Avid Bioservices Inc (NASDAQ:CDMO) reported an increase of 66% YoY to $25.4 million in revenues in Q1 2021. Higher revenues in Q1 2021 are also on the backdrop of production runs deferred in Q3 and Q4 2020. It expects to maintain the same demand for its contract manufacturing and development services for pharmaceutical and biotechnology companies in the future to improve the lives of people.
Adds three new customers
Avid Bioservices began 2021 with a strong start because of its achievements in Q1. The company signed new contracts with three customers – Oragenics, Inc., IBI (Iovance Biotherapeutics, Inc.), and Mapp Biopharmaceutical, Inc., in Q1 2021. It also won several project expansion orders from the existing customers. The company is making preparations to satisfy the growing demand for its development and production services throughout this year.
Significant progress in important projects
CEO of Avid Bioservices, Nicholas Green, said the company achieved significant achievements in important operational projects in the recent period. The company’s several production runs are disrupted in Q3 and Q4 2020 because of trouble with the equipment. It rectified the problem and completed the interrupted production in Q1 2021 to post better growth.
Avid Bioservices commenced an annual preventive annual maintenance program to ensure all its equipment is running and prevent the problems’ recurrence. It already completed the Franklin facility’s preventive maintenance and expects to complete the work at its Myford facility soon.
Allocates resources and design for expansion services
Avid Bioservices receives great demand from its customers for expansion plans, which is vital for sustaining growth going forward. It already achieved significant progress in some of the expansion plans. The company is putting in significant resources and time for the pre-engineering, design, and review activities on this front.
Nicholas said he returned from overseas and joined the company in July 2020. According to him, Avid Bioservices has significant growth potential, mainly in biologics, which is one of the growing segments in the industry. The company evolved into a growth organization under the leadership of his predecessor – Rick Hancock.
Avid Bioservices expects to post revenues of between $76 million and $81 million in 2021. It expects that demand for superior quality biologics capacity will continue and on track to achieve the stated growth. The company will clear a larger percentage of the backlog worth $60 million this year.
To support drug production, Avid Bioservices signed a co-marketing accord with Argonaut Manufacturing Services.