Files Definitive Proxy Statement and Mails Letter to StockholdersTUSTIN, Calif., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ: CDMO) (“Avid” or the “Company”), a dedicated biologics contract development and manufacturing organization (“CDMO”) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today announced that it has commenced mailing definitive proxy materials and a letter to stockholders in ...

Financial Performance - Revenues for the second fiscal quarter ended October 31, 2024, were $33.5 million, an increase of 32% or $8.1 million compared to the same period in the prior year[119] - Revenues for the six months ended October 31, 2024, were $73.7 million, an increase of approximately $10.5 million, or 17%, compared to $63.1 million for the same period in 2023[142] - Gross loss for the three months ended October 31, 2024, was $2.0 million, improving from a gross loss of $4.7 million in the same period last year[134] - Gross profit for the six months ended October 31, 2024, was $3.7 million, representing a 5% gross margin, compared to a gross loss of $0.6 million (negative 1% gross margin) for the same period in the prior year[143] - Operating loss for the three months ended October 31, 2024, was $12.6 million, compared to an operating loss of $11.2 million in the same period last year[136] - Operating loss for the six months ended October 31, 2024, was $15.1 million, an increase of $1.7 million compared to a loss of $13.4 million in the same period in 2023[146] - Interest expense increased to $3.3 million for the three months ended October 31, 2024, up approximately $2.4 million from the prior year[137] - Interest expense rose to $5.7 million for the six months ended October 31, 2024, compared to $1.7 million for the same period in the prior year, reflecting an increase of approximately $4.1 million[147] - Other income (expense), net, was an expense of $1.5 million for the three months ended October 31, 2024, compared to income of $0.1 million in the same period last year[138] - Other income (expense), net, was an expense of $2.1 million for the six months ended October 31, 2024, compared to income of $0.4 million for the same period in the prior year, a decrease of $2.5 million[148] - The company recorded no income tax benefit for the three months ended October 31, 2024, compared to a tax benefit of $2.4 million in the same prior year period[139] Backlog and Future Revenue - The company ended the quarter with a backlog of approximately $220 million, up from approximately $199 million at the end of the same quarter in fiscal 2024[119] - As of October 31, 2024, the company's backlog was approximately $220 million, an increase from approximately $193 million as of April 30, 2024[171] - The company anticipates a significant portion of its backlog will be recognized as revenue over the next five fiscal quarters, but it is subject to risks such as customer cancellations and supply chain delays[171] Expenses and Costs - Selling, general and administrative (SG&A) expenses increased to $10.6 million, a rise of 61% or $4.0 million compared to the prior year[135] - SG&A expenses increased to $18.8 million for the six months ended October 31, 2024, up $5.9 million, or 46%, from $12.8 million in the prior year[144] Cash and Capital Expenditures - As of October 31, 2024, the company had cash and cash equivalents of $33.4 million, which is expected to be sufficient to fund operations for at least the next 12 months[151] - Net cash provided by operating activities for the six months ended October 31, 2024, was $314,000, a decrease of $5.7 million compared to $6.0 million for the same period in 2023[154] - The company anticipates capital expenditures of approximately $5 million to $7 million during fiscal 2025[164] Merger Agreement - The company entered into a Merger Agreement on November 6, 2024, with Space Finco, Inc., which will result in the company becoming a wholly owned subsidiary[120] - On November 6, 2024, the company entered into a Merger Agreement, which includes customary covenants regarding the conduct of its business prior to the closing of the Merger[165] - The company may terminate the Merger Agreement if the Merger is not consummated by May 6, 2025, with a possible extension to November 6, 2025[167] Accounting Policies and Market Risks - There were no significant changes in the company's critical accounting policies during the six months ended October 31, 2024[168] - The company has made estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses based on historical experience[168] - There were no material changes in the market risks described in the company's Annual Report on Form 10-K during the six months ended October 31, 2024[172] Growth Strategy - The company aims to increase its operating profit margin to best-in-class within the industry as part of its growth strategy[117]

Financial Results - Avid Bioservices, Inc. reported financial results for the second quarter ended October 31, 2024[6]. - The company issued a press release on December 10, 2024, detailing its financial performance[6]. - Specific financial metrics and user data were not disclosed in the provided documents[6]. - No additional financial data or performance metrics were provided in the current report[6]. Future Outlook - Future outlook and performance guidance were not included in the current report[6]. Strategic Moves - The company is preparing to file a proxy statement related to a proposed transaction, indicating potential strategic moves[8]. Product and Market Information - Information regarding new products, technologies, or market expansion was not available in the provided content[6]. Executive Oversight - The company’s Chief Financial Officer, Daniel R. Hart, signed the report, indicating executive oversight[15]. Regulatory Classification - The company is classified as a registrant under the Securities Exchange Act of 1934[4]. Additional Information - The press release attached as Exhibit 99.1 may contain further details on financial performance and strategy[10].

Core Insights - The focus is on identifying small companies with high growth potential and defensible competitive advantages, aiming for considerable operational leverage [1][2]. Group 1: Investment Strategy - The investment approach involves a buy and hold strategy with tranche purchases of stocks of interest, emphasizing a portfolio that incorporates small, high-growth potential stocks [2]. - The service offers real-time buy and sell signals, along with a community for active trading discussions [1]. Group 2: Portfolio Management - The portfolio includes a watchlist of similar stocks, providing buy alerts and market updates to assist investors [2]. - The analyst aims to mitigate risks through a diversified portfolio approach while seeking multi-bagger potential in small companies [2].

Market Overview - The global semi-solid dosage CDMO market is projected to reach USD 67.4 billion by 2030, growing at a CAGR of 11.80% from 2024 to 2030 [1][8] - The market was valued at USD 31.1 billion in 2023 [8] Drivers of Market Growth - The increasing trend towards personalized medicine and demand for innovative drug delivery systems are key drivers [2] - Patients favor semi-solid formulations like creams, gels, and ointments for their ease of application and rapid absorption [2] - The rising prevalence of skin disorders, particularly acne affecting approximately 50 million people in the U.S. annually, is driving demand for topical formulations [3] - Technological advancements, including nanotechnology and advanced emulsion techniques, have improved the efficacy and stability of semi-solid formulations [4] - The growing prevalence of chronic diseases and an aging population are contributing to the demand for effective semi-solid formulations [5] Market Segmentation - The topical segment dominated the market with a share of 88.48% in 2023, particularly effective for localized treatments [6] - Creams and lotions led the route of administration in 2023, offering benefits such as ease of application and enhanced skin absorption [6] - The contract manufacturing segment accounted for the largest revenue share in 2023, as pharmaceutical companies increasingly outsource manufacturing to focus on R&D [6] - The pharmaceutical companies segment also held the largest revenue share in 2023 due to rising demand for innovative therapeutic solutions [6] Regional Insights - North America dominated the market with a share of 41.12% in 2023, driven by the increasing prevalence of chronic diseases and demand for advanced therapeutic solutions [6] Competitive Landscape - Key players in the semi-solid dosage CDMO market include The Lubrizol Corporation, Cambrex Corporation, Contract Pharmaceuticals Limited, Bora Pharmaceutical, and others [7]

Core Viewpoint - Monteverde & Associates PC is investigating Avid Bioservices, Inc. regarding its proposed acquisition by GHO Capital Partners and Ampersand Capital Partners, which involves a cash offer of $12.50 per share for all outstanding shares held by Avid's stockholders [1]. Group 1: Company Overview - Avid Bioservices, Inc. is the subject of an acquisition proposal by GHO Capital Partners and Ampersand Capital Partners [1]. - The acquisition terms specify a cash payment of $12.50 per share for Avid's stockholders [1]. Group 2: Legal Firm Information - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report and has a successful track record in recovering money for shareholders [1]. - The firm operates from the Empire State Building in New York City and specializes in class action securities litigation [2].

Group 1 - Rowley Law PLLC is investigating potential securities law violations by Avid Bioservices, Inc. and its board of directors regarding the proposed acquisition by GHO Capital Partners LLP and Ampersand Capital Partners [1] - Stockholders of Avid Bioservices will receive $12.50 for each share they hold in the company [1] - The acquisition transaction is valued at approximately $1.1 billion and is expected to close in the first quarter of 2025 [1] Group 2 - Avid Bioservices, Inc. stockholders interested in the investigation can obtain additional information through Rowley Law PLLC [2] - Rowley Law PLLC represents shareholders nationwide in class actions and derivative lawsuits in complex corporate litigation [3]

Core Viewpoint - Wohl & Fruchter LLP is investigating the fairness of Avid Bioservices' proposed sale to GHO Capital Partners and Ampersand Capital Partners for $12.50 per share, which is below the $14.00 price target set by Wall Street analyst Paul Knight of KeyBanc [1][3]. Group 1 - Avid Bioservices has agreed to be sold for $12.50 per share in cash [2]. - The investigation focuses on whether the Avid Board of Directors acted in the best interests of shareholders and if the sale price is fair [3]. - The law firm is also examining if all material information regarding the transaction has been fully disclosed [3].

Core Insights - Scinai Immunotherapeutics Ltd. will showcase its innovative inflammation and immunology product pipeline and CDMO services at the BIO-Europe 2024 conference in Stockholm, Sweden from November 4-6, 2024 [1] Company Overview - Scinai Immunotherapeutics Ltd. specializes in inflammation and immunology biological products and offers CDMO services through its Scinai Bioservices unit [1][4] - The company has two business units: one focused on developing biological therapeutic products using nanosized VHH antibodies (NanoAbs) and the other providing CDMO services to early-stage biotech companies [4] Conference Participation - CEO Mr. Amir Reichman and CTO Dr. Dalit Weinstein-Fischer will hold meetings with prospective clients for CDMO services, potential pharma partners for co-development of NanoAbs, and investors interested in SCNI's value proposition [2] - Scinai will be available at exhibitor booth 150 to showcase its CDMO services throughout the conference [3]

Core Insights - Avid Bioservices, Inc. will participate in the Craig-Hallum Bioprocessing Conference, featuring a fireside chat with CEO Nick Green and VP Pramthesh Patel on September 19, 2024 [1][2] Company Overview - Avid Bioservices is a dedicated contract development and manufacturing organization (CDMO) focused on biologics, providing a comprehensive range of services including CGMP clinical and commercial manufacturing, bulk packaging, and regulatory submissions support [3] - The company has over 30 years of experience in producing biologics and offers services that range from standalone process development to full development and manufacturing programs through commercialization [3]