Avid Bioservices Begins Phase 2 of its Myford Manufacturing Capacity Expansion Plan
February 22 2021 - 8:05AM
Avid Bioservices, Inc. (NASDAQ:CDMO) (NASDAQ:CDMOP), 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 the
initiation of Phase 2 of the company’s two-phase effort to expand
the overall manufacturing capacity within its Myford facility. Work
is now underway to further build out the company’s Myford facility
to include a second manufacturing train with both upstream and
downstream processing suites, known as Myford South.
Avid’s decision to initiate Phase 2 of the
Myford expansion was driven by an increase in projected customer
demand for the company’s manufacturing services. Based on
conceptual plans, the company expects the Myford South build out to
take 18 to 24 months to complete at a cost of approximately $45
million to $55 million. Upon completion, Avid estimates that the
addition of Myford South has the potential to increase the
company’s annual revenue generating capacity by an additional $100
million.
The ongoing Phase 1 of the Myford expansion,
which expands the production capacity of the company’s existing
manufacturing train within the northern side of the Myford facility
(Myford North) by adding a second downstream processing suite, was
initiated in the fourth quarter of calendar 2020. The company
estimates the first phase will take approximately 12 to 15 months
to complete at an estimated cost of approximately $15
million and may increase the company’s annual revenue
generating capacity by an additional $50 million.
With the addition of the potential annual
revenue generating increases associated with Phase 1 (up to $50
million) and Phase 2 (up to $100 million) of the ongoing Myford
expansion, Avid’s total combined annual revenue generating capacity
could reach up to $270 million.
“With the continued strong growth that we have
experienced in both revenue and customer demand in recent months
and quarters, we feel that Avid is in a strong position to kick off
the second phase of our Myford facility expansion. With that in
mind, we are happy to announce the commencement of build-out
activities for Myford South, which once operational has the
potential to generate up to an additional $100 million in revenue
for Avid annually,” said Nicholas Green, president and chief
executive officer of Avid Bioservices. “Upon completion,
Myford South will serve as a valuable complement to our existing
Myford North manufacturing suites, allowing Avid to continue to
provide capacity for both our existing customers, as well as being
able to onboard new clients in a timely manner and meet the ever
increasing demand for quality CDMO services within the biologics
industry.”
About Avid
Bioservices, Inc.
Avid Bioservices is a dedicated contract
development and manufacturing organization (CDMO) focused on
development and CGMP manufacturing of biopharmaceutical drug
substances derived from mammalian cell culture. 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 the Phase 1 and/or Phase 2 expansions of the Myford
facility. 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, 2020 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
415-675-7401
sdiaz@vidasp.com
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