Replies to post #39423 on Avid Bioservices Inc (CDMO)

[dia76ca]

Only the company knows what the R84 licencing brought PPHM! It brought us something between $10 and $99 million in up-front and milestone payments and a totally undisclosed royalty. And I agree that this deal should be undisclosed. But I would not be at all surprised to see Affi get another bigger partner to fund the clinical programs! And I assume PPHM will share in the benefits of this partnering!

I expect more PPHM partnerships and I expect continuing dramatic increases in AVID revenues. I also expect some competitive bidding on some of these partnerships.

Finally I expect some competitive bidding when the time comes for a buy-out. And as this is several years out, I would not be surprised to see it take place when there is a greatly improved economy and Big Pharma are even more hungry for pipelines than they are today. So I would not like to compare any deals make now to what might be made in a better economy with competitive bidding! Time is on our side.

[entdoc]

KT: PPHM financing is assured, but that is not the picture being painted by those doing the financing. That "iffy" financial picture serves to scare away the investing community so that Roce can take over PPHM at a much lower price per share [and multiple?] than even MEDX. And that is not to take anything away from MEDX. I've said here that MEDX and PPHM are the two biotechs to be reckoned with in the next generation of MABs. MEDX has a better anti-EGF than IMCL's Erbitux, and PPHM has a better Avastin than DNA...with Bavi, Cotara, tTF, and other gems in the mix. At this point the financials are a technicality that keeps the price down. Last year that was not the case. Increasingly it looks as if Bavi is good enough to be financed all the way to the end, whatever that turns out to be.
Why is it that I see Roches everywhere I turn? The deal with Affitec (or whatever its name) is a deal with Roche, bottom line. And as said before, how long before the genie is out of the bottle? We break the pps logjam when the public sees the truth and crashes in...when Roche can no longer control the price. At that point they will have the shares...and a buyout on their terms will be a done deal. Throw the shareholders a "twofer" bone. My strategy is to get more now.