Replies to post #327575 on Avid Bioservices Inc (CDMO)

[peregr]

Thanks JD1. The slides on the Halo buyout give us a good baseline to value CDMO. Initially, I thought this much larger facility and 425 employee workforce and a $425M buyout capped our value. However, Halo had $100M in revenue and a EBITDA of $27M. This implies a 16x multiple on EBITDA and exactly where Ronin indicated in their SEC filings. With a projected $100M revenue and our EBITDA at 70% could value us at $20 per share (over $1B market cap) and with the expansion to $200M a linear progression to $40. And that would not include any buyout premium or IP kicker in the future.


Also don't know how much excess capacity Halo has and any debt.


We should be good with the $10 target the analysts just put out and explains the volume today.

[EndoTarget]

JDM1,

Wjth a ticker like CDMO, one can expect CDMO to buy CDMOs and remember we have 500,000,000 shares...