Avid’s revenues rise 74%; discusses expansion plans
Growth in demand for biologics manufacturing services has helped Avid and it has invested to ensure it is well placed to handle rising demand, adding disposable technology that has helped grow revenues.
The contract manufacturing organisation (CMO) projects generating revenues of $35m this year, which includes deals with its parent company Peregrine Pharmaceuticals, but believes further growth is possible because its facility is only using 60 per cent of potential total capacity.
Avid has appointed a new leadership team to help realise the additional 40 per cent and after this is achieved may build more capacity. In a conference call with investors Paul Lytle, Peregrine’s chief financial officer, explained that the space exists to increase capacity “in a big way”.
This could potentially double current output and Lytle added that Avid may move into new markets, including testing services which he believes could provide “significant additional revenues”.
Christopher Eso, vice president of business operations at Avid, outlined further upstream and downstream market opportunities. Eso is initially looking at strategic partnerships to achieve this expansion but longer-term the company plans to improve its internal capabilities.
In addition to expanding into analytical testing Eso said that Avid may add capacity for proprietary expression system development and fill-finish. The decision regarding what areas to expand into will be made based on Peregrine’s production needs and demand from third-party clients.
Eso added that the growth in the monoclonal antibody (mAbs) pipeline, which he said includes 250 products in clinical trials or preclinical, is a trend Avid is hoping to benefit from by becoming “the first choice for their manufacturing needs”.
