Avid Bioservices, Inc. ( (CDMO) ) has released its Q2 earnings. Here is a breakdown of the information Avid Bioservices, Inc. presented to its investors.
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Avid Bioservices, Inc. is a biologics contract development and manufacturing organization (CDMO) providing development and manufacturing services to biotechnology and pharmaceutical industries.
In its recent earnings report for the second quarter ended October 31, 2024, Avid Bioservices highlighted its financial performance and strategic developments, including a significant increase in revenues and an impending acquisition by GHO Capital Partners and Ampersand Capital Partners.
The company reported a 32% increase in second-quarter revenues to $33.5 million compared to the same period last year, with a backlog rising by 11% to $220 million. Despite this revenue growth, the company faced a net loss of $17.4 million, attributed to increased SG&A expenses driven by compensation, benefits, and legal fees. Avid Bioservices also announced an acquisition agreement valued at approximately $1.1 billion, which will see GHO and Ampersand acquire the company at a premium price per share.
Looking forward, Avid Bioservices is set to continue its operations under its current name and brand post-acquisition, with an expected closure of the transaction in early 2025, subject to regulatory approvals. The financial markets will be keenly observing how this acquisition impacts the company’s strategic growth and financial performance moving forward.
