Replies to post #245516 on Avid Bioservices Inc (CDMO)

[swg_tdr]

MH, so a third-rate Fargo outfit finish-processed Bavi bulk before filling vials, is that what you imply?

I always have assumed that we did the bulk finish because of the FDSA approved manufacturing processes, and dial fill was a somewhat trivial part (except for the dastardly labeling)

best,
N

[asmarterwookie]

That's what I said...LOL!!! Thanks MH!

I just love it.

wook

[JamesGMS]

MH, thank you very much for your prompt reply.

I'll pass on the info.

James

[Protector]

massH, very interesting.

Do you have any 'fist' rules as to the cost of the different stages? I don't mean real cost but rather things like Bulk is less expensive then fill/finish etc.
Let's just stick to bavi for simplicity.

PPHM produces bulk vs outsourcing it
PPHM stores (cold storage) bulk
PPHM outsources fill/finish
PPHM does not store (finished product)

Things could be hidden inside those activities price wise.
For instance it sounds like fill/finish is an expensive process given the requirement so it may be assumed that 3rd parties will have serous margin in that. Or maybe the finished product does not need COLD storage and if PPHM would themselves fill/finish they could store much cheaper.

There is also the strategic control, not to depend on the good-will or production chain of a 3rd party. After Fargo and CSM and the dose switching, PPHM might see the value of not outsourcing in more then a financial way.

[Carboat]

This is why AVID is a backup plan for Sunrise being sunset:

My opinion is that while driving the addition or maintaining of customers with a better vertically integrated manufacturing process, it may not make a huge difference to the stock and the eventual outcome. Provided Bavi is successful, incremental benefit from toll manufacturing (what they're doing for other customers) would pale in comparison to Bavi sales.

Also why using high-risk/high-return-expectations funding like ATM is absurd for AVID. Every share printed to support Avid is less potential upside for pphm shareholders. They implied on the cc that other funding could be used for Avid (don't see how considering the accounting is consolidated with rest of pphm) - why don't they, money is cheap for mfg who have book of business to support loan.