Avid Bioservices, Inc. (CDMO): History, Ownership, Mission, How It Works & Makes Money

Avid Bioservices, Inc. (CDMO) just went private in a massive deal, but do you really understand how this specialized biologics manufacturer creates value in the complex pharmaceutical supply chain?

The company's acquisition by GHO Capital Partners and Ampersand Capital Partners, valued at approximately $1.1 billion, shows clear institutional confidence in their model, especially as analysts projected fiscal year 2025 revenue to climb to around $164 million, representing a 17% growth rate.

That valuation translates to a roughly 6.3 times multiple on consensus 2025 revenue, so you need to look past the stock ticker to see the underlying engine: a critical, high-demand contract development and manufacturing operation.

Avid Bioservices, Inc. (CDMO) History

The story of Avid Bioservices is less a single founding moment and more a decades-long evolution from a small biotech research firm into a specialized Contract Development and Manufacturing Organization (CDMO). You need to understand this lineage, because the company's deep experience in biologics manufacturing-over 30 years-is its core asset, even with the recent private equity acquisition.

Given Company's Founding Timeline

Year established

The company's origins trace back to 1981, when it was first established as Cytotech, Inc.. The current name, Avid Bioservices, was formally adopted later as part of a strategic shift to focus purely on contract manufacturing.

Original location

The initial founding location for Cytotech, Inc. was in San Diego, California. The company's principal executive offices are now located in Tustin, California.

Founding team members

While the specific initial team of Cytotech, Inc. is not widely documented, the company's trajectory was shaped by the teams that led its predecessor, Peregrine Pharmaceuticals, Inc., and the later management that drove the pure-play CDMO transition. For instance, an entity associated with the later CDMO was founded by Edward Legere. The current leadership team, including CEO Kenneth Bilenberg, appointed in September 2025, brings an average of around 30 years of industry experience, which is a key competitive edge.

Initial capital/funding

Specific initial capital for the 1981 founding is not public, but the predecessor company, Peregrine Pharmaceuticals, Inc., raised significant capital over its history. For example, in 2017, Peregrine completed a public offering that raised gross proceeds of approximately $27.9 million. This capital fueled the operations that would eventually become the dedicated CDMO business.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest transformation for Avid Bioservices wasn't a single event, but the calculated, multi-year shift from a struggling biopharma company-which is a high-risk, high-reward model-to a stable, service-oriented CDMO. That transition, which became a pure-play focus around 2018, gave the company a defensible, revenue-generating business model.

The recent acquisition in early 2025 by GHO Capital Partners and Ampersand Capital Partners for approximately $1.1 billion marks the start of a new, accelerated growth chapter. This move provides the capital and sector-specific expertise to scale operations, which is defintely needed in the tight CDMO market.

Here's the quick math: The company is projecting full fiscal year 2025 revenue guidance between $160 million and $168 million, which suggests a growth rate of about 17% at the midpoint over the prior year. The acquisition is a bet that private capital can supercharge that growth through capacity expansion and new service offerings, like the push into cell and gene therapy.

• Pure-Play CDMO Pivot: Focusing solely on manufacturing provided a more predictable revenue stream and allowed the company to build a reputation for quality and regulatory compliance, which is essential for attracting large pharma clients.
• Capacity Expansion: The company has made substantial investments in its facilities, including completing the expansion of its mammalian cell facilities, which is key to supporting its record backlog of approximately $220 million as of October 31, 2024.
• New Leadership and Vision: The appointment of a new CEO and a Chief Technology and Transformation Officer in late 2025 signals a commitment to modernizing digital processes, embracing automation, and scaling operations under the new private ownership.

To be fair, the company reported a net loss of $22.9 million for the first six months of fiscal year 2025, demonstrating that growth investments-like increased SG&A expenses-are still outpacing revenue gains, but the growing backlog suggests future profitability is the target. You can read more about the strategic direction in our Mission Statement, Vision, & Core Values of Avid Bioservices, Inc. (CDMO).

Avid Bioservices, Inc. (CDMO) Ownership Structure

Avid Bioservices, Inc.'s ownership structure underwent a fundamental shift in early 2025, transitioning from a publicly traded company to a private entity controlled by two major private equity firms. This means the company is no longer governed by the interests of thousands of retail and institutional shareholders, but by the strategic mandates of its new private owners.

You need to understand this change because it moves the focus from quarterly earnings reports to long-term growth and capacity expansion, which is typical for a private equity-backed Contract Development and Manufacturing Organization (CDMO). You can read more about the sector's dynamics here: Exploring Avid Bioservices, Inc. (CDMO) Investor Profile: Who's Buying and Why?

Given Company's Current Status

The company is no longer public. Avid Bioservices was acquired by funds managed by GHO Capital Partners and Ampersand Capital Partners in an all-cash deal valued at approximately $1.1 billion. This merger was completed in the first quarter of 2025, and the common stock was subsequently delisted from the Nasdaq Stock Market.

This public-to-private transaction, which valued the company at a 6.3x multiple to consensus FY2025E revenue, gives the new owners full control to accelerate growth without the pressure of public markets. The company's new private status allows for significant, long-term capital investment to expand its biologics manufacturing capacity, which is a key near-term opportunity in the CDMO space. For context, the company's FY2025 revenue guidance was between $160 million and $168 million.

Given Company's Ownership Breakdown

As of November 2025, the company is 100% owned by the private equity funds that acquired it. This joint ownership structure means strategic decisions are driven by the combined expertise and capital of both firms, with a focus on maximizing the enterprise value for a future exit.

Given Company's Leadership

The leadership team is a mix of long-time operational experts and new, trend-aware executives brought in to steer the company through its private equity-backed growth phase. Kenneth Bilenberg was appointed President and Chief Executive Officer in September 2025, succeeding Nick Green.

Bilenberg's background, including senior roles at Fujifilm Biotechnologies and Novo Nordisk, signals a clear focus on scaling large-volume biologics operations and reinforcing technical excellence. Honestly, this is a smart move for a CDMO looking to expand capacity and attract larger biopharma clients.

The core executive team driving the day-to-day operations and strategic execution includes:

• Kenneth Bilenberg: President & Chief Executive Officer (Appointed September 2025).
• Daniel Hart: Chief Financial Officer.
• Richard Richieri: Chief Operations Officer.
• Matthew Kwietniak: Chief Commercial Officer.
• Dave Stewart: Chief Technology & Transformation Officer (Appointed November 10, 2025).

The addition of a Chief Technology and Transformation Officer in November 2025, just months after the acquisition, defintely shows the new owners are prioritizing digital modernization and automation to boost efficiency and capacity utilization.

Avid Bioservices, Inc. (CDMO) Mission and Values

Avid Bioservices, Inc.'s core purpose extends beyond quarterly earnings; it centers on accelerating life-changing therapies by providing specialized, high-quality contract development and manufacturing organization (CDMO) services. This patient-first mindset is the cultural DNA that guides their strategic decisions, like managing a growing backlog of Mission Statement, Vision, & Core Values of Avid Bioservices, Inc. (CDMO).

You're looking for the 'why' behind the numbers, and honestly, it's about getting complex drugs to market faster. For the first six months of fiscal year 2025, the company reported a net loss of $22.9 million, which shows the cost of their aggressive capacity expansion and commitment to quality, even as revenue hit $73.7 million for that same period.

Avid Bioservices' Core Purpose

The company's purpose is deeply rooted in improving patient outcomes by being the trusted manufacturing partner for biopharmaceutical innovators. They focus on the complex, high-stakes work of producing biologics (drugs derived from living organisms), which demands rigorous quality control and technical expertise. That's a serious commitment.

Official mission statement

Avid Bioservices' mission is to help biopharmaceutical companies bring complex and innovative therapies to market by providing specialized process development and current Good Manufacturing Practice (cGMP) manufacturing services for clinical and commercial supply.

• Enable clients to deliver innovative treatments to patients.
• Provide end-to-end biologics development and manufacturing services.
• Ensure high-quality, regulatory-compliant production.

The company is defintely focused on quality, maintaining a flawless quality track record for over a decade.

Vision statement

The vision is to be the leader in specialized process development and cGMP manufacturing of biopharmaceuticals to the global biopharmaceutical companies. This isn't just about market share; it's about redefining the client experience in a demanding sector.

• Transform the CDMO experience with unrivaled expertise.
• Offer a personalized process for every client.
• Maintain world-class facilities and exceptional quality standards.

Their strategic expansion, including a new cell and gene therapy manufacturing facility, maps directly to this vision, supporting the fiscal year 2025 revenue guidance of $160 million to $168 million.

Avid Bioservices' Core Values

The company's culture is built on five key principles that drive daily operations and client interactions. These values are the non-negotiables in their business model, especially as they manage a substantial backlog of $220 million as of October 31, 2024.

• Integrity: Upholding transparency and accountability.
• Adaptability: Responding to diverse client needs.
• Innovation: Continuously improving processes and technology.
• Teamwork: Collaborative internal and external partnerships.
• Passion: Dedication to improving patients' lives.

Avid Bioservices slogan/tagline

Avid Bioservices uses a concise tagline that aims to capture the full value proposition they offer to their biopharmaceutical clients.

• Discover the Avid effect.™

Avid Bioservices, Inc. (CDMO) How It Works

Avid Bioservices, Inc. operates as a dedicated biologics Contract Development and Manufacturing Organization (CDMO), meaning it acts as an outsourced partner for biotech and pharmaceutical companies to develop and produce their complex, large-molecule drug substances like monoclonal antibodies.

The company essentially takes a client's drug candidate-often a protein-based therapeutic-and provides the specialized science, facilities, and regulatory compliance (cGMP) needed to scale it up from a lab concept to a commercial-ready product, generating revenue through service contracts and manufacturing fees.

Avid Bioservices' Product/Service Portfolio

Avid Bioservices' Operational Framework

The company's operations are centered in its state-of-the-art facilities in Tustin, California, which house the highly specialized equipment required for mammalian cell culture-the primary method for producing complex biologics. This is a capital-intensive business, so capacity utilization is defintely a key metric.

• Value Creation Process: It starts with a client contract, which builds the company's backlog-a record-high of $220 million as of October 31, 2024. The process moves from early-stage process development, where the manufacturing recipe is optimized, to high-quality cGMP (current Good Manufacturing Practices) clinical manufacturing, and finally to large-scale commercial supply.
• Capacity and Scale: Following significant capital investments, the total revenue-generating capacity stands at approximately $400 million annually. However, as of late 2024, utilization was around 35% to 36%, meaning there's substantial room to grow revenue without major new capital expenditure.
• Revenue Generation: Avid Bioservices makes money through service fees charged for development work and manufacturing campaigns. For the first six months of fiscal year 2025 (ending October 31, 2024), total revenues were $73.7 million, driven by increases in both manufacturing and process development services. Management expects full fiscal year 2025 revenue to be between $160 million and $168 million.

For a deeper dive into the numbers, you should check out Breaking Down Avid Bioservices, Inc. (CDMO) Financial Health: Key Insights for Investors.

Avid Bioservices' Strategic Advantages

In the competitive CDMO space, Avid Bioservices wins business and maintains its position by leveraging a few critical advantages that reduce risk and accelerate time-to-market for its clients.

• Specialized Focus and Expertise: The company is a pure-play biologics CDMO focused on mammalian cell culture, which is a high-demand, high-complexity niche. This specialization allows it to offer a deep level of technical and regulatory expertise that is hard for generalists to match.
• Quality and Regulatory Track Record: It boasts a flawless quality track record spanning over 10 years, which is a huge differentiator. In the highly regulated biopharma world, a clean regulatory history is a mission-critical asset that clients will pay a premium for.
• Client Stickiness (High Barriers to Exit): Once a pharmaceutical company contracts a CDMO for a drug, the cost, time, and regulatory burden of switching manufacturers are extremely high. This creates an economic moat, leading to long-term, stable, and predictable cash flows once a program reaches commercial scale.
• Private Equity Backing: The acquisition by private equity firms GHO Capital Partners and Ampersand Capital Partners, which closed in Q1 2025, provides significant financial backing and deep industry expertise, positioning the company for its next phase of rapid growth and expanded offerings.

Avid Bioservices, Inc. (CDMO) How It Makes Money

Avid Bioservices, Inc. generates revenue by operating as a dedicated biologics Contract Development and Manufacturing Organization (CDMO), essentially serving as the outsourced factory and lab for biotechnology and pharmaceutical companies.

The company makes money by charging clients for two core services: first, the specialized work of developing and optimizing the process to create a drug substance (Process Development), and second, the large-scale, regulatory-compliant production of that drug substance (Manufacturing) for clinical trials and commercial sale.

Avid Bioservices' Revenue Breakdown

As a pure-play biologics CDMO, Avid Bioservices' financial engine is split between high-margin, early-stage development services and high-volume, late-stage manufacturing. The company's full-year fiscal 2025 revenue is projected to be between $160 million and $168 million. Here is the estimated breakdown based on the company's operational focus and recent growth drivers in the first half of fiscal year 2025 (H1 FY2025):

Business Economics

The core economics of a CDMO like Avid Bioservices revolve around capacity utilization and long-term contracts. You're not selling a product; you're selling time, expertise, and highly regulated facility space. The goal is to fill the company's recently expanded capacity-which includes new mammalian cell and cell and gene therapy (CGT) facilities-to drive down the cost per batch and boost margins.

• Backlog Stability: The company entered the second half of FY2025 with a strong backlog of approximately $220 million as of October 31, 2024. This backlog provides revenue visibility, with a significant amount expected to be recognized over the next five fiscal quarters.
• Pricing Strategy: Contracts are typically structured as fixed-fee agreements for a defined scope of work, such as a manufacturing run or a process development campaign. This transfers some project risk to the client but locks in revenue for Avid Bioservices.
• Capacity Leverage: Avid Bioservices has invested heavily in capital expenditures (CapEx) to expand its capacity to an estimated $400 million in annual revenue-generating potential. That expansion is a fixed cost drag right now, but it's the key to future profitability once utilization rates climb.
• Customer Concentration: A major economic risk is customer concentration. For the fiscal year ended April 30, 2024, the top three customers accounted for about 55% of total revenue. Losing even one of those anchor clients would defintely hit the top line hard.

Avid Bioservices' Financial Performance

The financial results for the first half of fiscal year 2025 (H1 FY2025, ended October 31, 2024) show a company in a growth-through-investment phase, with rising revenues but persistent profitability challenges due to high operating costs from the recent capacity expansions.

• Revenue Growth: H1 FY2025 revenue was $73.7 million, an increase of 17% compared to the same period in the prior year. Q2 FY2025 revenue alone was $33.5 million, up 32% year-over-year.
• Gross Margin Pressure: Despite revenue growth, the company reported a gross profit of only $3.7 million for H1 FY2025. The Q2 gross loss was $2.0 million, indicating that the cost of goods sold, including depreciation from the new facilities, is still outpacing revenue recognition.
• Net Loss: The net loss for the first six months of fiscal 2025 widened to $22.9 million, compared to a net loss of $11.6 million in the prior year period. Here's the quick math: you're seeing the effect of increased Sales, General, and Administrative (SG&A) expenses, which surged 46% in H1 FY2025, plus higher depreciation costs.
• Acquisition Value: The pending acquisition by private equity firms GHO Capital Partners and Ampersand Capital Partners values the company at approximately $1.1 billion, representing a multiple of about 6.3x the consensus FY2025 estimated revenue. This valuation suggests the buyers see significant future potential in the newly expanded capacity and the long-term CDMO market, even with the current unprofitability.

For a deeper dive into the valuation and risk profile, check out Breaking Down Avid Bioservices, Inc. (CDMO) Financial Health: Key Insights for Investors.

Avid Bioservices, Inc. (CDMO) Market Position & Future Outlook

Avid Bioservices, Inc. is positioned as a specialized, high-quality player in the rapidly expanding biologics Contract Development and Manufacturing Organization (CDMO) market, focusing on mammalian cell culture. The company's immediate future is defined by its strategic acquisition by private equity firms GHO Capital Partners and Ampersand Capital Partners for approximately $1.1 billion, a transaction expected to close in the first quarter of 2025, which should provide capital for accelerated growth and capacity utilization. [cite: 4 from step 1, 11 from step 1, 24 from step 1]

You can't ignore the fact that the company's fiscal year 2025 revenue guidance of $160 million to $168 million, a projected 17% growth at the midpoint, demonstrates solid demand despite a challenging profitability profile, including a net loss of $17.4 million in Q2 FY2025. [cite: 1 from step 1, 4 from step 1, 11 from step 1]

Competitive Landscape

The biologics CDMO market is highly fragmented, but dominated by a few global giants. Avid Bioservices operates as a niche, specialized provider, contrasting sharply with the full-service scale of market leaders. To give you some perspective, the entire biologics CDMO market size is estimated to be around $25.32 billion in 2025. [cite: 2 from step 2]

Here's the quick math: Avid's projected 2025 revenue of $\sim\$164 million puts its market share at roughly 0.65%, making it a small, focused competitor. This small share is actually a strength, because it means they are highly specialized and focused, not trying to be everything to everyone. The table below shows the competitive scale.

Opportunities & Challenges

The company is at a critical juncture, transitioning to private ownership while navigating significant industry tailwinds and operational headwinds. The key is how quickly they can convert their record $220 million backlog into profitable revenue. [cite: 4 from step 1]

Industry Position

Avid Bioservices, Inc. holds a specialized position, focusing on the core mammalian cell culture segment, which represented 62.32% of the total biologics CDMO market size in 2024. [cite: 2 from step 2] They are not a generalist. Their value proposition centers on deep expertise and a track record of quality, which is critical for late-stage and commercial programs.

• Mammalian Specialization: The company's facilities in Orange County, California, are dedicated to mammalian protein manufacturing, a key technology for complex drugs like monoclonal antibodies. [cite: 23 from step 1]
• Strategic Expansion: The addition of viral vector development and manufacturing services for the Cell and Gene Therapy (CGT) market diversifies their offerings beyond monoclonal antibodies, positioning them in an area expected to drive significant market growth. [cite: 1 from step 1, 19 from step 1]
• New Leadership Focus: The appointment of a Chief Technology and Transformation Officer in November 2025 signals a clear strategic focus on digital modernization and automation to boost efficiency and maintain a competitive edge on cost and speed. [cite: 8 from step 1, 20 from step 1]

The private ownership transition, expected to finalize in early 2025, removes the pressure of quarterly public reporting, allowing management to focus on filling the remaining capacity and driving operational efficiencies to expand their core EBITDA margin, which was 30.2% for the CDMO business of a major competitor in H1 2025. This is the goal. For a deeper dive into the ownership structure and investor motivations, check out Exploring Avid Bioservices, Inc. (CDMO) Investor Profile: Who's Buying and Why?