Avid Bioservices Plans Additional Expansions
Peregrine Pharmaceuticals, the parent company of the contract biologics manufacturer, Avid Biosciences, provided an update of its contract manufacturing business in its recent earnings release.
Avid Bioservices generated $44 million in revenue for fiscal year (FY) 2016 compared to $26.7 million in contract manufacturing revenue in FY 2015. Peregrine expects to continue to have double-digit contract manufacturing revenue growth, and for FY 2017, the company is providing revenue guidance of $50 million to $55 million for Avid, due in part to the revenue backlog of $56 million under committed contracts from existing clients. Peregrine expects this trend, driven by increasing client demand and several ongoing expansion initiatives, to lead to future sustainable profitability for the company in 24 months.
Avid Bioservices recently commissioned a second biomanufacturing facility in Tustin, Californand has completed its initial process validation runs and is ramping up to conduct multiple new process validation runs for three current clients. Process validation is a critical element in preparing a facility to launch commercial manufacturing activities. As such, this milestone moves Peregrine a key step closer to realizing revenue from commercial production from this new manufacturing suite.<.p>
Peregrine is in the process of designing a third manufacturing facility focused on clinical manufacturing. This suite will significantly increase the company’s manufacturing capacity, with the potential to generate up to $30 million in additional revenue annually. The company has secured a 25,000 square foot location in close proximity to its current campus and expects the new clinical suite to be complete and ready for clinical manufacturing activities by the first half of calendar 2017.
Peregrine is also in the process of exploring additional service expansion opportunities.
Source: Peregrine Pharmaceuticals