will already be priced in by the time of the announcement and expect we'll be around $1 billion market cap.

PCYC has negative earnings, just entered phase III and has a 4.5 billion market cap. IMO, if bavi works the potential dwarfs that of PCYC's lead candidate.