Avid Bioservices, a contract development and manufacturing organization, has recently released its 10-Q report, providing insights into its financial performance. The company, headquartered in Tustin, California, offers comprehensive process development and manufacturing services for biologics to the biotechnology and biopharmaceutical industries. These services include clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submission and support.
In the 10-Q report, Avid Bioservices outlined its strategic objectives, including investing in additional manufacturing capacity, broadening market awareness, expanding its customer base, and increasing its operating profit margin. The company also highlighted its third-quarter achievements, such as expanding its customer base and programs with existing customers and completing the construction of a cell and gene therapy facility in January 2024.
When analyzing the financial measures, Avid Bioservices reported that its revenues for the three months ended January 31, 2024, were $33.8 million, a decrease of 11% compared to the same period in the prior year. The company attributed this decline to decreases in manufacturing runs and process development services from early-stage programs. Additionally, the gross profit for the same period was $2.4 million, representing a 7% gross margin, down from $9.8 million and a 26% gross margin in the prior year.
Furthermore, the company reported an operating loss of $4.0 million for the three months ended January 31, 2024, compared to an operating income of $2.7 million for the same period in the prior year. This decrease in operating income (loss) was primarily driven by the decrease in gross profit, partially offset by the decrease in selling, general, and administrative expenses.
For the nine months ended January 31, 2024, Avid Bioservices reported revenues of $96.9 million, a decrease of approximately $12.5 million, or 11%, compared to the same period in the prior year. The gross profit for this period was $1.8 million, representing a 2% gross margin, down from $23.1 million and a 21% gross margin in the prior year.
The market has reacted to these announcements by moving the company's shares 2.2% to a price of $6.83. For the full picture, make sure to review Avid Bioservices's 10-Q report.
