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Avid Bioservices sinks 32% after Q3 Report

Plans to raise $160M in private placement

Shares of Avid Bioservices Inc. (Nasdaq: CDMO) fell about 32% in after-hours trading after the company reported fiscal third-quarter sales that missed analysts’ estimates and said it would offer $160 million in convertible senior notes in a private placement.

The Tustin-based drug contract manufacturer said third-quarter sales for the period ended Jan. 31 were $33.8 million, below the $41.6 million average analyst estimate. The company said it is maintaining revenue guidance for fiscal 2024 of $137 million to $147 million.

The decrease in revenue “was primarily attributed to fewer manufacturing runs and a reduction in process development services from early-stage customers,” Avid said in a statement.

The company expects to use the net proceeds from the $160 million offering to repurchase for cash a portion of its 1.250% exchangeable senior notes due 2026 and unwind its capped call transactions with respect to the 2026 notes.

Shares fell to $5.80 in after-hours trading; in regular trading, they had risen 5.9% to $8.79 and a $556 million market cap. Prior to today, the shares had more than doubled from their 52-week low of $4.07 in December.

 

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Peter J. Brennan
Peter J. Brennan
Peter J. Brennan has been a journalist for 40 years. He spent a decade in Latin America covering wars, narcotic traffickers, earthquakes, and business. His resume includes 15 years at Bloomberg News where his headlines and articles sometimes moved the market caps of companies he covered by hundreds of millions of dollars. His articles have been published worldwide, including the New York Times and the Washington Post; he's appeared on CNN, CBC, BBC, and Bloomberg TV. He was awarded a Kiplinger Fellowship at The Ohio State University.
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