Avid Bioservices Inc (CDMO)

[RRdog]

Something else comes up of great interest in the Piper Jaffray report and that is more talk of PPHM as an "acquisition". This gives PPHM two ways of being looked at --the first being of course a platform licensee.

The following quote supports this line:


"In addition, we believe the size and fully-human
nature may support PGN650’s utility as a 2nd-gen “bavi’-better.” Phase I data for PGN650 is
expected this year, and this may result in the company becoming an acquisition candidate,
versus simply a partnering candidate, based on broad applicability but also long run-way
potential for the emerging PS-targeting franchise."

This sounds like Duncan is starting to perceive the value of the "PS franchise" which makes him smarter than most analysts. The small molecule value may lie in its ability to also access PS targets inside the cell that have not migrated to the surface.

It is a possibility, still too early to really tell, that Piper Jaffray may have interest in a much larger future banking transaction with PPHM. Obviously, it would be difficult to engineer a sale from these prices. However, a stepped transaction would be possible starting with platform licensing and similar to some of the scenarios that have been described before.

Best Regards,
RRdog