Avid Bioservices, Inc. - CDMO STOCK NEWS

Avid Bioservices, Inc. (NASDAQ:CDMO) announced its inclusion in the S&P SmallCap 600 Index, effective October 29, 2021. This milestone reflects the company’s successful growth strategy and the contributions of its team. The S&P SmallCap 600 is designed to measure the performance of small-cap U.S. companies with market caps between $850 million and $3.6 billion. Avid focuses on CGMP manufacturing and development services for biologics, with extensive experience in monoclonal antibodies and recombinant proteins.

Avid Bioservices will be added to the S&P SmallCap 600 on October 29, 2021, replacing Cadence Bancorporation, which is being acquired by BancorpSouth Bank. This transition indicates a positive shift for Avid Bioservices as it moves into a more prominent index, potentially attracting more investment and improving liquidity. The acquisition of Cadence Bancorporation is expected to close around the same date, pending final conditions.

Avid Bioservices, Inc. (NASDAQ:CDMO) is expanding into the cell and gene therapy market by building a 53,000 sq. ft. viral vector development and CGMP manufacturing facility in Costa Mesa, CA. The estimated construction cost ranges from $65 million to $75 million, with completion projected within 18 months. This move is driven by the increasing demand for viral vector production. Avid anticipates this expansion could boost its annual revenue-generating capacity to over $350 million. Drew Brennan has been appointed general manager for this new business segment, enhancing Avid's expertise in the market.

Avid Bioservices has appointed Matthew Kwietniak as Chief Commercial Officer, effective immediately. Kwietniak brings nearly 30 years of sales experience in the CDMO sector, having previously led drug product sales at Thermo Fisher Scientific and held senior roles at Covance. His appointment aims to enhance Avid's growth trajectory and client relations in the CDMO business, which is crucial as the company undertakes expansion projects to increase capacity. The leadership transition is expected to strengthen Avid’s commercial and clinical client base.

Avid Bioservices reported first quarter revenue of $30.8 million, marking a 21% year-over-year increase. The company achieved its fifth consecutive quarter of operational profitability and signed $23 million in new business orders, ending with a backlog of $110 million, an 83% increase from last year. Gross margin improved to 37%, up from 34% in the prior year, aided by a $3.3 million fee from unused capacity. Avid confirmed its fiscal 2022 revenue guidance of $115 million to $117 million, reflecting expected growth of 20% to 22%. Current cash reserves stand at $160 million.

Avid Bioservices, Inc. (NASDAQ:CDMO) announced its participation in two investor conferences taking place in September 2021. The company will engage in a fireside chat at the Morgan Stanley 19th Annual Global Healthcare Conference on September 9, followed by 1-on-1 meetings from September 9-10 and 13-15. Avid will also present at the HC Wainwright 23rd Annual Global Investment Conference on September 13, with a corporate presentation available online at 7:00 a.m. Eastern. Both events feature virtual formats.

Avid Bioservices, Inc. (NASDAQ:CDMO) will release its first quarter fiscal year 2022 financial results on September 8, 2021, after market close. A conference call and webcast will take place at 1:30 PM PT for management to discuss these results and recent developments. The event aims to provide insights into the company's performance and ongoing initiatives. Investors can access the live audio through the company’s investor relations page.

Avid Bioservices (NASDAQ:CDMO) announced the appointment of Dr. Esther M. Alegria as an independent board member. Dr. Alegria brings nearly 30 years of biopharmaceutical experience, including her role as Senior VP of Global Manufacturing at Biogen. Her expertise spans R&D, manufacturing, and regulatory submissions, which is expected to support Avid’s growth strategy. Dr. Alegria currently leads APIE Therapeutics, focusing on novel treatments. The board expresses enthusiasm about her contributions to Avid's leadership and strategic direction.

Avid Bioservices recorded fourth quarter revenue of $27.6 million and annual revenue of $95.9 million, reflecting a 61% increase from the previous year. The company achieved four consecutive quarters of operational profitability and signed approximately $148 million in new business orders, resulting in a year-end backlog of $118 million. For fiscal 2022, revenue guidance is projected at $115 to $117 million, representing 20%-22% growth. Avid raised $138.5 million in a successful offering of convertible senior notes to support expansion efforts.