New Laboratories Have Potential to Support an Additional $20 Million in Annual Process Development Revenue, Doubling Current Mammalian Cell Process Development Capacity

Expansion to Cost Approximately $6 Million with Completion Anticipated by End of Calendar 2022

TUSTIN, Calif., June 13, 2022 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ:CDMO), 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 the company is further expanding its process development capacity for its mammalian cell business. As part of these efforts, Avid is expanding its state-of-the-art laboratories which could support an additional $20 million in annual process development revenue, doubling the company’s current process development capacity. The company estimates that this expansion will cost approximately $6 million and completion is anticipated by the end of calendar 2022. This expansion follows previous investments in increased process development capacity made in fiscal year 2019 and the most recent addition of high throughput capabilities in both upstream and downstream processing in fiscal year 2022.

Process development represents a vital CDMO function and one through which Avid provides a critical advantage to customers in both early and late stages of development. This planned expansion further strengthens the company’s capabilities in the areas of R&D support, process development, process characterization and validation, and pilot scale production for a broad range of mammalian cell-based biotechnology products. The new suites will further enhance Avid’s ability to develop and deliver cost-effective, robust, scalable and compliant processes and to drive efficient and rapid on-boarding of new customer programs progressing to CGMP manufacturing.

“Avid continues to diligently and strategically expand our capacity across all segments of our CDMO business in order to ensure that we are always able to meet the needs of current and future customers. This latest project will generate additional upstream and downstream process development capacity at the front-end of our mammalian cell business, which is critical for the efficient on-boarding of new customer projects,” said Nick Green, president and chief executive officer of Avid Bioservices. “With several expansion projects underway across various facilities and business segments, we feel that we are well positioned to take advantage of the increasing demand for high-quality CDMO services and continue to rapidly grow our revenue.”

About Avid Bioservices, Inc.

Avid Bioservices is a dedicated contract development and manufacturing organization (CDMO) focused on development and CGMP manufacturing of biologics. The company provides a comprehensive range of process development, CGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With 28 years of experience producing monoclonal antibodies and recombinant proteins, Avid's services include CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing and regulatory submissions support. For early-stage programs the company provides a variety of process development activities, including upstream and downstream development and optimization, analytical methods development, testing and characterization. The scope of our services ranges from standalone process development projects to full development and manufacturing programs through commercialization. www.avidbio.com

Forward-Looking Statements

Statements in this press release which are not purely historical, including statements regarding Avid Bioservices, Inc.'s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties including, but not limited to, the risk that the company may experience delays in the construction of new process development laboratories. Our business could be affected by a number of other factors, including the risk factors listed from time to time in our reports filed with the Securities and Exchange Commission including, but not limited to, our annual report on Form 10-K for the fiscal year ended April 30, 2021 and subsequent quarterly reports on Form 10-Q, as well as any updates to these risk factors filed from time to time in our other filings with the Securities and Exchange Commission. We caution investors not to place undue reliance on the forward-looking statements contained in this press release, and we disclaim any obligation, and do not undertake, to update or revise any forward-looking statements in this press release except as may be required by law.

Contacts:
Stephanie Diaz (Investors)
Vida Strategic Partners 
415-675-7401 
sdiaz@vidasp.com

Tim Brons (Media)
Vida Strategic Partners
415-675-7402
tbrons@vidasp.com

Source: Avid Bioservices, Inc