Replies to post #89770 on Avid Bioservices Inc (CDMO)

[Thurly]

UPDATED

KT,

To me, the loan makes sense from a negotiating point of view only if the company has determined for itself -- and Oxford agrees -- that they have the ability to file for AA.

If they can't apply for AA and no acceptable deal can be reached, PPHM suddenly has no path to a PIII and they will struggle to pay back the $15M loan. They still have the possibility of a Cotara deal but, similarly, they will have lost negotiating leverage (made themselves vulnerable) having taken on the burden of the loan without a pathway to AA and revenue.

With AA they have a pathway to substantial revenue in less than a year.

Even with an AA application, there is substantial risk of regulatory and, ultimately, clinical failure, so they should partner to mitigate that risk.

[ststephensrevenge]

+++What does PPHM still need money wise to get the job done solo? Maybe another $50 to $100 million on top of the $30 million, plus curtailed spending on nonessential operations?

What is Cotara worth if it is sold outright after the FDA replies with a P3 decision? Any estimates? I understand that the paved path would be partnering, but wouldn’t the proceeds of a Cotara sale coupled with the recent loan provide enough capital to at least give the impression that Peregrine could go it alone?