Avid Bioservices, Inc. (CDMO) | Investment Case

1. Company Snapshot

1.a. Company Description

Avid Bioservices, Inc., a contract development and manufacturing organization, provides process development and current good manufacturing practices (CGMP) clinical and commercial manufacturing services focused on biopharmaceutical drug substances derived from mammalian cell culture.The company produces monoclonal antibodies and recombinant proteins; and offers services, including CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submission and support.It also provides various process development services, such as upstream and downstream development and optimization, analytical methods development, testing, and characterization.

The company serves biotechnology and biopharmaceutical industries.The company was formerly known as Peregrine Pharmaceuticals, Inc.and changed its name to Avid Bioservices, Inc.

in January 2018.Avid Bioservices, Inc.was incorporated in 1981 and is headquartered in Tustin, California.

Show Full description

1.b. Last Insights on CDMO

Avid Bioservices' recent performance was driven by strong Q2 2024 earnings, with revenue increasing 22.5% year-over-year to $73.3 million. The company's contract development and manufacturing organization (CDMO) business showed strength, with a backlog of $440.9 million. Additionally, the announcement of a merger with GHO Capital Partners and Ampersand Capital Partners for $12.50 per share in cash may have contributed to the company's recent activity.

1.c. Company Highlights

Last Price	12.49
Change Percentage	0.00%
Open	12.49
Previous Close	12.49
Market Cap ( Millions)	799
Volume	0
Year High	12.51
Year Low	5.9
M A 50	12.36
M A 200	10.25

FCF Yield	0.68%
Dividend Yield	0.00%
ROE	-44.35%
Debt / Equity	458.68%
Net Debt / EBIDTA	-1652.69%
Price To Book	17.79
Price Earnings Ratio	-34.76
Price To FCF	148.11
Price To sales	10.85
EV / EBITDA	-93.24

2. Transcript Summary

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3. NewsRoom

Scinai Reports Nine-Month 2025 Results as CDMO Growth Continues and NanoAbs Pipeline Advances

Dec -02

Source: prnewswire.com

Elevaris introduit des services CDMO et une gamme d'aiguilles de procédure dans la région EMEA

Nov -04

Source: prnewswire.com

Elevaris führt CDMO-Dienstleistungen und ein Portfolio von Verfahrensnadeln in EMEA ein

Nov -04

Source: prnewswire.com

Elevaris Introduces CDMO Services, Procedural Needle Portfolio to EMEA

Nov -04

Source: prnewswire.com

Elevaris presenta sus servicios de CDMO y su gama de agujas para procedimientos en EMEA

Nov -04

Source: prnewswire.com

Samsung Biologics completes spin-off to strengthen its focus as a pure-play CDMO

Nov -03

Source: prnewswire.com

BioHarvest Sciences Announces Strategic CDMO Partnership to Revolutionize Saffron Compound Production with Botanical Synthesis

Oct -30

Source: newsfilecorp.com

Resilience Announces Long-Term Financing of up to $825 Million to Accelerate CDMO Strategy

Oct -29

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.40%)

6. Segments

Mammalian Cell Culture

Expected Growth: 12.4%

The mammalian cell culture market is driven by increasing demand for recombinant proteins and antibodies, advancements in biomanufacturing technologies, and growing investments in biopharmaceutical research and development.

Process Development

Expected Growth: 12.4%

Increasing demand for biologics, advancements in biopharmaceutical manufacturing, and growing need for efficient and cost-effective production processes drive growth in Avid Bioservices' Process Development segment.

7. Detailed Products

Process Development

Avid Bioservices provides process development services to help clients optimize their biologics manufacturing processes, including cell line development, upstream and downstream process development, and analytical method development.

cGMP Manufacturing

Avid Bioservices offers cGMP manufacturing services for biologics, including mammalian cell culture, microbial fermentation, and viral vector production.

Analytical Services

Avid Bioservices provides analytical services, including method development, validation, and testing, to support biologics development and manufacturing.

Fill/Finish Services

Avid Bioservices offers fill/finish services for biologics, including vial filling, syringe filling, and cartridge filling.

Cell Banking

Avid Bioservices provides cell banking services, including master cell bank development, working cell bank development, and cell bank storage.

8. Avid Bioservices, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Avid Bioservices, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the emergence of new technologies and innovations in the biotechnology industry.

Bargaining Power Of Customers

Avid Bioservices, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's specialized services and expertise give it an upper hand in negotiations with customers.

Bargaining Power Of Suppliers

Avid Bioservices, Inc. relies on a few key suppliers for raw materials and equipment, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate contracts mitigate this risk.

Threat Of New Entrants

The biotechnology industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. This makes it difficult for new entrants to compete with Avid Bioservices, Inc.

Intensity Of Rivalry

The biotechnology industry is highly competitive, with many established players competing for market share. Avid Bioservices, Inc. must continually innovate and differentiate itself to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	49.97%
Debt Cost	4.91%
Equity Weight	50.03%
Equity Cost	11.74%
WACC	8.33%
Leverage	99.87%

11. Quality Control: Avid Bioservices, Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Daré Bioscience

A-Score: 4.8/10

Value: 10.0

Growth: 6.9

Quality: 8.6

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

Quantum-Si

A-Score: 4.3/10

Value: 7.0

Growth: 4.8

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

Shattuck Labs

A-Score: 3.6/10

Value: 7.8

Growth: 1.1

Quality: 3.8

Yield: 0.0

Momentum: 8.5

Volatility: 0.3

1-Year Total Return ->

Avid Bioservices

A-Score: 3.6/10

Value: 4.2

Growth: 4.4

Quality: 1.4

Yield: 0.0

Momentum: 7.5

Volatility: 4.0

1-Year Total Return ->

4D Molecular Therapeutics

A-Score: 2.9/10

Value: 7.0

Growth: 1.3

Quality: 3.6

Yield: 0.0

Momentum: 4.5

Volatility: 1.0

1-Year Total Return ->

Keros Therapeutics

A-Score: 2.6/10

Value: 5.8

Growth: 0.3

Quality: 6.8

Yield: 0.0

Momentum: 0.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

47.67%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.33%

Avid Bioservices, Inc. - US05368M1062

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CDMO

1.c. Company Highlights

Lower Quality

Higher Growth

Weak Momentum

Earnings Miss

Revenues Miss

Medium Volatility

Revenues Beats

Stable Momentum

Strong Momentum

Average Growth

Fairly Valued

Less Volatile

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.40%)

6. Segments

Mammalian Cell Culture

Expected Growth: 12.4%

Process Development

Expected Growth: 12.4%

7. Detailed Products

Process Development

cGMP Manufacturing

Analytical Services

Fill/Finish Services

Cell Banking

8. Avid Bioservices, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Avid Bioservices, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.49$

Current Price

12.49$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA