Replies to post #213690 on Avid Bioservices Inc (CDMO)

[Couch]

Not without triggering the "going concern" clause. And what happens after the trial when we need marketing & distribution (assuming approval). What if there are snags along the way? Is there any risk mitigation in your world or is everything 100% approved already for one solitary trial?

Gee it sure looks like the company is in real financial worries and let me guess in your world everything is 100% guaranteed failure. Thanks but that line of assumption I can do without.

On top of all the exciting clinical and preclinical developments, we have continued to see remarkable revenue performance from our manufacturing subsidiary Avid Bioservices. We are raising revenue projections for the current fiscal year and bringing on new capacity that will help spur future growth by the middle of this year.

This capacity will allow us to continue meeting the growing needs of our existing clients while simultaneously allowing us to be ready for Bavi commercialization. This business is its strongest position ever as we head through the rest of fiscal year 2015 and is in a great position for a very strong fiscal year 2016.

Now, turning to our financials it’s important to note that we continue to closely manage our operations in-line with our cap position while balancing our various sources of capital. And one important source of capital is derived from our contract manufacturing business Avid Bioservices, which generated $5.7 million in revenue this quarter and $17.4 million for the current nine-month period. This represents a 46% increase in revenue over the same prior year quarter and a 10% increase over the same nine-month period.

As we look to the future, I would also like to emphasize that we have a strong backlog for future services in the amount of $29 million as of January 31. This current backlog covers services to be completed during the remainder of fiscal year 2015 and into fiscal year 2016.

And based on our fiscal year-to-date revenue and our anticipated completion of near-term projects under this backlog, we are raising our contract manufacturing revenue guidance from a range of $19 million to $23 million to a range of $23 million to $25 million for the full fiscal year 2015.

In addition to a strong revenue quarter, last December we shared with you strategic plans to expand our manufacturing capacity to help support the revenue growth of Avid as well as creating sufficient manufacturing capacity for the potential commercial launch of bavituximab. And growing this revenue generating business is very important to us as it reduces the amount of capital and funding we would need to raise by other means.