Replies to post #48804 on Avid Bioservices Inc (CDMO)

[nuke661]

CJ,

Thanks for the post. I can't help but feel that things are going to pop soon (i.e. this year). SK certainly seems to provide much stronger and positive statements in this presentation than I can ever remember reading in PRs or hearing in qtrly CCs. It seems clear to me that they are ready to partner Cortora at the point of maximum benefit and that point seems to be later this year.

One thing that I don't believe has been discussed regarding the last cc: is the following statement made by PL near the beginning:

"This quarter, we saw gov’t contract revenue increase significantly to $6.9mm. This increase was mostly due to the mfg. services provided by our wholly-owned subsidiary, Avid Bioservices, which is ultimately reported as gov’t contract revenue, in accordance with GAAP."

This sounds like he is saying the gubment bought themselves at between 3.5 and 6.9 million dollars worth of Bavi juice this past quarter. Does anyone know how many "animal" treatments that equates to? I assume animal doses would be significantly smaller than typical human doses.

Kind of has the smell of some sort of mini stockpiling or PPHM is really selling the stuff at DOD rates. If its not stockpiling then there must be a lot of testing going on or planning to. Doesn't seem like the government would commit to purchasing that much stuff for testing if they weren't planning on continuing with the contract in the near term.

But as I think Moby said, and I agree with all too much, 3 to 6 million dollars doesn't seem to mean much to anyone in the government anymore. So, to them it could just be like throwing pennies to the poor.

Of course its all my opinion.

Again thanks for your good work CJ.

Nuke

[purpledawgs]

Thanks CJ - anybody else notice that on slide 19 it states 5 year 44 million contract, and not "up to 5 year"? Is that a signal that gov't has already discussed extending for full 5 years?

PD