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

Ever wondered how a dedicated biologics contract development and manufacturing organization (CDMO) operates and generates revenue? Avid Bioservices (NASDAQ: CDMO), recently acquired in a $1.1 billion all-cash transaction, has been a key player in providing high-quality development and manufacturing services to biotechnology and pharmaceutical companies. But how exactly did they achieve this, and what's next for them now that they are under new ownership? Keep reading to find out more about Avid Bioservices' history, ownership structure, mission, operational framework, and revenue generation strategies.

Avid Bioservices, Inc. (CDMO) History

Avid Bioservices, Inc. Founding Timeline

Year established

The company was initially established in 1981.

Original location

The original location was in San Diego, California.

Founding team members

Initially known as Cytotech, Inc., the company was renamed Peregrine Pharmaceuticals, Inc., and later evolved into Avid Bioservices. The key figures and teams evolved over these transitions.

Initial capital/funding

Details on the initial capital and funding specifically for Cytotech, Inc. are not readily available, but it's understood that Peregrine Pharmaceuticals, Inc. (the predecessor) raised capital through various public and private offerings over the years. For example, in 2017, Peregrine completed a public offering of its common stock, raising gross proceeds of approximately $27.9 million.

Avid Bioservices, Inc. Evolution Milestones

Avid Bioservices, Inc. Transformative Moments

• Strategic Shift to CDMO: The decision to operate as a dedicated CDMO (Contract Development and Manufacturing Organization) was transformative. This strategic pivot allowed the company to leverage its expertise in manufacturing to serve other biopharmaceutical companies.
• Investment in Manufacturing Capacity: Avid's aggressive investment in expanding its manufacturing facilities has been crucial. This expansion has enabled the company to handle larger projects and offer a wider range of services.
• Acquisitions and Facility Expansion:
• Acquiring facilities like the one in Costa Mesa significantly increased Avid's manufacturing footprint and capacity.
• These expansions have been vital in securing large contracts and driving revenue growth.
• Focus on Innovation and Technology: Continuous upgrades and integration of new technologies in its manufacturing processes have allowed Avid to stay competitive and efficient.

To gain more insight into the company's guiding principles, explore Mission Statement, Vision, & Core Values of Avid Bioservices, Inc. (CDMO).

Avid Bioservices, Inc. (CDMO) Ownership Structure

Avid Bioservices, Inc. operates with a mixed ownership structure, featuring a combination of institutional, retail, and insider holdings. Understanding this structure is key to grasping the distribution of influence and control within the company.

Avid Bioservices, Inc. Current Status

Avid Bioservices, Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange. This allows for a broad base of investors to participate in the company's growth and success. For more in-depth insights, you might find this resource valuable: Exploring Avid Bioservices, Inc. (CDMO) Investor Profile: Who’s Buying and Why?

Avid Bioservices, Inc. Ownership Breakdown

The following table provides an overview of the ownership distribution of Avid Bioservices, Inc., highlighting the major types of shareholders and their respective stakes in the company.

Avid Bioservices, Inc. Leadership

The leadership team at Avid Bioservices, Inc. is responsible for setting the strategic direction of the company and overseeing its operations. Key members of the leadership team as of April 2025 include:

• Adrian Horneman: President and CEO
• Daniel K. Hart: Chief Financial Officer
• Sue Behrens: Senior Vice President and Chief Commercial Officer

These individuals, along with other members of the executive team, bring a wealth of experience and expertise to the company, guiding it through a dynamic and competitive market landscape.

Avid Bioservices, Inc. (CDMO) Mission and Values

Avid Bioservices operates with a commitment to biopharmaceutical manufacturing, striving to advance patient well-being through its services. The company's values emphasize quality, innovation, and collaboration in its pursuit of excellence.

Avid Bioservices' Core Purpose

Official mission statement

Avid Bioservices' mission statement is: 'To improve patient lives by providing high quality contract manufacturing services to the biopharmaceutical industry.'

• The mission focuses on enhancing patient lives, highlighting the ultimate goal of their work.
• It emphasizes the provision of high-quality contract manufacturing services, showcasing their expertise.
• The mission targets the biopharmaceutical industry, defining their specific market.

Vision statement

Avid Bioservices' vision is to be a leading provider of contract manufacturing services, recognized for its quality, reliability, and innovation.

• The vision aims for a leading position in the contract manufacturing sector.
• It stresses recognition for quality, reliability, and innovation, setting benchmarks for their services.

Company slogan/tagline

Avid Bioservices' tagline is 'Your Partner in Commercial Success.'

• The tagline emphasizes partnership, positioning Avid as a collaborator in their clients' achievements.
• It highlights commercial success, indicating a focus on helping clients achieve market objectives.

To delve deeper into the mission, vision, and core values of Avid Bioservices, explore: Mission Statement, Vision, & Core Values of Avid Bioservices, Inc. (CDMO).

Avid Bioservices, Inc. (CDMO) How It Works

Avid Bioservices operates as a contract development and manufacturing organization (CDMO), providing a comprehensive suite of services to biotechnology and pharmaceutical companies for the development and manufacturing of biopharmaceuticals.

Avid Bioservices' Product/Service Portfolio

Avid Bioservices' Operational Framework

Avid Bioservices focuses on providing integrated services, beginning with process development and continuing through to cGMP manufacturing and analytical testing. This comprehensive approach ensures a streamlined and efficient pathway for clients bringing their biopharmaceutical products to market.

• Process Development: Avid collaborates with clients to develop and optimize manufacturing processes that are scalable and compliant with regulatory requirements. This includes cell line development, upstream and downstream process optimization, and analytical method development.
• cGMP Manufacturing: The company operates state-of-the-art manufacturing facilities that adhere to current Good Manufacturing Practices (cGMP). These facilities are equipped with single-use bioreactors, which enhance flexibility and reduce the risk of cross-contamination. Manufacturing services include cell culture, purification, and fill/finish operations.
• Analytical Testing: Avid provides a comprehensive suite of analytical testing services to ensure product quality, safety, and efficacy. These services include testing for identity, purity, potency, and safety, as well as stability testing and characterization studies.

To delve deeper into the financial aspects, explore Breaking Down Avid Bioservices, Inc. (CDMO) Financial Health: Key Insights for Investors.

Avid Bioservices' Strategic Advantages

• Integrated Service Offering: Avid provides a full spectrum of services from process development to cGMP manufacturing, reducing the need for clients to manage multiple vendors.
• Advanced Technology: The company's use of single-use bioreactors and other advanced technologies enhances manufacturing flexibility and efficiency.
• Strong Regulatory Compliance: Avid maintains a strong focus on regulatory compliance, ensuring that its manufacturing processes meet the stringent requirements of regulatory agencies such as the FDA and EMA.
• Experienced Team: Avid's team of experienced scientists, engineers, and manufacturing professionals provide clients with the expertise and support needed to successfully develop and manufacture their biopharmaceutical products.

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

Avid Bioservices, Inc. primarily generates revenue by offering contract development and manufacturing services (CDMO) to the biopharmaceutical industry, assisting companies in producing their biologic drugs.

Avid Bioservices, Inc. Revenue Breakdown

The revenue streams are based on the fiscal year 2024 data.

Avid Bioservices, Inc. Business Economics

• Pricing Strategy: Avid Bioservices, Inc. employs a cost-plus pricing model, where they determine the cost of providing their services and add a margin to arrive at the final price.
• Economic Fundamentals:
  • Market Demand: The increasing demand for biologics and the outsourcing of manufacturing by pharmaceutical companies drive Avid Bioservices, Inc.'s revenue.
  • Capacity Utilization: Efficient use of their manufacturing facilities is crucial for maintaining profitability.
  • Regulatory Environment: Compliance with FDA and other regulatory standards is essential for operations and impacts costs.

Avid Bioservices, Inc. Financial Performance

• For the fiscal year 2024, Avid Bioservices, Inc. reported revenue of $166.8 million, representing a 28% increase compared to the previous year. This growth was primarily driven by increased manufacturing demand and process development services.
• Gross margin for fiscal year 2024 was 23%.
• As of fiscal year 2024, Avid Bioservices, Inc. reported a strong backlog of approximately $191 million, providing visibility into future revenue.

Further insights into Avid Bioservices, Inc.'s financial health can be found at: Breaking Down Avid Bioservices, Inc. (CDMO) Financial Health: Key Insights for Investors

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

Avid Bioservices is strategically positioned to leverage its expertise in contract development and manufacturing within the biopharmaceutical sector, with a focus on expanding its service offerings and capacity to meet growing market demands. Exploring Avid Bioservices, Inc. (CDMO) Investor Profile: Who’s Buying and Why?

Competitive Landscape

Opportunities & Challenges

Industry Position

Avid Bioservices holds a notable position within the CDMO industry, particularly recognized for its expertise in biologics manufacturing. Its standing is characterized by:

• Niche Specialization: Focusing on complex molecules and viral vectors allows Avid to cater to specific segments of the biopharmaceutical market.
• Client-Centric Approach: Building strong relationships with clients, ensuring tailored solutions and repeat business.
• Capacity Expansion: Investing in increased manufacturing capabilities to accommodate growing demand and larger projects.

The company's strategic initiatives, such as expanding facilities and service offerings, aim to solidify its position and capture a larger share of the expanding CDMO market.