Welcome to our dedicated page for Avid Bioservices news (Ticker: CDMO), a resource for investors and traders seeking the latest updates and insights on Avid Bioservices stock.
Avid Bioservices, Inc. (formerly traded on Nasdaq under the symbol CDMO) is a dedicated biologics contract development and manufacturing organization (CDMO) focused on development and CGMP manufacturing of biologics for biotechnology and biopharmaceutical customers. The news flow around Avid covers both its operational role as a biologics CDMO and significant corporate events that have reshaped its status as a public company.
News items for Avid include announcements about its all-cash acquisition by funds managed by GHO Capital Partners LLP and Ampersand Capital Partners, a transaction valued at approximately $1.1 billion. Coverage details the definitive merger agreement, the approval of the transaction by Avid stockholders, and subsequent confirmation that the company’s common stock has ceased trading and will be delisted from Nasdaq, with Avid continuing to operate under its existing name and brand as a privately held company.
In addition to merger and delisting developments, Avid’s news feed features financial results for recent quarters, highlighting revenues from biologics manufacturing and process development, backlog levels, and commentary on demand from biotechnology and pharmaceutical customers. Releases also describe new business signings, including early-phase and late-stage programs, and reference the company’s investments in infrastructure, facilities, capacity and capabilities.
Another important category of news relates to capital structure and securities, such as the company’s 7.00% Convertible Senior Notes due 2029. Avid has issued notices to noteholders describing Fundamental Change and Make-Whole Fundamental Change events triggered by the closing of the merger, along with associated repurchase and conversion rights.
Investors and researchers can use the CDMO news page on Stock Titan as an archive of these developments, from Avid’s period as a publicly traded biologics CDMO through its acquisition and transition to private ownership.
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.
Avid Bioservices (NASDAQ:CDMO, CDMOP) has entered a manufacturing services agreement with Humanigen to enhance production of lenzilumab, a monoclonal antibody for treating COVID-19. This partnership aims to deliver cGMP drug substance batches to support Humanigen's regulatory filings for emergency use authorization (EUA) and a future Biologics License Application (BLA). The collaboration focuses on scalable manufacturing to ensure patient access as Humanigen completes its Phase 3 clinical trial with 520 patients enrolled.
Avid Bioservices (NASDAQ:CDMO, CDMOP) and Humanigen (NASDAQ:HGEN) have entered a manufacturing services agreement to boost production for lenzilumab, aimed at treating COVID-19. This collaboration will involve cGMP drug substance batches essential for Humanigen’s upcoming regulatory filings, including emergency use authorization (EUA) and a Biologics License Application (BLA). Humanigen has successfully completed enrollment in a 520-patient Phase 3 clinical trial. Both companies emphasize their commitment to enhancing therapeutic access amid the ongoing pandemic.
Avid Bioservices, Inc. (NASDAQ:CDMO, CDMOP) has completed its public offering of 3,833,335 shares at $9.00 per share, yielding approximately $34.5 million in gross proceeds. The offering included 500,000 shares sold via the underwriters’ option. Funds will primarily enhance manufacturing capabilities and support general corporate activities. RBC Capital Markets led the offering, with Craig-Hallum and Stephens acting as co-managers. The shares were registered under an effective SEC Form S-3, with a final prospectus supplement filed. This is a strategic move aimed at bolstering operational growth.
Avid Bioservices, Inc. (NASDAQ:CDMO, CDMOP) announced a public offering of 3,333,335 shares at $9.00 each, potentially raising approximately $30 million. The offering, expected to close around December 14, 2020, allows underwriters a 30-day option for an additional 500,000 shares. Proceeds will primarily expand manufacturing capabilities and cover general corporate purposes. RBC Capital Markets is the sole book-running manager. The offering is made under an effective shelf registration statement with the SEC.