CDMO - Earnings call transcript Q3 2024

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Operator

Good day, ladies and gentlemen, and welcome to the Avid Bioservices Third Quarter Fiscal 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call may be recorded.

I would now like to hand the conference over to Tim Brons of Avid's Investor Relations Group. Please go ahead.

Tim Brons

Thank you. you us. thank and afternoon, for joining Good On CEO; and Dan we have Matt President and Nick Green, Hart, Avid's Commercial today's Chief call, Kwietniak, Officer. Chief Financial Officer; be updates on activities Bioservices will Today, ended of the results corporate an January manufacturing including and XX, and Avid XXXX. we business, contract providing for development quarter financial overview questions. our remarks, After prepared we will welcome your

risks within call contain to the to Before that company, Securities and comments of and statements matters. conference I'd statement certain company's update this from assumptions, number any will the of XXXX, undertakes review results like filings Act caution involves today. with revise uncertainties. these meaning the encourage which Private today begin, I and current the all or XX, we during April Reform could made statements, the these other the you differ no of Securities the and forward-looking made Exchange Actual a company obligation concerning belief Commission Litigation of concerning XXXX to

press release includes non-GAAP earnings of discussion information. certain a Our

earnings release, You our on avidbio.com. press website find including reconciliations relevant our can corporate non-GAAP at

that, over Green, President to CEO. the turn Avid's I Nick will and With call

Nicholas Green

everyone to today Thank and thank you, Tim, you via webcast. participating

and to X We quarter we fiscal XXXX. X told the fiscal our increase compared anticipate Last report we quarter, to XXXX. an with quarter are we quarter third of of excited to third quarter, revenues expected in investors quarter XX% strong of second And for results the quarter upward. during ramp for of a recorded anticipated, as X. the that XXXX more revenues And than as continue we

within our feel pre-release, program. customers look to to on our guidance X the and year XXXX we still and of The our continues as for with XXXX we fiscal last be continue forward completed full our through track to flow benefit quarter low with a with watermark for previously financials. remain Consistent range. pipeline expansion financial disclosed fiscal begins was revenue Avid, to quarter, we our environment strengthen, optimism we from for later-stage recently Consistent

signed strong, period multiple again existing The once the both with new in customers. quite breaking the were for bookings high a we new million project quarter, resulting for and $XXX first backlog, the the During agreements level time. new record

a are factors these signings with view early-stage We fiscal increasing We financing representing as of during other the second in with biotechs. X. seen see projects of from quarter to of also encouraged an for signs quarter-on-quarter consecutive quarter proportion number an the increase improving X, low along this associated environment

in our cut offering therapy the step In place. are happy substantially the Completing offerings the operations, complete on increased capacity, cell with grand or facility we C&GT and construction represented customers organization. now and stronger a in were engaging gene of service with delighted company's opening X-year that final transforming our our CGT, expansion of program our facility into new a dramatically ribbon be to and Avid enhanced revenue-generating the to and has

with strengthening completed see flow as from facilities. to associated leverage and and expect operating expansion, Importantly, newly cash benefit our margins cease the we of CapEx the we we

required of of necessary the it quarters. This notes our to prior to filing certain to in our the XXXX delay prior refinance the X us was a quarter communicated, previously convertible closing caused and restate As quarter. results

operations created our following of our business fiscal which additional the an take from period maturity instrument, conditions. as improving on advantage our of provide stability overview results. the XXXX and have on Matt we us and details capacity quarter market I third will financial development the direct our filling XXXX, debt newly efforts extended of to and With to new we our provides

for And to that, turn I'll over Dan. the call

Daniel Hart

Nick. you, Thank

overview, financial issued brief in the additional to addition April Form in on in press on included our on XX financial I'll the the which with SEC. April provide our are details XX-Q, release results today, call also on begin, filed XX and our I Before was

I I upon the mentioned in begin, touch that would to acceleration like his opening note Nick quickly Before remarks.

default a our removal to senior a was technical XXXX. there stemming due notes First, relating the to from acceleration led requirement that of legend convertible

used As due closed amount million principal senior approximately a of on the the net conducted proceeds of in result our from and convertible March notes. offering March, million offering to of X, the we XXXX notes and X% aggregate note acceleration of an XXXX. $XXX We repurchase repay $XXX

with periods recent XXXX liabilities financial the we year incremental the reclassify ended undertook to As financial SEC, management's our based our our no for The There current to XX, XX-K notes. October to April liabilities filings Audit XXXX, in balance a on and adjustments other certain from long-term the would each XX, restatement XXXX, associated account the the for of to an XXXX. spanning require determined periods. XX, to XXXX the our on statements Committee evaluation recent company's statement material of for for that recommendation, disclosed with notes were restated including October sheet period interest our

to XXXX. I'll period. provide an in quarter of the compared XX% an were X Revenues million 'XX revenues $XX.X for prior ended and from now operations representing months recorded of of the January overview for results fiscal the financial our $XX as same quarter decrease million, XX, third year

same million, decrease $XXX.X X first XX% fiscal approximately to revenues $XX.X compared a months the the in of For year of period. million were prior 'XX,

to prior manufacturing development process fewer revenues decreases quarter were to a and periods same January the attributed ended primarily customers. and reduction The from early-stage months in runs for in and services third year compared X XXXX, XX, the

a variable been contract of the Additionally, were impacted resolved. for in reduction have revenues a months, first X also by during under estimated where uncertainties revenue changes consideration

'XX. quarter compared Gross profit profit 'XX X% to profit of the was million Gross fiscal XX% third first or the gross months in fiscal fiscal margin, $XX.X of of 'XX. compared or for $X.X the $X.X margin or gross was quarter for margin, a million XX% gross fiscal third gross or million period same the 'XX margin of for X X% gross to $X.X million during

X insolvency The decreases margin of a periods were smaller XXXX our for Gross runs, related process customers year for gross project compared ended and in the months in primarily services and related both January prior technical early-stage January and customers company's the costs fewer also in one of the a to revenues XX, X resolved. impacted under XX, uncertainties reduction product been from driven to months an the delay variable XXXX, manufacturing terminated the to in pending development a ability X process margin a the have consideration of changes the were by for reduction company's where during capacity ended same expansions a estimated increase a capabilities. A and contract revenue in implementation of by change. recognize of to customer the

fees. the the SG&A $XX.X compared 'XX XXXX, SG&A first the prior compared and quarter for to approximately quarter for compensation decreases same a XX% period. X decreases were third in recorded XX, of prior compared of year X to decrease SG&A periods The ended to $XX.X decrease were the million fiscal January fiscal primarily and recorded million million, expenses for third benefit-related and consulting 'XX. X% a fiscal in the due of of $X.X $X.X million, year both expenses 'XX of expenses were same months X months the in to in

first of quarter the Operating of $X.X third 'XX income operating the income fiscal operating ended loss for million for offset to X quarter the January months decrease in fiscal profit, in million, the months of XX, XXXX, operating X prior periods million, decrease third months driven of the a and of $XX.X The by recorded Operating $X.X million was decreases for for by gross SG&A. 'XX. reduced compared $X the in partially of same year 'XX the fiscal loss X compared a X was to were first income 'XX. compared to fiscal

$X.XX loss quarter million to per of million company's basic fiscal of diluted the and fiscal quarter $X and $X.X third the was diluted 'XX. or net 'XX, for of $X loss compared the During net a share third share, or basic per

the For the compared same $X.XX net a $X.X fiscal diluted as to million per share recorded period. and basic the share, 'XX, million or during $XX.X prior loss approximately of of first X diluted or income months company net and $X.XX of year basic per

Our cash $XX.X XXXX. on cash to million, January equivalents and XX, were compared XXXX, XX, million April $XX.X on

an I This the concludes update on call to my now quarter. during for Matt activities commercial the financial overview. over will turn

Matthew Kwietniak

Thanks, Dan.

the company. backlog which an our the by increase customers. project new of the backlog, quarter as encouraged a XX% represents projects quarter's includes expansions of the with spanning of quarter, during quarter include fiscal the third customer range The the another bookings for of from of projects period, broad well million bookings million, we During end capabilities, $XXX as $XX period, XXXX. the to the third existing a company's resulting strengthening for new were with high million compared at $XXX record we ended agreements of The the as of

highlight It important of to is the bookings. composition new these

comprised these second that earlier towards take bookings projects programs. execute. quarters, we reported Today, earlier first decline backlog notable extend the later-stage And our were as projects pipeline X longer we in recognition our year year. new primarily As in a a during Avid's generally with to programs, and the stage expect remains weighted which for result, beyond will later-stage of of

but our larger significantly of including they only with important growing also in projects terms commercial gain was the will expansion they certain regulatory term that of These programs regulatory the key believe be advantages, are type stage strategy. project supply of values, should a not approvals. and the probability approval. ramping of We such longer recurring exactly demand filling commercial Later as associated revenues programs higher capacity, a with result new have initiating and its in later-stage associated the and to the approval contributors Avid targeting

which third postponed own and the provide capacity that, of we industry-wide by of improvement pipeline, challenging during programs, were in financing set balance of environment, increase bookings. been in Having marked our value an pleased to mix broader pipeline incremental calendar generation. revenue for usage the to quarter, prevailed an much Early-stage many shorter-term have project advantages, their XXXX, due the said which also of to including our early-stage see

stage hope the seeing weighted improvement by now an are sector financing we customers remains a about whole. of towards environment their encouraged programs later are pipeline biotech with While levels are early-stage work, in engagement the the our we observing for we as and

progress the During each we our into continued programs, successfully to revenue. translating of quarter, backlog with make third active

the in in pipeline customers Looking and the engagement aggressively brand through programs these a industry. pursue with and market, we to and healthy ahead, elevating of Avid's continue see recognition prospective consistent existing opportunity we both

during have We progress very remain an on stronger fourth even pleased quarter. are track with our to period the and

This turn concludes my to overview operations now back during other and of for period. the commercial call will achievements the update I activities. on Nick over

Nicholas Green

Matt. Thanks,

We keeping momentum is and and to the we report achieved as during third are an bookings half XXXX. compared the pleased X to This ramp projected quarter, revenues of the quarter bookings increase in stronger that the second that year. significantly we revenue for in with

be As will stronger, one the revenues history. we in the look ahead, XXXX of revenues, half our we best believe making second the company's quarter fourth even

market now to just With operations, and our pharma the breadth service capabilities offerings. our have address can opening includes we positioned X large better of larger cell customers. located We upgraded facility and therapy the needs are mammalian only Avid we a of miles our CGT expanded products, from the but not that of gene

expanded in already the we number of of Of PPQ our note, PPQ now margins our until capacity the successfully first And maintenance later-stage capabilities been paying current of new has establishing shutdown, the line, we dividends strengthen clients known near years expect Line have larger delayed the our our completed. after that are successfully has discussed. while a the X, Myford in coming These quarters. new campaigns also South, will a growth for as slated is and in and This QX the for campaign, mammalian ahead. capabilities we new margins, investment baseline term, impacted utilization our attracting growing

its customers. to commercial during in who are record In an our closing, can many regulatory industry-leading than its peer achievements. CDMOs delivering history, more track I like would XXX achieving claim successes to acknowledge a There such batches Avid's few space and XX-year

the over significantly elevate future and organization has However, into with it To past. to been goal end, the size our capabilities the expanded opportunity. years the the have X to that we worked beyond past Avid bring of diligently

strategic our see we come delighted are today, And plan to to fruition.

service a pharma Over time CDMO in complete. past. Today, steadfast businesses the now larger the company poised to markets, larger, is the past at world-class to X has than organization more a market the capable, that commitment years, segment the remained company's its including transformation of in any multiple

programs late-stage making in The are progress. great our pipeline

the expansion with of commercial pipeline approval expanded One plan. late-stage the strength high-value approval the the FDA value objectives achieved to positioned state-of-the-art combine are well process. facilities When others these we of the programs realize continue technical believe capabilities and advance and has and our through strategic the of our our of team, to we we already

industry. As profitability, establishing attract and and well way as we expect supplier believe to and the additional achieve to Avid to capacity growth choice sustainable we fill our we continue a customers, for are of on consistent

call And Operator? operator remarks for my to the concludes This the open we can questions. now for prepared today.

Operator

first come line from Our the Stephens. Jacob will [Operator of Instructions] from question Johnson

Jacob Johnson

most which, positive a I'd general. the I other then of are curious, just curious markets seeing present that after end some I largely end happened backdrop, about just concluded are right Catalent events, markets deal. funding on you notably I'm reported? opportunities the think, BIOSECURE Nick, guess commentary of the themselves around I after guess in and those now, the Novo additional you so the the quarter you unique going lot be and in dynamics

Nicholas Green

one. beginning exactly conversation at coming Jacob. We the don't of an understand the Yes, It's opportunity always is interesting from. where necessarily the

of tailwinds potential our in guess, -- or terms tailwinds I of terms to, mentioned sector. you So in

whether or client to comes BIOSECURE a always us something we a do new it's with with Catalent. to -- not obvious opportunity, with it's it's that to So whether do

year. seems that those some correlation not I beginning be of turnaround opportunities and seeing at materialize the at we're those of But number cycle sell. stage we the think widgets there between discussions the early to is that say Obviously, the this fair that it's to It's of of instantaneous. events

think aside we the couple November And discussion of So seen from putting positive. statements of it's a to look we ongoing number the ago, some maybe with optimism. I converting an and fair say there's to the the I it's generally we've that -- see, from onwards inflation saw those work those. Obviously, regarding there's weeks out data that been forward marketplace think of most with dynamics But together that we has revenues.

Jacob Johnson

maybe for reiterated Got your FY it. you And guidance. then guys 'XX Dan,

Matt and a both heard about Nick I strong XQ. think I talk

have given any the on Just the us for where that the you to that? gives relative models, in give we how quarter kind to the is have guidance if are out to specific you maybe do detail those of playing opportunity us of more who want you quarter

Nicholas Green

to range that one. did, take done the I'll Jacob, that that's what we because of I we the our mean, we've in prerelease Yes. left frank. guidance be

we've pre-released. with So we wanted be what consistent to

where I kind I were guys with think what have restating think, been that, we just, again, comfortable there, out we're and restating with you saying. consensus we're of and

necessarily than any out we think where And come we We to looks differently So expectations. in see I quarter. still range. were with treat in it last line there expect that consensus the I wouldn't that

hopefully, can those, stage. looking but certainly where those meet So beat at we or this that's we're

Operator

line Our next from RBC Capital the of question will . from Sean Markets. come Dodge

Sean Dodge

on of kind following just and Jacob's there bookings. more questioning specifically line the of Maybe

you about this quarter. on maybe day We're some business can recently comes that will to I signed here new of how quarter? of X million bookings, us $XX from it you trended had how to wrapping where land some away have give this You think direction those last or sense when quarter. guess

Nicholas Green

know revenues But highlighted upon think it's call. will nice consensus I was we kind on of which between bookings. uplift $XX optimistic meeting as of But quarter uplift revenues, X can't be was grow. X, terms terms we're in the X to highlight a backlog. go on It's again, that I'll Sean. we've X with Yes. we think book X, quarter I quarter to we -- and quarter X forward, in of very of a with in good market The late. comments the be and size it a pleased million I we the just always a I quarter those the not timings I suggest about as on the would continuing that I And record ride. think smooth go other, were orders also quarter that And would that. my go being

I know quarter we bookings to revenues, And end about again, the way expect growing optimistic I see but a X. this to I'm some X can't on So that, of but close see and forward. quarter we're as continuing ups to downs comment go the I call. is and also very along

be, awkward have So little may quarter. the respect it I a as still to

Sean Dodge

-- of calling if there million, notable the cancellations, of shifted any QX result we the comparability there? And the out Were anything think think or is are or one? Were current anything there meaningful that trend I worth Okay. quarter about into out $XX slipped there there about or affect, any wins would that there? would

Nicholas Green

Yes. looking back I mean, to now the January. we're end again, of

So November. at the I considering with facing we the was of quite were pleased quarter where in that beginning

haven't in So opportunities that seen. Obviously, the higher. was I we But early other saw that always itself. thing I number good take think we'll increasing, thought was which phase we

the we going slump So again We as X. increase increase this it that just sort year after. was We precursor last or the were in of back slightly X which an have X, quarter of X. saw we had had quarter in to quarter time an to in kind

this And conversations anything. in that I the I've I from delays bringing pushing the more a or positive major about conversations marketplace or I've was forward or positive. conserving accelerating, is the think losses have programs had cash. No conversations, or of to then I feel alluded prior off or cancellations So in perspective. tone my

again, So programs due it's gestation the reiterate environment, but this significant regulatory the period tone industry it's and of think. nice to I'd the see projects I And that to is have quite to those just decisions not the in good rapid most conversations. a change, and making

Sean Dodge

how of then of stuff signed backlog Okay. also last help about the flow early to kind later-stage take of that, beginning about phase And kind signings If so going forward? burn backlog of said you -- you or thinking through through. conversion earlier progressing, take couple all some we that should of walk you'd talked be you the us we if more can quarters, we

Nicholas Green

Yes.

So what I XXX% of took don't your before, -- that so and got of months phase, once if revenue the in now revenues is sort because majority it effectively -- to Kind there's this a it of I then think into I've months is. of later phase, mentioned then elongating, of XX convert, late to resistance XX your you've you got or

So it, to I into see offset think as which materially unless thing. you by be earlier come it's a wouldn't phase, business bad start phase late

the potentially see and where is and staying better. worst to shortening it getting expect You'd

So I think, fiscal we to next as into look materializing be hopefully year, that's we another our positive, would see. would like

Operator

next comes Capital from Group. from line the Our of Craig-Hallum Matt Hewitt question

Matthew Hewitt

and more dig to the Maybe little in on BIOSECURE a opportunity. bit Catalent

specific not to of provider? more past last companies over for X maybe of a week looking asking And change but you couple come about large us companies having you out as that hearing where through more sense of sit had have You've are seen numbers, changing are But process. so a use kind quarter any walk or maybe and the today, they're new now. talking in urgency possibly kind the conversations of we those conversations the from or pharma here

Nicholas Green

the Matt, a to one considered do I at be somebody maybe at an Yes. place I can somebody varied been who's looking that problem switch to you look think, -- I supplier? It facing as want that there. order mean, mean very of, I another. may have to from

to line, in terms of So already they that be may committed on time meeting I guess, clinical. depending their

So be that scenario. could one

about big spent you've there, we've resistors and a in amount being already into facility, you're significant money always transferring sticky. already There to this talked quite another industry moving. are tech of If

I that you're some start if to at ultimately, is making But of one future, decisions. going guess, those the you equally, then have looking you're to not supply, have concerned a

interesting So think dilemma. I it's an

or be think you're -- at we're going go switching first I to to to. who if comment is or to is going the point, the going first look moving

do So we've we being quality that good have that established. that about feel the commercial record experience we commercial and track

of list And so hopefully, we're on that. the call

It's then months can and making facility at issue. then through match question. that the going of talking executing. it's up in take be statement obviously detailed capabilities your going programming looking review sure a to with those And several terms through fit and those And work

seen signed the you the something think that do I fastest about written I've into convert a extraordinarily actually walk could weeks, and and to X is somebody it and order unusual. is ever up door say,

to than talking probably And for longer you're would more is X they think I phase. go programs, on months bigger normal that. X a more

faster, Again, can X motivated to and take MSAs seen to X moving depending they lot so quicker being, have on seen a and be negotiate, I've that the months how recently. people severe than I those situation feel things

let's It's not to Coming my X to not I'll But result always as So a certainly just back again, may suspicions. go factors. our that's motivation X first either us conversations or a serious get as around have into of some to comment. whether to clear those programs. I there's Avid, of that feel very to -- we

Matthew Hewitt

shifting little maybe a here gears Got then it. And bit.

that discussions Anything and our the would commercial helpful. be go, those cell ribbon facility? are those lines and Best therapy opportunities pipeline on to when along could see cut running guess the With of run out there? is going? up looking facility ready gene first of or we how How

Nicholas Green

Yes.

I GMP run, be foreseeable going one. don't to be. clinical making would commercial happy for know But leave material would that first I that future. I'm So when the

has the again, the the in market similar short the mammalian push. we're product I -- I opening side, term to that say, think it's of part But a new aside seeing of long commercial which, is one is positive bit I facility as since in what a November, indicator from been a very and a expecting mentioned.

and fair would it's behind X be the to A and my say sector or it. half probably a similar at a rate, think moving or therapy I behind, gene quarter quarter lagging estimation. is it albeit cell quarter but behind that

more we're interaction, more being the talking phase. requested, they proposals and better interaction, seeing So how about programs would

we So whole the optimism the feeling we're business. across

I think nonetheless, it's therapy, and in lagging cell the but gene improving.

gone a felt we at the in of the the X the business, disappointed quarter low like in were from end whole end So situation quarter where be in and the the year-to-date should point. X

quarter X, at -- think think it I holding seeing into statement. I this moment, cautiously optimistic fair say we're of being holding quarter was as was X, of in regarding sort the it be use and But as is the moment. it at optimistic I see word that not if an what unreasonable we to went we continues, would sort I to

it continue. may long So

Operator

line the from Blair. Max Smock come will William from question next of our And

Max Smock

mammalian ask on drug scale I wanted space. section to one the in overcapacity small

smaller last months Fuji so bioreactors. from or the Over move seen and divest some both there, away Lonza here, assets scale we've

where that Sartorius or heard say overcapacity demand also last You currently. weak is week this really there's

concerns some are in the overcapacity in So backdrop, space? that with you the space we've you from heard those players of with impact from do And other play? what about the [indiscernible] think you how of insulates that million concerned

Nicholas Green

It's really difficult seeing. comment on for me they're to what

overcapacity, saying. would I I've as been contradicts of kind again, that what bit say, little of just So I a if -- seeing they're

for Avid's bellwether for and to is capabilities. services demand good Avid not industry. a seeing minute we're that a whole So for the suggest I'm going

situation. -- we're for not but seeing we -- big market, not we representation that perfect aren't we're could we that So certainly a that overcapacity the an we suggest

people are. So on difficult for me to who comment

Max Smock

that commentary, just Nick. another appreciate I Maybe way here. the question bookings Understood. asking

year? with over you of that associated back bookings think looking fourth down So this here sequentially any the years, the help just Can bookings and of quarter last fiscal through the implies quarter. what potential for fourth us stepped then potentially in couple have seasonality

Nicholas Green

there this said degree quarter on I've in our in in It's think mean, Again, reason year I lodged. but I this can't I of X to call, comment get that way this a lumpiness the -- suspect no on the orders quarter. there's occasions. numerous again, seasonality is

You -- falls just you're a in one out of when late $XX million you're and a quite of difference. somewhere an the $XX if will million campaign, PPQ number as booking phase indication. use I'll quarter those falls million, can a $XX or between that's or booking whatever big If

So $XX $XX into turns million. million into million or $XX million $XX turns

those spread pretty big are can days that be So a apart. one event by

I the those obviously which year that critical those, to and know have how goes I out smooth soften until grow, to So every case. that -- we don't the mass by that. is we that's change

of X don't or don't we any quarter any but in particular be -- So than why reason see terms -- should signings. I better any worse any quarter other

Max Smock

for on one try the side. had to it. here Maybe just margin one me Understood. quick I

EBITDA and it jumping bookings help expecting. here? ramp it about Is good a reasonable were here? than us think you the a drop-through revenue through point, off fair we think Margins, moving little the Can from again, lighter reasonable just do quarter. were the most So in to margin recent quarter And off incremental from forward? to forward about point how moving think from if jumping is being a revenue you

Daniel Hart

Yes. Max. Thanks,

you a of straight from we as hit until that how or there margin, say flow-through of to to we plus we then, that's now kind from line going revenues if we're always As quarter, grow margin minus at until ultimate XX% gross is over as a line benefit But our time, from be forward, in to amount some think had But at as it, depressed had quarter-over-quarter. second this get expansion and drew we would continue the margin call to quarter a, a lumpy. far line. I reasonable year we we've of third capacity our bit, going operating looking from margin. expansions going our margin is is fair expected say, that It that the additional top leverage. expense there we've we a have has, our little noncash I top that that grows, added And and the do the

Operator

from the our question comes line Knight And from of Paul next KeyBanc.

Paul Knight

think [ -- current question years ] now. with was most the the upcoming? about what's where think X.X are Dan, in common I quarter CapEx? frankly, about in we What from we quarter. clients that's and should What January right more, the

Daniel Hart

Sure, CapEx is expansion Paul, The great done. question.

maintenance, any the new, have growth I through that's as fairly or that I around and $XX will think is equipment going But you forward, and be think next at to Though that of we of what over now start CapEx we're end CapEx. going still question most and light CapEx, couple years. software brand expansion the our grow the million of So more will fiscal complete. roughly comes main the maintenance. as is, And this far because year,

Paul Knight

And fraction of that what annually? forward Okay. going

Daniel Hart

That's X% Clearly, right. said be couple We've first the of going X% to years, end. of we're revenues. right. to at low That's that

Paul Knight

it's I Lonza? there now about Nick, beast then, owned And the good But being or facility. that Okay. anything different like by a operation Lonza with is know Vacaville buying West bad Coast a

Nicholas Green

location. the as Coast West a like We

understanding and XX,XXX-liter a So My I liters. capacity my it's reactors, larger I think to are. smaller mean, I up But is understanding upwards. much think we that's XX,XXX the than the

in too don't makes made we many really a liter it's be So market in segment operate platform a XX,XXX steel. would X,XXX-liter that Nobody products in. a stainless

think there's don't we're in serving. of overlap markets that I So a lot

was San exiting the believe, they're did I scale smaller few a which the months facility. recently prior, announce They from facility the Francisco --

So be on more haven't a for that us scale West they small the Coast. got notable offering that would probably

But of So Vacaville surprise well. it hopefully, site. that I They that's of spending billion highlight, advantage. think, worth wouldn't $X.X did me on some our as

So facility. capability that Avid of they putting that into some went may be that

I think -- to are read hopefully perspective bit I'm good But competing it. in sure anything, there's time news. from one capable a our a don't forward all a well. anything Lonza try If company going be of might So that with again, and and little long organization we'll for them from positive it's negative a

Operator

over in queue, closing questions further for the to Nick our no with And Green, remarks. any turn CEO, it I'll

Nicholas Green

Yes.

thank to personal first this away for go. my -- He I on was I'd that today passed for having the want just in level, him my sorry thanks call father, X to So say the and On world to in everybody also thought I'd formational industry, regard. in see just one their participating I'd in thank to of like support. CMOs who the bringing But like continued a weeks ago. and

Again, to 'XX really employees speaking appreciate for and everybody, over Avid look fiscal also and in the quarter interest in we who's to and forward support the we from our Avid not-too-distant And year ahead. future investors. the X from you

forward to you So and again, speaking thanks very to much, look shortly.

Operator

the participation for program. in you conference. Thank conclude This does your today's

have disconnect. great may day. Everyone, You now a

Avid Bioservices (CDMO) 29 Apr 242024 Q3 Earnings call transcript