Avid Bioservices, Inc. (CDMO) on Q1 2021 Results - Earnings Call Transcript
Operator: Good day, ladies and gentlemen, and welcome to the Avid Bioservices First Quarter Fiscal 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session and instructions will follow at that time. As a reminder, this conference call may be recorded. I would now like to hand the conference over to Tim Brons of Avid's Investor Relations Group. Please go ahead. Tim Brons: Thank you. Good afternoon, and thank you for joining us. On today's call, we have Nick Green, President and CEO; Dan Hart, Chief Financial Officer; and Timothy Compton, Chief Commercial Officer. Today, we will be providing an overview of Avid Bioservices' contract development and manufacturing business, including updates on corporate activities and financial results for the quarter ended July 31, 2020. After our prepared remarks, we will welcome your questions. Before we begin, I'd like to caution that comments made during this conference call today, September 1, 2020, will contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the current belief of the company, which involves a number of assumptions, risks and uncertainties. Actual results could differ from these statements and the company undertakes no obligation to revise or update any statement made today. I encourage you to review all of the company's filings with the Securities and Exchange Commission concerning these and other matters. With that, I will turn the call over to Nick Green, Avid's President and CEO. Nick Green: Thank you, Tim, and thank you, to everybody who has dialed in and to those who are participating today via webcast. I officially joined Avid in late July and have truly enjoyed my first month on the job. Despite the challenges presented by the pandemic, my family and I have successfully relocated to Orange County and are settling into a new community well. My first few weeks has been nothing but confirmed my view that I believe Avid to be a strong and state of the art company with significant opportunity for growth. This is especially true given our focus on biologics, which is growing faster than many other sectors in the industry. As I returned to the USA from my time abroad, I can't help but feel that Avid is well positioned to benefit from some of the industry trends we are seeing developing recently. Given the broad and deep talent of our employees, our quality facilities, systems, expertise and commitment to excellence that fuels our work here at Avid, I am confident that the company will continue to thrive. As I begin what I believe will be an exciting and successful time with Avid, I would like to thank my predecessor, Rick Hancock, for his contributions over the last year. Under Rick’s leadership, Avid has evolved into the growth organization it is today, and I thank him and the Board for entrusting me with the future of the company. I'll now our address our financial business development and operational achievements for the period. From a financial perspective, the first quarter was particularly strong, as we significantly exceeded revenue expectations, as well as other key metrics. In business development, we expanded our customer base with the addition of three new customers, each of which brings an exciting new project to the manufacturing portfolio. Lastly, Avid's operational activities include the completion of multiple production runs that validated the remediation activities we undertook in late fiscal '20, as well as the continued development of our plans to provide additional capacity. Tim and I will provide additional details on the business development and operations, following an overview of our first quarter financial results. And for that, I turn the call over to Dan. Dan Hart: Thank you, Nick. Before I begin, I'd like to recommend that everyone participating on today's call refer to our 10-Q filing with the Securities & Exchange Commission, which we filed today for additional details. I'll now provide an overview of our financial results from continuing operations for the first quarter ended July 31, 2020. Revenues for the first quarter of fiscal 2021 were $25.4 million, a 66% increase compared to revenues of $15.3 million recorded during the first quarter of fiscal '20. The increase in revenue was primarily due to two factors. One being the growth in the number of scale of in process and/or completed manufacturing runs during the quarter, including $4.3 million from the completed manufacture of all batches that had been deferred from prior periods due to a previously disclosed equipment issue. The other being $3.1 million in fees received from a customer that had recent inventory requirements with fewer than expected runs. Therefore, not utilizing all their reserve capacities that had been scheduled for the third quarter of fiscal '21. Gross margin for the first quarter of fiscal '21 was 34%, up significantly compared to gross margin of 7% for the first quarter of fiscal '20. The increase in gross margin for the ‘21 quarter was primarily due to increased manufacturing revenue from the growth in the number and scale of manufacturing runs, and the previously mentioned fees associated with the customer’s unused capacity. I'll now address operating expenses. Total SG&A expenses for the first quarter of fiscal '21 were $3.8 million, a decrease compared to $4.5 million recorded in the first quarter of fiscal '20. The decrease in SG&A was primarily due to a decrease in separation related expenses, partially offset by a net increase in payroll and related costs. For the first quarter of fiscal '21, the company recorded a consolidated net income attributable to common stockholders of $3.3 million, a $0.06 per basic and diluted share as compared to a consolidated net loss attributable to common stockholders of $4.6 million or $0.08 per basic and diluted share for the first quarter of fiscal '20. Our backlog at the end of the first quarter of fiscal '21 was $60 million compared to $65 million at the end of fiscal '20. Despite the quarter-over-quarter decrease, it is important to note that when subtracting the batches deferred from the second half fiscal '20, the backlog during Q1 '21 remain consistent as compared to Q4 of '20 despite the significant increase in revenue during the period. The company expects to recognize the majority of this backlog in fiscal year '21. Our cash and cash equivalents as of July 31, 2020 were $28.2 million as compared to $36.3 million as of the prior fiscal year ended April 30, 2020. This decrease in cash is primarily due to the repayment of our note payable under the Paycheck Protection Program loan of $4.4 million and the timing of changes in operating assets and liabilities during the period. We are very happy to report the strong starts to the year. And while we remain optimistic that we will see continued revenue growth this year, we are cautioning against using our first quarter revenues as a new benchmark as the deferred batches from the third and fourth quarters of fiscal '20 and the previously mentioned fees associated with the customer’s unused capacity, both contributed meaningfully to the top-line during the period. This concludes my financial overview. I will now turn the call over to Tim for an update on business development activities and achievements for the quarter. Timothy Compton: Thanks, Dan. During the first quarter, the efforts of our business development team paid off nicely with signing of $20 million in new business, which includes three new customers. Each of these new customers brings an exciting project to our portfolio and we are thrilled to have earned their business. In early August, we announced that Iovance Biotherapeutics has selected Avid to provide process development, pilot batch manufacturing and CGMP manufacturing services to support development of IOV-3001 a novel antibody cytokine and graph protein. In related news last quarter, we announced that Avid had entered into a co-marketing agreement with Aragen Biosciences, a leading contract research organization focused on accelerating preclinical biologics development. We are already seeing the benefit of this collaboration as cell line development activities for IOV-3001 are currently being conducted by Aragen under its subcontracting agreement with Avid. On August 20th, we announce that Oragenics Inc. has selected Avid to provide analytical method development, process development and drug substance manufacturing services and support Oragenics novel COVID-19 spike protein vaccine candidate Terra CoV-2. The company is currently conducting cell line development, analytical method feasibility and qualification activities and once complete plans to advanced the program to upstream and downstream process development. While this program is early, we are very pleased to be working with Oragenics. And on August 26th, we announced that Mapp Biopharmaceutical Inc. has selected Avid for the clinical development of a novel monoclonal antiviral antibody. Avid is currently working to transfer the existing process into its process development laboratory and plans to conduct scale up and ultimately provide GMP manufacture from our Myford facility. During the first quarter, our team also entered into a co-marketing agreement with Argonaut Manufacturing Services to support drug product manufacturing. This partnership is designed to offer customers Avid’s upstream and downstream process development and drug substance manufacturing services, along with Argonaut’s parenteral drug product fill finish services to support the efficient delivery of CGMP parenteral drug products for use in clinical trials. Through the collaborations with both Aragen and Argonaut, Avid is strategically established in the end to end option for customers seeking support from early cell line development through drug product manufacturing. We are already seeing value from these relationships and we believe they will contribute significantly to Avid's growth going forward. Despite the impact of COVID-19 globally, our business development team has adapted well to the new normal and continues to deliver growth opportunities. We continue to engage at a high level with prospective and existing customers via virtual format and we have observed no slowdown in our activities. Thankfully, we have experienced no business development related interruptions as a result of the pandemic and we are hopeful that this will continue. This concludes my business development overview. And I'll now hand the call back over to Nick. Nick? Nick Green: Thank you, Tim. I'd like to expand on Tim's final comments to address Avid’s broader operations within the context of COVID-19. Despite the disruption caused globally by the pandemic, we are fortunate that we have not experienced any interruption to our operations. To-date, we have observed no material impact to our production programs or our supply chain and our employees remain healthy and productive. Management continues to take every precaution and follow state and local guidelines to assure the continued safety and wellbeing with our team members. And we are hopeful that our operations will remain unimpacted. During and subsequent to the quarter, we made progress with a number of important operational projects. I’d first like to address the equipment issue that interrupted several production runs during the third and fourth quarters of fiscal '20. As we reported last quarter, the specific pace of equipments in question is now operational. Following efforts to investigate and remediate the problem during the fourth quarter, we have now validated these efforts by completing multiple successful revenue generating production campaigns using this equipment. Importantly, as Dan reported earlier on, all of the delayed 2020 batches have now been completed. At the very end of July, Avid also initiated its annual preventative maintenance shutdown. As in prior years, this process temporarily reduces available capacity, which as usual, we expect to have some impact on our fiscal quarter two 2021 financial results. Lastly, we continue to make progress with our expansion plans. As we continue to see growth in customer demand, the ability to access additional capacity grows increasingly important. As I am new to the team and considering the importance of this as the future of the business, I am in the process of reviewing the design plans and other ancillary requirements ahead of making our final decision with respect to the best path forward for the business. An expansion of this nature typically takes up to 24 months to complete. And as such, we are keen to not only move swiftly but also thoughtfully. In closing, I can say that I believe the accomplishments of the first quarter have established a good momentum for the rest of the year to come. During the quarter, our business development team signed 20 million in project orders with new customers, as well as with existing customers. Looking ahead, we see growth in manufacturing demand and expect to continue to expand our production pipeline. Financially, we believe this demand will continue to drive our top line growth with margins improving in line. While we are not currently in a position to project sustainable quarter to quarter profitability, we are focused on extending this performance across our fiscal year. This concludes my prepared remarks for today. And we can now go open the line to questions. Operator? Operator: Thank you [Operator Instructions]. Our first question comes from Matt Hewitt with Craig-Hallum. Your line is now open. Matt Hewitt: Good afternoon. Thank you for taking the questions, and welcome Nick. Nick Green: Thank you very much, Matt. Matt Hewitt: Regarding the three new customer wins, obviously, a nice cadence there as we led up to the report today. It sounds like one of them came via the new partners. But maybe talk about the pipeline of opportunities there, how the other two came about and what you're seeing from a development standpoint, I guess over the remainder of the year? Tim Brons: So the other opportunities came from just our typical BD activities here at the organization. We have a strong pipeline. Our pipeline continues to grow for new opportunities on a monthly basis. As you know, some sales cycles are short, some sales cycles are long, just really depending on the absolute need of the customer and how fast they need to move when selecting a partner like Avid. And so like we said, we have a number of opportunities in that pipeline and we look to continue to add new customers throughout the year. Matt Hewitt: And then there was obviously a benefit, I think largely due to the fees. But even if you back off that $3.1 million, your gross margin would have come in at 24.5% roughly. Is that still a big step up from the last couple of quarters and quite frankly, the last couple years? How should we be thinking about gross margin for the remainder of the year? Dan Hart: Gross margin for the year -- gross margin will continue to track in line with revenue growth. As we noted in our prepared remarks, there are couple of items that went into this first quarter that helped absorb some of our largely fixed costs. So going forward, as I've mentioned in the past, we'll continue to move our margins forward. 34% is a significant margin for us for the first quarter. And as we see the ups and downs in the quarters going forward that will be a little bit more in line with that net number 20%, 24% as you mentioned. Matt Hewitt: And then maybe one last question and then we'll hop back into the queue. With these new -- two new partnerships, as you're having discussions with customers are you getting the response essentially, we're glad that you've got this now? Or what are you hearing from customers regarding those two relationships? And how does that really kind of build the pipeline for you in addition to the internal work that you've been doing? Thank you. Tim Brons: I assume by partnerships you're talking about the co-marketing agreement with Argonaut and Aragen? Matt Hewitt: Correct. Tim Brons: So we're seeing typically with our request for proposal from our customers, they're looking for an end to end service offering starting out, especially some of the earlier development programs starting out in cell line development. And so simply by providing them an option to work with one of our partners on the cell line development is beneficial and keeps us at the table with that perspective customer early on in the development of the program. Otherwise, we would likely come to the table after cell line development is completed. And then going at the other end of the spectrum looking at the drug product, we're also getting requests for drug products. And so there, we would connect them with our co-marketing partner there at Argonaut Manufacturing Services. But again, each of these co-marketing agreements are non-exclusive. And really, it's satisfying the customer needs and working with them to provide a flexible solution for them. Operator: Thank you. And our next question comes from Jacob Johnson with Stephens. Your line is now open. Jacob Johnson: Congrats on really strong quarter and welcome to Avid, Nick. I guess first question is just on capacity. In the release and in your comments, you talked about the need to expand capacity to meet customer demand. Maybe can you remind us where you are in revenue capacity roughly today? And then if you break ground shortly, do you think you'll have enough time to bring this capacity online in time to meet the projected demand you're seeing? Sounds like you're moving pretty swiftly. Dan Hart: So the current installed capacity we have in our two plants can get us roughly to a hundred, hundred plus million dollars in revenue. If we were to expand our current facilities that footprint if we were, as we talked in the past looking at the overall Myford footprint, we have the ability to expand into the second half of Myford. And then expanding into the second half because we don't have a lot of redundant utilities that we'll have to put in, we could add up to capacity, revenue generating capacity of up to another hundred plus million in revenue. So current install base today is $100 million if we were to fully build out our Myford we could get to $200 million, $250 million. Nick Green: And Jacob, it's Nick speaking, just to add a little bit color to that. I mean, one of the things that we are looking at the moment is sort of a critical path analysis of all the various activities within the operations to try and determine whether there are opportunities to free capacity in the shorter term, as well as the overall expansion, which effectively has very significant amount of expansion and take somewhat longer to do. So to give you an exact percentage all depends on which portion of the part of the critical path you measure it against. But I think we'll have that concluded in the not too distant future and probably be reporting how we're going to move forward on that in the next few months. Jacob Johnson: And maybe a question, a high level question for you, Nick. I realize that today is maybe 32 on the job here at Avid. But would be interested in your high level thoughts on Avid strategy going forward. Are there any therapeutic areas or for capabilities that maybe had not been historical focus for Avid that would be interesting to you, or just sort of any other high level thoughts on the strategy going forward? Nick Green: A little early to give you a strategy for going forward. We're actually embarking on that process as we speak and as soon as we finish the calls with investors following this call. So certainly in terms of what I've seen, I think there's plenty of opportunity. I think I've been delighted with open mindedness of the management team, to be frank and people open to different ideas and suggestions and thoughts, which I think is always very healthy in terms of developing a strategy going forward. I think it'd be folly for me to suggest that I had a magic wand and I was all sudden going to walk in 32 days and present them with a new strategy that was going to reveal a bright new future. But I think there's lots and lots of opportunity for us, both internally in improving the way we operate, as well as externally and looking at the services and the way that we service our clients. So I think sort of next quarter call, I'd be more than happy to give you my views on how we're going to move the organization forward. But don't envisage that being something that’s driven by a lack of opportunity quite the contrary. Jacob Johnson: Understood, I’ll try again next quarter. And one last question for you, you reiterated guidance for the year, understanding there’s some more in time benefits in the quarter. 2Q I think is the seasonal maintenance period and also the fact it's one quarter in. But just anything else you would call out as to why you guys didn't raise guidance calling, obviously, a really strong start to the year? Timothy Compton: I think there's a couple things in there, Jacob. The first one is our first quarter. And as we discussed in the prepared remarks, there were a couple things that hit the first quarter that helped elevate that top-line. We do have our shutdown that we do in the second quarter every year. As we look at where we're at today in addition the uncertainty with the pandemic, we're comfortable with where we're at looking at our forecast moving forward. So that's why we reiterated our guidance, so $76 million to $81 million. Operator: Thank you. And I'm showing no further questions in the queue at this time. I'd like to turn the call back to Nick Green for any closing remarks. Nick Green: Thank you, Operator. And thank you to everyone participating on today's call. I am pleased to be at Avid at this exciting time in the company's evolution, and have a great deal of optimism for the future of the business. And I'm very happy to be working alongside our exceptional employees. In closing, I'd like to thank our dedicated employees, many of whom are at Avid daily, working through the challenges presented by COVID-19, both at home and at work. They work to ensure that we are able to deliver commercial and clinical products we need to supply to patients in need. None of this success will be possible without the hard work commitment to our employees and I'm grateful for their dedication. I thank you again for participating in today's call, and thank you for your continued support of Avid Bioservices. Operator: Ladies and gentlemen, thank you for your participation on today's conference. This does conclude your program, and you may now disconnect.
Avid Bioservices, Inc. (NASDAQ: CDMO) Under Investigation Amid Proposed Sale
- The proposed sale of Avid Bioservices, Inc. (NASDAQ:CDMO) to GHO Capital Partners LLP and Ampersand Capital Partners at $12.50 per share is being investigated for fairness.
- Recent insider activity includes the sale of 3,843 shares by Chief Operations Officer Richieri Richard A. at $12.22 each, below the current stock price of $12.35.
- CDMO's stock volatility is highlighted by a 52-week range of $12.48 to $5.65, with a current market capitalization of approximately $789.6 million.
Avid Bioservices, Inc. (NASDAQ:CDMO) is under scrutiny as Halper Sadeh LLC investigates the fairness of its proposed sale to GHO Capital Partners LLP and Ampersand Capital Partners. The deal offers $12.50 per share in cash, raising concerns about whether the board has secured the best possible outcome for shareholders. The law firm is known for representing investors affected by securities fraud and corporate misconduct.
The investigation by Halper Sadeh LLC is particularly relevant given recent insider activity. On December 26, 2024, Richieri Richard A., CDMO's Chief Operations Officer, sold 3,843 shares at $12.22 each. This transaction price is slightly below the current stock price of $12.35, which has seen a 0.86% increase. Such insider transactions can influence perceptions of the company's valuation.
CDMO's stock has shown volatility, with a 52-week high of $12.48 and a low of $5.65. The current market capitalization stands at approximately $789.6 million. The stock's fluctuation between $12.29 and $12.35 today highlights the market's response to the ongoing investigation and proposed sale. Investors are closely watching these developments.
The trading volume for CDMO today is 882,025 shares, indicating active investor interest. This activity may be driven by the potential for increased compensation or additional disclosures as sought by Halper Sadeh LLC. The firm's history of recovering millions for defrauded investors adds weight to the investigation's potential impact on CDMO's future.
Avid Bioservices, Inc. (NASDAQ: CDMO) Under Investigation Amid Proposed Sale
- The proposed sale of Avid Bioservices, Inc. (NASDAQ:CDMO) to GHO Capital Partners LLP and Ampersand Capital Partners at $12.50 per share is being investigated for fairness.
- Recent insider activity includes the sale of 3,843 shares by Chief Operations Officer Richieri Richard A. at $12.22 each, below the current stock price of $12.35.
- CDMO's stock volatility is highlighted by a 52-week range of $12.48 to $5.65, with a current market capitalization of approximately $789.6 million.
Avid Bioservices, Inc. (NASDAQ:CDMO) is under scrutiny as Halper Sadeh LLC investigates the fairness of its proposed sale to GHO Capital Partners LLP and Ampersand Capital Partners. The deal offers $12.50 per share in cash, raising concerns about whether the board has secured the best possible outcome for shareholders. The law firm is known for representing investors affected by securities fraud and corporate misconduct.
The investigation by Halper Sadeh LLC is particularly relevant given recent insider activity. On December 26, 2024, Richieri Richard A., CDMO's Chief Operations Officer, sold 3,843 shares at $12.22 each. This transaction price is slightly below the current stock price of $12.35, which has seen a 0.86% increase. Such insider transactions can influence perceptions of the company's valuation.
CDMO's stock has shown volatility, with a 52-week high of $12.48 and a low of $5.65. The current market capitalization stands at approximately $789.6 million. The stock's fluctuation between $12.29 and $12.35 today highlights the market's response to the ongoing investigation and proposed sale. Investors are closely watching these developments.
The trading volume for CDMO today is 882,025 shares, indicating active investor interest. This activity may be driven by the potential for increased compensation or additional disclosures as sought by Halper Sadeh LLC. The firm's history of recovering millions for defrauded investors adds weight to the investigation's potential impact on CDMO's future.
Avid Bioservices, Inc. (NASDAQ:CDMO) Achieves Record Financial Milestones
- Record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, highlights Avid Bioservices' strong market position and operational efficiency.
- The company has signed $30 million in net new business, contributing to a backlog of $193 million, demonstrating its ability to attract and retain clients.
- A price target of $8 set by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory within the biologics CDMO sector.
Avid Bioservices, Inc. (NASDAQ:CDMO) has been making significant strides in the biopharmaceutical sector as a contract development and manufacturing organization. Since its rebranding from Peregrine Pharmaceuticals, Inc. in January 2018, CDMO has focused on producing biopharmaceutical drug substances, leveraging mammalian cell culture technology. This specialization places Avid Bioservices in a unique position within the biotechnology and biopharmaceutical industries, catering to a growing demand for contract development and manufacturing services. The company's comprehensive service offerings, including CGMP clinical and commercial manufacturing, process development, and regulatory support, underscore its commitment to supporting the lifecycle of biopharmaceutical products.
The recent financial milestones achieved by Avid Bioservices highlight the company's robust performance and potential for future growth. For instance, the record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, as reported by GlobeNewswire, marks the highest in the company's history. This achievement, coupled with the signing of $30 million in net new business, contributing to a backlog of $193 million, demonstrates Avid Bioservices' strong market position and operational efficiency. These financial results are a testament to the company's ability to attract and retain clients, thereby ensuring a steady stream of revenue.
Furthermore, the setting of a price target of $8 by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory and strategic positioning within the biologics CDMO sector. This price target, informed by the company's recent financial achievements and market dynamics, suggests a positive outlook on CDMO's stock potential. The analyst's perspective is likely influenced by Avid Bioservices' record revenue figures, backlog growth, and the broader industry trends favoring biologics production outsourcing.
The biopharmaceutical sector's volatility, driven by regulatory approvals, clinical trial outcomes, and partnership announcements, plays a significant role in shaping analyst target prices and market perceptions. Avid Bioservices' ability to navigate this complex landscape, as evidenced by its financial results and strategic initiatives, positions the company favorably among investors and analysts alike.
In conclusion, Avid Bioservices' financial performance and the strategic moves it has made underscore the company's resilience and adaptability in a competitive and rapidly evolving industry. The record revenues and backlog, along with the positive price target from RBC Capital, signal strong confidence in CDMO's growth potential and market position. As the biopharmaceutical industry continues to evolve, Avid Bioservices' role as a key player in contract development and manufacturing is expected to remain critical, offering promising opportunities for the company and its stakeholders.
Avid Bioservices, Inc. (NASDAQ:CDMO) Achieves Record Financial Milestones
- Record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, highlights Avid Bioservices' strong market position and operational efficiency.
- The company has signed $30 million in net new business, contributing to a backlog of $193 million, demonstrating its ability to attract and retain clients.
- A price target of $8 set by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory within the biologics CDMO sector.
Avid Bioservices, Inc. (NASDAQ:CDMO) has been making significant strides in the biopharmaceutical sector as a contract development and manufacturing organization. Since its rebranding from Peregrine Pharmaceuticals, Inc. in January 2018, CDMO has focused on producing biopharmaceutical drug substances, leveraging mammalian cell culture technology. This specialization places Avid Bioservices in a unique position within the biotechnology and biopharmaceutical industries, catering to a growing demand for contract development and manufacturing services. The company's comprehensive service offerings, including CGMP clinical and commercial manufacturing, process development, and regulatory support, underscore its commitment to supporting the lifecycle of biopharmaceutical products.
The recent financial milestones achieved by Avid Bioservices highlight the company's robust performance and potential for future growth. For instance, the record-breaking fourth-quarter revenue of $43 million for the fiscal year ending April 30, 2024, as reported by GlobeNewswire, marks the highest in the company's history. This achievement, coupled with the signing of $30 million in net new business, contributing to a backlog of $193 million, demonstrates Avid Bioservices' strong market position and operational efficiency. These financial results are a testament to the company's ability to attract and retain clients, thereby ensuring a steady stream of revenue.
Furthermore, the setting of a price target of $8 by RBC Capital analyst Sean Dodge reflects confidence in Avid Bioservices' growth trajectory and strategic positioning within the biologics CDMO sector. This price target, informed by the company's recent financial achievements and market dynamics, suggests a positive outlook on CDMO's stock potential. The analyst's perspective is likely influenced by Avid Bioservices' record revenue figures, backlog growth, and the broader industry trends favoring biologics production outsourcing.
The biopharmaceutical sector's volatility, driven by regulatory approvals, clinical trial outcomes, and partnership announcements, plays a significant role in shaping analyst target prices and market perceptions. Avid Bioservices' ability to navigate this complex landscape, as evidenced by its financial results and strategic initiatives, positions the company favorably among investors and analysts alike.
In conclusion, Avid Bioservices' financial performance and the strategic moves it has made underscore the company's resilience and adaptability in a competitive and rapidly evolving industry. The record revenues and backlog, along with the positive price target from RBC Capital, signal strong confidence in CDMO's growth potential and market position. As the biopharmaceutical industry continues to evolve, Avid Bioservices' role as a key player in contract development and manufacturing is expected to remain critical, offering promising opportunities for the company and its stakeholders.
Avid Bioservices, Inc. Reports Mixed Financial Results for Q4 Fiscal Year 2024
- Avid Bioservices reported an EPS of -1.94, significantly below the anticipated -0.038, indicating a larger-than-expected loss.
- The company's revenue for the fourth quarter was $42.98 million, slightly exceeding forecasts and marking a record-breaking figure for the period.
- Despite the disappointing EPS, Avid Bioservices has set ambitious revenue guidance for fiscal year 2025, projecting earnings between $160 million and $168 million.
On Wednesday, July 3, 2024, Avid Bioservices, Inc. (NASDAQ:CDMO) reported its earnings per share (EPS) for the fourth quarter of the fiscal year 2024, revealing a figure of -1.94. This result was significantly below the anticipated -0.038, indicating a larger-than-expected loss for the period. However, the company's revenue for the same period was $42.98 million, which slightly exceeded the forecast of $42.14 million. This mixed financial outcome highlights the challenges and opportunities facing the company in terms of its operational and financial performance.
Avid Bioservices, a key player in the biotechnology and pharmaceutical sectors, specializes in development and manufacturing services. Under the guidance of its leadership team, including President & CEO Nick Green, the company has recently completed a significant expansion program. This initiative has led to the full operational status of new facilities dedicated to mammalian, cell, and gene therapy, setting the stage for future growth. The company's successful execution of this expansion is a testament to its strategic planning and operational capabilities.
Despite the disappointing EPS, Avid Bioservices achieved a record-breaking fourth-quarter revenue of $43 million, the highest in its history. This achievement is particularly noteworthy as it comes at a time when the company has signed $30 million in net new business, contributing to a robust backlog of $193 million. Such financial milestones underscore the company's ability to attract and retain business, even in a challenging economic environment.
Looking forward, Avid Bioservices has set ambitious revenue guidance for the fiscal year 2025, projecting earnings between $160 million and $168 million. This forecast reflects the company's confidence in its enhanced operational capabilities and its commitment to making a positive impact on patient lives through its services. The company's strategic investments in expanding its facilities and its focus on high-quality development and manufacturing services are expected to drive its growth in the coming years.
Financial metrics such as the price-to-sales ratio (TTM) of approximately 3.49 and the enterprise value-to-sales ratio (TTM) of about 4.70 provide further insight into how investors value Avid Bioservices. Despite a negative price-to-earnings ratio (TTM) of -3.47, indicating current unprofitability, the company maintains a stable financial position with a current ratio (TTM) of 1.47. This balance between assets and liabilities, along with the company's strategic initiatives and operational achievements, positions Avid Bioservices for potential future success in the biotechnology and pharmaceutical sectors.
Avid Bioservices, Inc. Reports Mixed Financial Results for Q4 Fiscal Year 2024
- Avid Bioservices reported an EPS of -1.94, significantly below the anticipated -0.038, indicating a larger-than-expected loss.
- The company's revenue for the fourth quarter was $42.98 million, slightly exceeding forecasts and marking a record-breaking figure for the period.
- Despite the disappointing EPS, Avid Bioservices has set ambitious revenue guidance for fiscal year 2025, projecting earnings between $160 million and $168 million.
On Wednesday, July 3, 2024, Avid Bioservices, Inc. (NASDAQ:CDMO) reported its earnings per share (EPS) for the fourth quarter of the fiscal year 2024, revealing a figure of -1.94. This result was significantly below the anticipated -0.038, indicating a larger-than-expected loss for the period. However, the company's revenue for the same period was $42.98 million, which slightly exceeded the forecast of $42.14 million. This mixed financial outcome highlights the challenges and opportunities facing the company in terms of its operational and financial performance.
Avid Bioservices, a key player in the biotechnology and pharmaceutical sectors, specializes in development and manufacturing services. Under the guidance of its leadership team, including President & CEO Nick Green, the company has recently completed a significant expansion program. This initiative has led to the full operational status of new facilities dedicated to mammalian, cell, and gene therapy, setting the stage for future growth. The company's successful execution of this expansion is a testament to its strategic planning and operational capabilities.
Despite the disappointing EPS, Avid Bioservices achieved a record-breaking fourth-quarter revenue of $43 million, the highest in its history. This achievement is particularly noteworthy as it comes at a time when the company has signed $30 million in net new business, contributing to a robust backlog of $193 million. Such financial milestones underscore the company's ability to attract and retain business, even in a challenging economic environment.
Looking forward, Avid Bioservices has set ambitious revenue guidance for the fiscal year 2025, projecting earnings between $160 million and $168 million. This forecast reflects the company's confidence in its enhanced operational capabilities and its commitment to making a positive impact on patient lives through its services. The company's strategic investments in expanding its facilities and its focus on high-quality development and manufacturing services are expected to drive its growth in the coming years.
Financial metrics such as the price-to-sales ratio (TTM) of approximately 3.49 and the enterprise value-to-sales ratio (TTM) of about 4.70 provide further insight into how investors value Avid Bioservices. Despite a negative price-to-earnings ratio (TTM) of -3.47, indicating current unprofitability, the company maintains a stable financial position with a current ratio (TTM) of 1.47. This balance between assets and liabilities, along with the company's strategic initiatives and operational achievements, positions Avid Bioservices for potential future success in the biotechnology and pharmaceutical sectors.
Avid Bioservices Reports Q2 EPS Miss, While Revenues Beat Estimates
Avid Bioservices (NASDAQ:CDMO) reported its Q2 results, with EPS coming in at $0.02, worse than the Street estimate of $0.04. Revenue was $36.7 million, compared to the Street estimate of $33.44 million.
Q2 was another strong quarter of bookings ($41 million, up 78% year-over-year) that helped contribute to the fourth consecutive increase in the company's backlog, which now stands at $157 million.
The company still expects the majority of this to convert to revenue within 12 months; notably, this is ahead of the 2023 revenue guidance of $140-145 million (vs. Street’s $143 million).
