Avid Bioservices, Inc. - CDMO STOCK NEWS

Avid Bioservices has been selected as the commercial manufacturer for ZYNLONTA™, a newly approved CD19-targeted antibody drug conjugate for adults with relapsed or refractory large B-cell lymphoma (DLBCL). This follows the FDA's approval of ZYNLONTA in April 2021. Avid has had a partnership with ADC Therapeutics since 2017 for clinical manufacturing and is expanding this relationship for commercial manufacturing. The expansion demonstrates Avid's experience and quality in supporting innovative biologic therapies.

Avid Bioservices announced the successful redemption of all outstanding 10.50% Series E Convertible Preferred Stock as of April 12, 2021. The company utilized proceeds from a recent offering of exchangeable senior notes to complete this redemption, with each share redeemed at $25.00 plus any accrued dividends. Consequently, the Series E Preferred Stock is no longer listed on NASDAQ as CDMOP. Avid Bioservices specializes in biologics contract development and manufacturing, focusing on high-quality services for the biopharmaceutical industry.

Avid Bioservices (NASDAQ:CDMO, CDMOP) announced participation in the KeyBanc Capital Markets Life Sciences & MedTech Investor Forum, taking place on March 23-24, 2021. CEO Nick Green will feature in a fireside chat on March 24 at 4:15 PM Eastern. The forum will be held virtually, providing a platform for Avid to showcase its commitment to high-quality biologics contract development and manufacturing services. Avid specializes in CGMP manufacturing for biopharmaceuticals, leveraging 28 years of experience in the industry.

Avid Bioservices, Inc. (CDMO, CDMOP) announced a private placement of $125 million in exchangeable senior notes due 2026, scheduled to settle on March 12, 2021. The notes will have a 1.250% interest rate, maturing on March 15, 2026, and an initial exchange price of approximately $21.21 per share, reflecting a 32.5% premium. Net proceeds are estimated at $120.6 million, intended for refinancing existing preferred stock and general corporate purposes. The company has also entered into capped call transactions to mitigate potential stock dilution from note exchanges.

Avid Bioservices, Inc. (NASDAQ:CDMO, CDMOP) announced plans to sell $125 million in exchangeable senior notes due 2026 through its subsidiary, Avid SPV, LLC. The notes will be privately placed with qualified institutional buyers and will come with an option for an additional $18.75 million. Proceeds are earmarked for redeeming Series E Convertible Preferred Stock and general corporate purposes, including potential acquisitions. The notes will allow holders to exchange them for shares during specific periods. The offering is subject to market conditions.

Avid Bioservices reported a robust third-quarter revenue surge of 61% to $21.8 million, compared to $13.6 million in Q3 FY2020. The company secured $74 million in new orders, resulting in a historic backlog of $120 million. Gross margins significantly improved to 28%, up from 6% year-over-year. Avid raised its fiscal 2021 revenue guidance to $88-$91 million. The ongoing Myford facility expansion will enhance annual revenue capacity to $270 million. Cash on hand as of January 31, 2021, stands at $70.9 million.

Avid Bioservices, Inc. (NASDAQ:CDMO, CDMOP) has announced a quarterly cash dividend of $0.65625 per share on its 10.50% Series E Convertible Preferred Stock. The dividend will be payable on April 1, 2021, to holders of record by March 15, 2021. This payment reflects an annualized rate of 10.50%, based on a liquidation preference of $25.00 per share. Avid Bioservices specializes in biologics contract development and manufacturing with extensive experience in the biotechnology sector.

Avid Bioservices, Inc. (NASDAQ:CDMO, CDMOP) announced it will report its third-quarter fiscal year 2021 financial results on March 8, 2021, after market close. A conference call will be held at 1:30 PM PT (4:30 PM ET) to discuss these results and recent corporate developments. The company specializes in biologics contract development and manufacturing, focusing on high-quality services in the biotechnology and pharmaceutical sectors. With 28 years of experience, Avid offers comprehensive drug substance manufacturing and process development services.

Avid Bioservices has commenced Phase 2 of its Myford facility expansion to meet increasing customer demand.

This phase will introduce a second manufacturing train expected to cost between $45 million and $55 million and take 18 to 24 months to complete.

This expansion could increase annual revenue capacity by an additional $100 million, alongside the ongoing Phase 1, potentially raising total capacity to $270 million.

The company is optimistic about its growth trajectory and the successful integration of new clients.