Avid Bioservices Reports Financial Results for Third Quarter of Fiscal Year 2018 and Recent Developments
Company Remains on Target for Full Year Revenue of
Intensified Business Development Effort Results in New Customer Contract and Strengthened Backlog
"During and subsequent to our third quarter of fiscal year 2018, Avid
completed two primary objectives. We successfully divested the company's lead immuno-oncology assets to an organization with the financial resources and expertise to advance them, and we established a new operational structure that will allow our business to take full advantage of the substantial and growing demand for biologics manufacturing," said
Recent CDMO Developments
- Advanced eight current clients, some with multiple projects, through various stages of development.
- Selected by
Acumen Pharmaceuticals, Inc.to provide process development and clinical manufacturing services in support of ACU193, which is being developed for the treatment of Alzheimer's disease.
° Avid and
Acumenwill immediately commence process development work with the goal of creating a robust, cost-effective and scalable process to support cGMP manufacture of ACU193.
Recent Corporate Developments and Financial Highlights
- Changed company name from
Peregrine Pharmaceuticals, Inc.to Avid Bioservices, Inc.
° As the Avid name is recognized in the industry for CDMO excellence and biologics manufacturing expertise, the brand is an important asset in the company's transition to a dedicated CDMO business. The company also adopted the new NASDAQ ticker symbol, "CDMO" (NASDAQ:CDMO).
- Reconstituted board of directors
including six independent directors, all with significant CDMO experience.
- Entered into an Asset Assignment and Purchase Agreement with
Oncologie, Inc.for Avid's phosphatidylserine (PS)-targeting program including bavituximab.
° Avid expects to receive an aggregate of $8.0 million in upfront payments over a period of six months and will be eligible to receive up to $95.0 million in development, regulatory and commercialization milestones.
Oncologie, Inc.will be responsible for all future research, development and commercialization of bavituximab, and related intellectual property costs.
° Avid will receive royalties on net sales that are upward tiering into the mid-teens.
° Oncologie will enter into an agreement with Avid for future contract development and manufacturing activities in support of bavituximab.
- Completed a public offering of 10,294,445 shares of common stock raising gross proceeds of approximately
° Avid intends to use the net proceeds from the offering to support the growth of its contract manufacturing business and general corporate purposes.
- The company maintains its manufacturing revenue guidance for the full FY 2018 of $50.0 million - $55.0 million.
- The current manufacturing revenue backlog has increased to $39 million.
- Contract manufacturing revenue from Avid's clinical and commercial biomanufacturing services was
$6.8 millionfor the third quarter of FY 2018 compared to $10.7 million for the third quarter of FY 2017. The decline was primarily due to lower demand from one of our largest customers.
- Cost of contract
manufacturing increased to
$11.0 millionin the third quarter of FY 2018 compared to $8.0 millionfor the third quarter of FY 2017. The current period increase in cost of manufacturing is primarily attributed to idle capacity costs of $5.3 milliondue to lower facility and personnel utilization compared to no idle capacity costs reported in the same prior year quarter.
- Selling, general and administrative expenses for the third quarter of FY 2018 were
$4.8 million, compared to $4.4 millionfor the third quarter of FY 2017. The current period increase in costs was primarily due to legal and other related fees associated with the settlement agreement with certain investors regarding the composition of the company's board of directors and legal and advisory fees associated with the Asset Assignment and Purchase Agreement with Oncologie, Inc.
- As of
January 31, 2018, the company's research and development segment met all the conditions to be classified as a discontinued operation. Accordingly, the operating results of our research and development segment are reported as a loss from discontinued operations for all periods presented.
- Avid's consolidated net loss attributable to common stockholders was
$12.4 millionor $0.28per share, for the third quarter of FY 2018, compared to a net loss attributable to common stockholders of $9.2 million, or $0.25per share, for the same prior year quarter.
- Avid reported
$17.9 millionin cash and cash equivalents as of January 31, 2018, compared to $46.8 millionat fiscal year ended April 30, 2017. Following the completion of a public offering during February 2018, the company had cash and cash equivalents of $41.7 millionas of February 28, 2018.
More detailed financial information and analysis may be found in Avid's Quarterly Report on Form 10-Q, which will be filed with the
Avid will host a conference call and webcast this afternoon,
To listen to the conference call, please dial (877) 312-5443 or (253) 237-1126 and request the
Statements in this press release which are not purely historical, including statements regarding
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
|Three Months Ended ||
Nine Months Ended |
|Contract manufacturing revenue||$||6,819,000||$||10,747,000||$||46,678,000||$||39,726,000|
|Cost of contract manufacturing||10,951,000||7,974,000||47,641,000||26,477,000|
| Gross profit (loss)||(4,132,000||)||2,773,000||(963,000||)||13,249,000|
|Selling, general and administrative||4,824,000||4,365,000||12,273,000||13,602,000|
|Total operating expenses||4,824,000||4,365,000||13,531,000||13,602,000|
|Other income (expense):|
|Interest and other income||42,000||25,000||83,000||71,000|
|Interest and other expense||(14,000||)||(2,000||)||(18,000||)||(2,000||)|
|Loss from continuing operations||$||(8,928,000||)||$||(1,569,000||)||$||(14,429,000||)||$||(284,000||)|
|Loss from discontinued operations||(2,076,000||)||(6,205,000||)||(10,404,000||)||(22,603,000||)|
|Series E preferred stock accumulated dividends||(1,442,000||)||(1,442,000||)||(3,604,000||)||(3,558,000||)|
|Net loss attributable to common stockholders|
|Basic and diluted weighted average common shares outstanding(1):|| |
|Basic and diluted net loss per common share attributable to common stockholders (1):|
|Net loss per share attributable to common stockholders||$||(0.28||)||$||(0.25||)||$||(0.63||)||$||(0.75||)|
|(1) All share and per share amounts of our common stock for all prior fiscal year periods presented have been retroactively adjusted to reflect the one-for-seven reverse stock split of our issued and outstanding common stock, which took effect on |
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CONDENSED CONSOLIDATED BALANCE SHEETS
|Cash and cash equivalents||$||17,938,000||$||46,799,000|
|Trade and other receivables||7,967,000||7,742,000|
|Total current assets||41,029,000||89,100,000|
|Property and equipment, net||26,325,000||26,515,000|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued clinical trial and related fees||5,503,000||4,558,000|
|Accrued payroll and related costs||3,876,000||6,084,000|
|Other current liabilities||749,000||993,000|
|Total current liabilities||36,274,000||62,931,000|
|Deferred rent, less current portion||2,064,000||1,599,000|
|Commitments and contingencies|
|Preferred stock—$0.001 par value; authorized 5,000,000 shares; 1,647,760 issued and outstanding at || |
|Common stock—$0.001 par value; authorized 500,000,000 shares; |
45,257,180 and 44,014,040 issued and outstanding at
|Additional paid-in capital||593,621,000||590,971,000|
|Total stockholders' equity||31,519,000||53,582,000|
|Total liabilities and stockholders' equity||$||69,857,000||$||118,112,000|
Stephanie Diaz(Investors) Vida Strategic Partners 415-675-7401 email@example.com Tim Brons(Media) Vida Strategic Partners415-675-7402 firstname.lastname@example.org
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