Tustin-based Avid Bioservices Inc. (Nasdaq: CDMO), a pharmaceutical contract manufacturer that’s seen its share of change the past year, might be returning to the light as its stock gains traction, and the attention of a new analyst.
H.C. Wainwright & Co. analyst Joseph Pantginis started Avid with a buy rating and a $5 target price—a price the $225 million-valued company hasn’t seen since last December. Shares now trade around $4.
Avid provides investors an opportunity to back a contract manufacturer, most of which are private, Pantginis wrote in a recent note to investors.
The company now has three analysts. Their consensus estimate is that revenue will decline about 2.2% to $52.4 million for the fiscal year ended April 30, and will climb 31% to $68.8 million next year.
The company hasn’t yet announced when it will report financial results for the fourth quarter. Last year, it reported fourth-quarter results in mid-July.
CEO Switch
Avid’s stock has been on a largely downward slope since last summer, and fell more than 20% to $3.43 in early May after the departure of Roger Lias, who unexpectedly resigned as chief executive and from its board of directors.
No reason was given for the departure of Lias, who held the post since 2017.
Lias oversaw a number of corporate changes prior to his departure.
Avid in 2018 changed its name, stopped developing new cancer drugs and focused on contract manufacturing. It was previously known as Peregrine Pharmaceuticals.
Rick Hancock, who is on the board, was named interim chief executive last month.
Most recently, Hancock served as president at Althea Technologies Inc. until its acquisition by Ajinomoto.
Hancock’s experience includes senior positions at The Immune Response Corp., Genetics Institute Inc., a division of Pfizer Inc., and Hybritech Inc., which is part of Eli Lily and Co.
Recent Rebound
Since mid-May, the company’s stock has seen improvements; it was up 17% to about $4 as of last week.
It’s still below its 52-week high of $7.33 last September.
The company employed about 185 people as of a year ago and operates out of multiple facilities not far from the The Market Place shopping center in Tustin and Irvine. Those buildings total about 183,000 square feet of office, warehouse and manufacturing space, according to the company’s last annual report.
