News 
Market Data 
Discover
Replies to post #277158 on Avid Bioservices Inc (CDMO)
During FY2016, our Avid business has experienced substantial revenue growth with a 5-year compounded annual growth rate of 39% and yr-over-yr growth of 66%.
...
I would also like to reaffirm our full FY2017 revenue guidance of $50-55mm, representing up to 24% and yr-over-yr growth compared to last FY. And it's important to note that our projected revenue growth is supported by current revenue backlog of $71mm under signed contacts covering services to be completed during the remainder of FY17 and into FY18.
...
Now given our corporate goal of reaching profitability in 21 months, it is critical that we continue to grow our contract mfg. business.
...
For this reason and coupled with the high demand for mfg. services, we are planning to construct a 3rd mfg. facility focused on products in clinical development. We believe the 3rd facility will again significantly increase our mfg. capacity and all 3 mfg. facilities will have the potential to generate in total approx. $110mm in annual revenue. We expect the new facility to be complete and ready for clinical mfg. activities by mid calendar year 2017.
On the mfg. front, it remains an extraordinarily busy time. We have remained on track for initiating & completing mfg. campaigns, keeping us on track to meet our current FY revenue projections. Our strategy for growing mfg. revenues remains on track as well, continuing to generate revenues in our Franklin facility which last year generated over $40mm in revenues, generate revenues from our new Myford facility, which is already booked well into next year and has another $40mm in revenue potential, and to bring online a new clinical production facility by mid next year which will allow us to continue introducing new clients into our business and to continue bringing in 2nd products from existing clients.
The new facility will add another $30mm in revenue potential, and we have already identified a number of projects that can move into this facility as soon as it is completed. Paul will discuss the Avid business in more detail, as we continue to deliver high quality products for our partners. Our ultimate goal remains to reach overall profitability within the next 21 months, and Avid will be an important driver for achieving that goal, in combination with making strategic investments in our R&D while pursuing partnerships to help advance our programs. You can already see these plans playing out, as we are on track to grow revenues significantly this year while simultaneously seeing a significant decrease in R&D spending during the quarter, even though we are continuing to advance our programs. I will now turn the call over to Joe for more details on our clinical dev. efforts.
