Avid Bioservices Inc (CDMO) 2025 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to the Avid Bioservices first-quarter fiscal year2025 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Avid Bioservices 2025 財年第一季財務業績電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to turn the conference over to your speaker for today. Tim, please go ahead.

我現在想把今天的會議交給你的發言者。提姆，請繼續。

Thank you. Good afternoon, and thank you for joining us. On today's call, we have Nick Green, President and CEO; Dan Hart, Chief Financial Officer; and Matt Kwietniak, Avid's Chief Commercial Officer.

謝謝。下午好，感謝您加入我們。出席今天的電話會議的有總裁兼執行長尼克·格林 (Nick Green)；丹‧哈特，財務長；以及 Avid 商務長 Matt Kwietniak。

Today, we will be providing an overview of Avid Bioservices contract development and manufacturing business, including updates on corporate activities and financial results for the quarter ended July 31, 2024. After our prepared remarks, we will welcome your questions.

今天，我們將概述 Avid Bioservices 合約開發和製造業務，包括截至 2024 年 7 月 31 日的季度的公司活動和財務業績更新。在我們準備好的發言之後，我們將歡迎您提出問題。

Before we begin, I'd like to caution that comments made during this conference call today, September 9, 2024, we'll contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, concerning the current beliefs of the company, which involves a number of assumptions, risks and uncertainties. Actual results could differ from these statements and the company undertakes no obligation to revise or update any statement made today.

在我們開始之前，我想提醒大家，在今天（2024 年9 月9 日）的電話會議上發表的評論中，我們將包含1995 年《私人證券訴訟改革法案》含義內的某些前瞻性陳述，涉及當前的信念公司的情況，其中涉及許多假設、風險和不確定性。實際結果可能與這些聲明有所不同，公司不承擔修改或更新今天所做的任何聲明的義務。

I encourage you to review all the company's filings with the Securities and Exchange Commission. Concerning these and other matters. Our earnings press release includes discussion of certain non-GAAP information. You can find our earnings press release, including relevant non-GAAP reconciliations on our corporate website, avidbio.com

我鼓勵您查看該公司向美國證券交易委員會提交的所有文件。關於這些和其他問題。我們的收益新聞稿包括對某些非公認會計準則資訊的討論。您可以在我們的公司網站 avidbio.com 上找到我們的收益新聞稿，包括相關的非 GAAP 調整表

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

接下來，我會將電話轉給 Avid 總裁兼執行長 Nick Green。

Thank you, Tim, and thank you to everybody participating today via webcast. Building on the momentum from quarter four fiscal '25 is off to a good start and we are delighted to be reporting what I can only describe as a solid first quarter. We are encouraged by the strong revenues and new business signings, which continued to build our backlog and improve our margins.

謝謝蒂姆，也感謝今天透過網路直播參與的所有人。在 25 財年第四季的勢頭基礎上，我們有了一個良好的開端，我們很高興能夠報告我只能形容為穩健的第一季。我們對強勁的收入和新業務簽約感到鼓舞，這繼續增加了我們的積壓訂單並提高了我們的利潤率。

Matt and I will provide additional details on business development and operations for the period. Following an overview of our first quarter fiscal '25 financial results.

馬特和我將提供有關該期間業務發展和運營的更多詳細資訊。以下是我們 25 財年第一季財務表現的概述。

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

為此，我會將電話轉給丹。

Thank you, Nick. Before I begin, in addition to the brief financial overview, I’ll provide on the call today for additional details on our financial results are included in our press release issued prior to this call and in our Form 10-Q, which was filed today with the SEC.

謝謝你，尼克。在開始之前，除了簡要的財務概述之外，我還將在今天的電話會議上提供有關我們財務業績的更多詳細信息，這些信息包含在本次電話會議之前發布的新聞稿以及我們已提交的10-Q 表格中今天與美國證券交易委員會 (SEC) 會面。

I'll now provide an overview of our financial results from operations for the quarter ended July 31, 2024. Revenues for the first quarter of fiscal 2025 were $40.2 million, representing a 6% increase as compared to revenues of $37.7 million recorded in the same prior year period. The increase was primarily attributed to an increase in process development revenues during the period.

現在，我將概述截至 2024 年 7 月 31 日的季度營運財務表現。2025 財年第一季的營收為 4,020 萬美元，較上年同期的 3,770 萬美元成長 6%。這一增長主要歸因於期內製程開發收入的增加。

Gross profit for the first quarter of fiscal 2025 was $5.7 million, 14% gross margin compared to $4.1 million or 11% gross margin in the first quarter of fiscal 2024. The increase in gross profit for the first quarter ended July 31, 2024, compared to the same prior year period was primarily driven by the increased revenues and lower material costs used for customer programs, partially offset by increases in compensation and benefit related expenses, facility manufacturing and other related expenses and depreciation expense.

2025 財年第一季的毛利為 570 萬美元，毛利率為 14%，而 2024 財年第一季的毛利為 410 萬美元，毛利率為 11%。截至2024 年7 月31 日的第一季毛利與去年同期相比增加，主要是由於收入增加和用於客戶項目的材料成本降低，部分被補償和福利相關費用、設施費用的增加所抵消。

SG&A expenses for the first quarter of fiscal 2025 were $8.2 million, an increase of 30% compared to $6.3 million recorded in the first quarter of fiscal 2024. The increase in SG&A for the first quarter ended July 31, 2024, compared to the same prior year period was primarily due to increases in compensation and benefit related expenses and audit, legal, and other consulting fees.

2025 財年第一季的銷售、管理及行政費用為 820 萬美元，比 2024 財年第一季的 630 萬美元成長了 30%。截至 2024 年 7 月 31 日的第一季銷售、管理及行政費用與去年同期相比增加，主要是由於薪資和福利相關費用以及審計、法律和其他諮詢費用的增加。

During the first quarter of fiscal 2025, the company's net loss was $5.5 million or $0.09 per basic and diluted share, compared to a net loss of $2.1 million or $0.03 per basic and diluted share for the first quarter of fiscal 2024. For the first quarter of fiscal 2025, the company had an adjusted EBITDA of $3 million. Our cash and cash equivalents on July 31, 2024, we're $33.4 million compared to $38.1 million on April 30, 2024.

2025財年第一季，該公司的淨虧損為550萬美元，或每股基本股和稀釋股0.09美元，而2024財年第一季的淨虧損為210萬美元，或每股基本股和稀釋股0.03美元。2025 財年第一季度，該公司調整後 EBITDA 為 300 萬美元。截至 2024 年 7 月 31 日，我們的現金和現金等價物為 3,340 萬美元，而 2024 年 4 月 30 日為 3,810 萬美元。

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

我的財務概述到此結束。我現在將把電話轉給馬特，以了解本季商業活動的最新情況。

Thanks, Dan. Q1 2025 was a highly productive quarter for our team as we signed $66 million net in new project agreements and ended the quarter with a backlog of $219 million. The backlog sets another record high for the company and the net new wins are the highest since the third quarter of fiscal 2023.

謝謝，丹。2025 年第一季對我們的團隊來說是一個高效的季度，我們簽署了淨額 6,600 萬美元的新項目協議，本季末積壓訂單達 2.19 億美元。該公司的積壓訂單再創歷史新高，淨新訂單數量創 2023 財年第三季以來最高。

We are also pleased with the composition of these signings as a significant majority are projects with new customers, including the addition of another large pharma customer. As we've discussed previously, the sales cycle with big pharma companies is generally long and involves.

我們也對這些簽約的組成感到滿意，因為絕大多數是與新客戶的項目，包括另一家大型製藥客戶的增加。正如我們之前討論的，大型製藥公司的銷售週期通常較長且涉及廣泛。

I'm very proud of our team and the professionalism they showed in showcasing Avid's exceptional service skills and quality throughout this process. As we deliver for our new large pharma clients. We expect to capitalize on the reputation we built and increase our exposure to more large pharma over time.

我為我們的團隊以及他們在整個過程中展示 Avid 卓越服務技能和品質時所表現出的專業精神感到非常自豪。當我們為新的大型製藥客戶提供服務時。我們希望利用我們建立的聲譽，並隨著時間的推移增加我們與更多大型製藥公司的接觸。

Our new signings also have a good mix of early and late-stage programs, though we continue to be weighted more toward late-stage during the first quarter, we were successful in bringing in programs at both ends of the development spectrum. As we've discussed on prior earnings calls, a mix of early and late-stage programs provides the balance between near and longer-term revenues as well as the opportunity to grow with new and existing customers.

我們的新簽約項目也很好地結合了早期和後期項目，儘管我們在第一季度繼續更多地關注後期項目，但我們成功地引入了開發範圍兩端的項目。正如我們在先前的財報電話會議上討論的那樣，早期和後期計劃的結合提供了近期和長期收入之間的平衡，以及與新客戶和現有客戶一起成長的機會。

With respect to our newest late-stage programs, we are very pleased to report that to our PPQ programs, one of which is a Phase 3 program advancing towards commercialization, and the other is a commercially approved product currently on the market. As we've discussed in the past, PPQ programs are particularly attractive, as they are a pre-commercialization requirement.

關於我們最新的後期項目，我們非常高興地向我們的 PPQ 項目報告這一點，其中一個是邁向商業化的第三階段項目，另一個是目前市場上已獲得商業批准的產品。正如我們過去所討論的，PPQ 計劃特別有吸引力，因為它們是商業化前的要求。

And while we caution that the execution of a PPQ campaign is only the beginning of a one to two year journey toward a potential commercial approval and subsequent manufacture. We cannot underestimate the importance that we believe such programs may have in our growth now and in the future, as we expect, they will drive an increase in revenues, capacity utilization, and ultimately our margins.

儘管我們警告說，PPQ 活動的執行只是一到兩年的潛在商業批准和後續製造之旅的開始。我們不能低估這些計劃對我們現在和未來成長的重要性，正如我們預期的那樣，它們將推動收入、產能利用率以及最終利潤的增加。

In conclusion, I am extremely pleased with our performance during the first quarter of fiscal 2025, and we are looking forward to the balance of the year with great optimism.

總之，我對我們 2025 財年第一季的業績非常滿意，我們對今年的剩餘時間非常樂觀。

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

我對商業活動的概述到此結束。我現在將把電話轉回尼克，以了解本季營運和其他成就的最新情況。

Thanks, Matt. During the quarter, we achieved several important high marks for the company, including strong revenues, new business signings, both of which continue to drive a robust backlog and improving margins. The investments of the last few years in infrastructure facilities, capacity, and the expansion of our capabilities continue to attract new business and a wider range of opportunities.

謝謝，馬特。在本季度，我們為該公司取得了幾個重要的高分，包括強勁的收入、新業務簽約，這兩者都繼續推動強勁的積壓和不斷提高的利潤率。過去幾年對基礎設施、產能和能力擴展的投資繼續吸引新業務和更廣泛的機會。

Our new infrastructure and organization are now better equipped to support the needs of large pharma with the same excellence and agility that we provide to smaller biotech companies. And we look forward to the continued diversification of our customer base and our project pipeline with key programs from early stage to commercialization.

我們的新基礎設施和組織現在能夠更好地支援大型製藥公司的需求，並提供與小型生物技術公司相同的卓越性和敏捷性。我們期待我們的客戶群和專案管道持續多元化，包括從早期階段到商業化的關鍵專案。

We're excited that our story has continued to unfold just as we have laid out in the past, and I'd like to thank all my colleagues at Avid Bioservices for their part in executing this strategy. Looking ahead, our primary focus is on filling our remaining capacity as we continue to sign new business and execute on our backlog, we expect revenues and capacity utilization to increase, generating stronger margins and positioning Avid to achieve strong growth going forward.

我們很高興我們的故事繼續展開，正如我們過去所闡述的那樣，我要感謝 Avid Bioservices 的所有同事在執行這項策略過程中所做的貢獻。展望未來，我們的主要重點是填補剩餘產能，因為我們將繼續簽署新業務並執行積壓訂單，我們預計收入和產能利用率將增加，從而產生更強勁的利潤率，並使Avid 能夠實現未來的強勁增長。

This concludes my prepared remarks for today, and we can now open the call for questions. Operator?

我今天準備的演講到此結束，現在我們可以開始提問了。操作員？

(Operator Instructions) Sean Dodge, RBC Capital Markets.

（操作員指令）Sean Dodge，RBC 資本市場。

Yup. Thanks. Good afternoon. Congratulations on the strong bookings quarter. On those bookings, so Matt mentioned lots of different contributors there, new customers, early-stage stuff, late-stage, and then the cost of progressing towards commercial.

是的。謝謝。午安.恭喜預訂季度強勁。在這些預訂中，馬特提到了許多不同的貢獻者、新客戶、早期階段的東西、後期階段的東西，以及商業化進程的成本。

I guess, if we think about the mix there and compare it to your current backlog, including these the $66 million of new wins, will this accelerate or decelerate your backlog burn rate over the next, call it four or five quarters or is the make above this pretty similar to what's already in backlog. So really shouldn't affect backlog conversion, if that makes sense.

我想，如果我們考慮那裡的組合，並將其與您當前的積壓工作進行比較，包括這些6600 萬美元的新勝利，這會加速還是減慢您接下來的積壓工作消耗率，稱之為四個或五個季度，或上面的內容與積壓中的內容非常相似。因此，如果有意義的話，確實不應該影響積壓轉換。

Yeah, Sean, it does make sense. I don't think it's going to have a dramatic effect, but it is going to be probably slightly more accelerating and decelerating, just due to the fact that we've got, I think a better proportion of the early phase clients in the quarter than we have in prior quarters.

是的，肖恩，這確實有道理。我認為這不會產生巨大的影響，但它可能會稍微加速和減速，只是因為我們已經擁有，我認為本季度早期階段客戶的比例更高比我們之前幾個季度的情況要多。

As you know, the prior quarters were in the high watermark. But I think there was -- it was nice to see as -- I think, Matt, articulated to see a sort of a nice balance to the to the signings. So slightly accelerating, but I wouldn't say it was worth being notable in that regard.

如您所知，前幾個季度處於高水位線。但我認為——很高興看到——我認為，馬特，在簽約方面看到了一種很好的平衡。略有加速，但我不認為在這方面值得關注。

Okay, great. And then you mentioned two PPQ campaign you won in the quarter. I guess, any more detail you can share on those? Or are these something you took away from another CDMO? Or are you going to be serving as a secondary supplier in those cases? And then any detailed bookings you can share on once these things get fully ramped, what they could contribute kind of roughly in terms of annual revenue?

好的，太好了。然後您提到了您在本季度贏得的兩次 PPQ 活動。我想，可以分享更多細節嗎？或者這些是你從另一個 CDMO 拿來的東西？或者在這些情況下您將充當二級供應商？一旦這些東西完全投入使用，您可以分享任何詳細的預訂，它們對年收入的貢獻大致是多少？

Yeah, we don't really go forward too much in terms of forecasting the future revenues. But in terms of where they came from, interestingly, one of them actually is a commercial product that is being outsourced from internal manufacture. So it's already approved, which is quite exciting.

是的，我們在預測未來收入方面並沒有做太多的預測。但有趣的是，就它們的來源而言，其中之一實際上是從內部製造外包的商業產品。所以它已經獲得批准，這是相當令人興奮的。

So that one probably a little more advanced than most in that regard, as I say, it's already on the market. The other one, by virtue of the fact that it is coming in, it's coming in from an another CDMO. And Phase 3, obviously, Phase 1 and Phase 2 have been manufactured somewhere else. So that's kind of a, I guess, a win to some degree. No second suppliers as far as I'm aware.

因此，正如我所說，它在這方面可能比大多數產品更先進，它已經上市了。另一個，由於它是來自另一個 CDMO。顯然，第三階段、第一階段和第二階段是在其他地方製造的。所以我想，這在某種程度上是一種勝利。據我所知，沒有第二個供應商。

Okay. Got it. Thanks and congratulations again.

好的。知道了。再次感謝和祝賀。

Thanks very much, Sean. Appreciate it.

非常感謝，肖恩。欣賞它。

Jacob Johnson, Stephens.

雅各約翰遜、史蒂芬斯。

Good afternoon. This is [Mac] on for Jacob. Just a few quick questions for me. Just on the large pharma strategy, I know, you called out another addition there, but given there's been some noise around large pharma pruning some earlier-stage pipelines in recent months. I guess, there's two questions here. Is there any update on how your large pharma strategy is progressing as compared to your internal expectations? And two, any changes in demand from these customers as of late?

午安.這是雅各的[Mac]。只是問我幾個簡單的問題。我知道，就大型製藥策略而言，您在那裡提出了另一個補充，但考慮到近幾個月來大型製藥公司修剪一些早期管道的聲音一直存在。我想，這裡有兩個問題。與您的內部預期相比，您的大型製藥策略的進展是否有任何更新？第二，這些客戶的需求最近有什麼改變嗎？

I'll answer your second question first, Mac. No changes from them as late. So I think, getting to your point of whether their strategies or issues have changed their demand from us personally, then that wouldn't seem to be the case. I think, in terms of the strategy as a whole, it's one of those strategies that's long and as Matt has alluded to, it's very involved.

我先回答你的第二個問題，Mac。他們遲遲沒有改變。所以我認為，如果他們的策略或問題是否改變了他們對我們個人的要求，那麼情況似乎並非如此。我認為，就整個戰略而言，這是很長的戰略之一，正如馬特所提到的，它非常複雜。

There's a lot of audits, visits, establishing your reputation, et cetera. I think we're on track for where we'd like to be in general. I think there are some areas we'd like to have moved a little bit quicker in some accounts, but there are other accounts that have developed that we didn't necessarily expect to develop this quick.

有很多審核、訪問、建立聲譽等等。我認為我們正在朝著我們總體目標邁進。我認為我們希望在某些帳戶中的某些領域能夠更快地發展，但還有其他已經開發的帳戶，我們不一定期望能夠如此快速地發展。

So on the whole, roughly in line being in it rather inpatient individual though, I would say, I'd always wanted to be faster if we could be. I can assure you though, however, that speed is not down to anything that where we're not trying to do ourselves.

所以總的來說，大致上是在一個相當不耐煩的人中，但我想說，如果可以的話，我一直想更快。不過，我可以向您保證，速度不會低於我們自己不嘗試做的任何事情。

I appreciate the color there. And then just quickly on the cell and gene therapy side of things. I think you mentioned last quarter, this was a bit behind traditional biologics demand in terms of coming back. And given your early phase comments, is this still the case or what are you seeing in those end markets?

我很欣賞那裡的顏色。然後快速討論細胞和基因治療的問題。我想你上個季度有提到過，就回歸而言，這有點落後於傳統生物製品的需求。鑑於您的早期評論，情況仍然如此嗎？

Yeah, I think that still is the case. I certainly, don't see it. I haven't seen it catch up in any way, shape or form at the moment. I do think the vast majority of the driver is in the mammalian conversations continue to be pretty nicely developing in the cell and gene therapy area. But I wouldn't say that the activity, the funding or what our view is flowing back into that sector yet.

是的，我認為情況仍然如此。我當然看不到。目前我還沒有看到它以任何方式、形狀或形式迎頭趕上。我確實認為絕大多數驅動因素是哺乳動物對話在細胞和基因治療領域繼續良好發展。但我不會說活動、資金或我們的觀點正在回流到該領域。

So mammalian ahead for sure. I don't think it's cell and gene caught up anything from where we were last quarter. We do have some interesting conversations and hopefully in the next quarter or two, we can start to convert the conversations into orders, but that's kind of where we are at the moment.

所以哺乳動物肯定領先。我認為細胞和基因並沒有趕上上個季度的水平。我們確實進行了一些有趣的對話，希望在接下來的一兩個季度，我們可以開始將對話轉化為訂單，但這就是我們目前的處境。

Thank you. I appreciate you taking the questions.

謝謝。感謝您提出問題。

Appreciate it.

欣賞它。

Matt Hewitt, Craig-Hallum Capital Group.

馬特·休伊特，克雷格-哈勒姆資本集團。

Good afternoon. Congratulations on the strong quarter. Maybe first up, and I apologize, the vote was happening right as we were coming on, but the BIOSECURE Act made it to the house floor. I did not hear, but I'm just curious what your thoughts are.

午安.恭喜季度表現強勁。也許首先，我很抱歉，投票是在我們即將開始的時候進行的，但《生物安全法案》已經進入了眾議院。我沒有聽到，但我只是好奇你的想法是什麼。

And I know that your customers don't always call in and say, hey, because of this potential law, we're going to sign up. But I'm just curious if you're seeing any change or any increase in conversations that could possibly be tied to that act.

我知道你的客戶並不總是打電話來說，嘿，由於這項潛在的法律，我們要註冊。但我只是好奇你是否看到任何可能與該行為有關的變化或對話的增加。

Yeah, I mean, a very high level, Matt. I think, we obviously compete in that marketplace and we compete against Asian competitors and Chinese competitors in particular on a regular day-to-day basis. I would say that, of the of the pipeline that we get from the numbers that we've managed to scratch through and be able to try to get some definition about half of the ones that we see from China are probably BIOSECURE associated to date.

是的，我的意思是，非常高的水平，馬特。我認為，我們顯然在這個市場上競爭，我們每天都會與亞洲競爭對手，特別是中國競爭對手競爭。我想說的是，我們從我們已經設法通過的數字中獲得的管道中，並能夠嘗試獲得一些定義，我們從中國看到的管道中，迄今為止可能有一半與 BIOSECURE 相關。

There's an element of that. Some of them were -- the others that we've already won or have been in progress with were prior to any BIOSECURE conversation that they initiated. So I think it's fairly safe to say the other half wouldn't -- have nothing to do with that.

其中有一個因素。其中一些是——其他一些我們已經贏得或正在進行中的，是在他們發起任何 BIOSECURE 對話之前。所以我認為可以肯定地說另一半不會——與此無關。

How that builds up is going to be interesting. I think, there are two fundamental elements is that while there's no definition about it, there's obviously concern and fear, so that can drive decision making. Although I do think there's also in the absence of the law, there's also people who feel that, can we get in and out, or can we progress as we might do in the past until it's more defined.

如何建立起來將會很有趣。我認為有兩個基本要素，雖然沒有定義，但顯然存在擔憂和恐懼，因此可以推動決策。雖然我確實認為在沒有法律的情況下也會存在這種情況，但也有人覺得，我們是否可以進出，或者我們是否可以像過去那樣取得進展，直到它得到更明確的規定。

So it's going to be interesting to see how that actually pans out. I mean, it's difficult to say that it's a bad thing for a US-based CDMO with capacity like we are. So it will be certainly interesting to see how that pans out over the near term.

因此，看看結果如何將會很有趣。我的意思是，對於像我們這樣有能力的美國 CDMO 來說，很難說這是一件壞事。因此，看看短期內的結果如何肯定會很有趣。

Got it. And then second question regarding seasonality, obviously, this is the quarter we're currently in is normally the quarter you're shut down and kind of going through some cleaning and all that.

知道了。然後是關於季節性的第二個問題，顯然，這是我們目前所處的季度，通常是您關閉並進行一些清潔之類的季度。

But given the newness of the facilities and the equipment, is it safe to expect that, that shutdown period will be lighter this year than then you witnessed the last few years and if that's the case, you just -- maybe that normal seasonality isn't as big of a deal this year. Am I thinking about that right?

但考慮到設施和設備的新穎性，可以肯定的是，今年的停工期會比過去幾年的時間要短，如果是這樣的話，你只是 - 也許正常的季節性不是'今年沒什麼大不了的。我這樣想對嗎？

Right. I mean, in general terms, I think you are. What I would say for this year is, I wouldn't be looking at it that way right off the bat. We've just got the new facilities online. So we do still need to maintain those facilities. We still do need to do certain activities to make sure everything's up to date and any calibrations and things like that are all done.

正確的。我的意思是，總的來說，我認為你是。今年我想說的是，我不會立即這樣看待它。我們剛剛將新設施上線。所以我們仍然需要維護這些設施。我們仍然需要進行某些活動，以確保一切都是最新的，並且所有校準和類似的事情都已完成。

So we are trying a few things that we think we'll be able to in the longer term, reduce the scope of that shutdown. But I -- on the basis that it's our first year with the new facilities, I wouldn't be building in too much to that effect. If you know what, I mean.

因此，我們正在嘗試一些我們認為從長遠來看能夠縮小關閉範圍的事情。但我——基於這是我們使用新設施的第一年，我不會為此投入太多。如果你明白我的意思。

Got it. Understood. Thank you.

知道了。明白了。謝謝。

Paul Knight, KeyBanc Capital Markets.

Paul Knight，KeyBanc 資本市場。

Hi, Nick. Did you spell out how much of the new orders, maybe Matt, were in the cell and gene therapy area?

嗨，尼克。您是否說明了新訂單（也許是馬特）中有多少是在細胞和基因治療領域？

A small proportion, Paul. We don't break that one out, but it's certainly not material in the overall scheme of things. So we don't segment those two just yet, but not enormous.

比例很小，保羅。我們不會詳細說明這一點，但它在整體方案中肯定不重要。所以我們還沒有對這兩者進行細分，但也不是很大。

A company in the, not kind of in the media market has said they expect to four quarter lag on cell therapy funding. Do you think that's kind of in the ballpark?

一家非媒體市場的公司表示，他們預計細胞治療資金將落後四季。你認為這在球場上嗎？

I'm not sure. I go quite as far as four quarters, it depends on -- it's a difficult way to look at. We've seen some pickup. I think, if I looking back at the mammalian side, I think, November was the low from the end of October, beginning of November was the low. So we're not gone for four quarters.

我不知道。我已經達到了四個季度，這取決於——這是一種很難看待的方式。我們已經看到了一些提貨。我想，如果我回顧哺乳動物方面，我認為，11 月是 10 月底的低點，11 月初是低點。所以我們四個季度都沒有離開。

I think, I've seen some pickup in certainly our activity in terms of the cell and gene therapy. But I wouldn't say it's accelerating at the level that we saw from November in the mammalian side. And even in the mammalian side, we are getting some sort of conflicting data. I think, Charles River has indicated that they were seeing a reduction in early phase.

我認為，我確實看到我們在細胞和基因治療方面的活動有所回升。但我不會說它正在加速達到我們從 11 月在哺乳動物方面看到的水平。即使在哺乳動物方面，我們也得到了一些相互矛盾的數據。我認為 Charles River 已表示他們在早期階段看到了減少。

So I think it's coming through. I think it would be a probably a little more optimistic from what we've seen, but we're certainly no bellwether for the overall industry. So I'm not going to argue it somebody else sees it as four quarters, and we might see it at two or three, but that's where we are at the moment, I think.

所以我認為它正在實現。我認為從我們所看到的情況來看，這可能會更加樂觀一些，但我們肯定不是整個行業的領頭羊。所以我不會爭論，其他人認為是四個季度，我們可能會看到兩個或三個季度，但我認為這就是我們目前的情況。

And Nick, you had previously indicated that sometimes the backlog now would be extended beyond a year. I'm assuming that, that's still the case, but is it stretched even more in terms of duration of the project? Or is it kind of similar to what you've been seeing?

尼克，您之前曾表示有時積壓的訂單會延長一年以上。我假設情況仍然如此，但就專案的持續時間而言，情況是否會更加延長？或者說這和你所看到的有什麼相似之處？

No, I think that was kind of the crux of Sean's question at the beginning. I think, the mix of the signings that we've got this quarter are a little richer in the early phase than traditionally. Still the majority of them are late phase, but there's a higher proportion than we are on a higher number of early phase than we had seen in the last two or three quarters of last year.

不，我認為這就是肖恩一開始提出的問題的癥結所在。我認為，本季我們的簽約組合在早期階段比傳統情況要豐富一些。其中大多數仍處於晚期階段，但早期階段的比例高於去年最後兩三個季度的情況。

So if anything, it's slightly accelerating it and maybe reducing it from 15 to a little bit less, but it's not material. But I would say, it's a definite not extending as it were.

因此，如果有什麼影響的話，那就是它稍微加速了它，也許將它從 15 減少到了一點，但這並不重要。但我想說，這絕對不是延伸。

And then lastly, I know there's BIOSECURE here in the United States, but is there anything new on the regulatory front in Europe that puts you in a bit better of a position?

最後，我知道美國有 BIOSECURE，但是歐洲的監管方面有什麼新的東西可以讓您處於更好的位置嗎？

No. I mean, I heard some rumblings that people might believe in, that they may take similar actions in Europe. I haven't seen anything definitive that suggests that, that's going to be the case. So really, all we have today as far as I can see in the immediate horizon is the BIOSECURE Act here in the US.

不。我的意思是，我聽到了一些人們可能相信的傳言，他們可能會在歐洲採取類似的行動。我還沒有看到任何明確的訊息表明情況會如此。事實上，據我所知，我們今天所擁有的就是美國的《BIOSECURE 法案》。

Okay. Thanks.

好的。謝謝。

Max Smock, William Blair.

馬克斯·斯莫克，威廉·布萊爾。

Hey, guys. Good afternoon. Thanks for taking our questions. To start just echo Sean's comments early and say congrats on the nice bookings quarter here in the first quarter. I wanted to ask a follow-up on Matt's question on BIOSECURE. It sounds like you have some customers that are still waiting to see, how it plays out before moving away from China.

嘿，夥計們。午安.感謝您回答我們的問題。首先回應 Sean 的評論，並祝賀第一季的良好預訂季度。我想對 Matt 關於 BIOSECURE 的問題進行跟進。聽起來您的一些客戶仍在等待，看看在離開中國之前會發生什麼。

But is it fair to say that most of the companies you're talking with are already committed to changing their behavior and moving away from China, kind of regardless of what happens with the bill here near term? And in your conversations, are you picking up on any material differences in terms of how small biotech and large pharma are currently reacting or planning to react to the BIOSECURE Act?

但可以公平地說，與您交談的大多數公司已經致力於改變其行為並撤離中國，而不管該法案近期會發生什麼？在你們的談話中，你是否發現小型生物技術公司和大型製藥公司目前對《生物安全法案》的反應或計劃有何重大差異？

Good questions, Max. I think, when people are talking to as we obviously get, I guess, a more biased view of the impact of BIOSECURE. Because if you are in China and you're coming to Avid and you're talking to me about it, then that suggests that you've already got caused the problem. So the person who isn't looking to move won't even call me, so I won't even hear their voice.

好問題，馬克斯。我認為，當人們在談論時，我想，我們顯然對 BIOSECURE 的影響有更偏頗的看法。因為如果您在中國，並且來到 Avid 並與我談論這件事，那麼這表明您已經造成了問題。所以不想動的人甚至不會打電話給我，所以我甚至聽不到他們的聲音。

So that was always a little bit difficult to judge on the total pipeline of customers, are they -- what we're seeing, obviously, is thinking of moving or are moving. So I'm not sure, how much I would actually rely on that as a data point, but I think we've certainly seen an increasing number of conversations around that area.

因此，根據客戶的總管道來判斷總是有點困難，顯然我們所看到的是正在考慮搬家或正在搬家。所以我不確定，我實際上會在多大程度上依賴它作為數據點，但我認為我們肯定已經看到圍繞該領域的對話越來越多。

Big pharma to emerging pharma, I think, it's not necessarily the easiest one. Again, I don't deal with all big pharma, but I would say that, we've seen interest in Avid. Is that interest in Avid more because they're looking at like getting rid of somebody else or looking at other alternatives that may be backups, it could well be.

我認為，從大型製藥公司到新興製藥公司，這不一定是最簡單的。再說一次，我不與所有大型製藥公司打交道，但我想說的是，我們已經看到了人們對 Avid 的興趣。對 Avid 的興趣是否更多是因為他們正在考慮擺脫其他人或尋找其他可能作為備份的替代方案，很可能是這樣。

I think, also it depends what phase that you're in the biotech phase. I think if you're in early phase, then maybe it is the view that you could get in and out before that occurs, in which case then you could still source from that region or those people.

我認為，這也取決於您處於生物技術階段的哪個階段。我認為如果你處於早期階段，那麼也許你可以在這種情況發生之前進出，在這種情況下，你仍然可以從那個地區或那些人那裡購買。

In the case of the later phase, then that obviously becomes a little bit more concerning because you may have a regulatory filing that could get caught up in the outcome of whatever the outcome ends up being. So I think I would see the larger concern from what we can see would be probably the later phase, clinical candidates that are probably getting more attention than anybody else. But I do hasten to point out that we are not the bellwether of the whole industry. So it's the microcosm that we see.

在後期階段，這顯然會變得更加令人擔憂，因為您可能有一份監管備案，可能會陷入無論結果如何的結果。因此，我認為從我們所看到的情況來看，我會看到更大的擔憂可能是後期階段，臨床候選人可能比其他任何人都受到更多關注。但我必須指出，我們並不是整個產業的領頭羊。所以這是我們看到的縮影。

Yeah. Fair enough. And thanks for that comment, Nick. A lot of good stuff in there. Maybe following up on an unrelated one, I wanted to ask about Halozyme, which obviously a key customer was over half your revenue in fiscal '23, but that was down to about a third and fiscal 2024.

是的。很公平。感謝您的評論，尼克。裡面有很多好東西。也許是為了跟進一個不相關的問題，我想問一下Halozyme，它顯然是一個關鍵客戶，佔了23 財年收入的一半以上，但到了2024 財年，這一數字下降到三分之一左右。

Can you just give us an update around what exactly happened in fiscal 2023? How Halozyme revenues trended so far or trended so far here in the first quarter? And kind of what you're baking in for Halozyme revenue here in fiscal 2025? And just your overall level of visibility into revenue this year from this key customer.

您能為我們介紹一下 2023 財年到底發生了什麼事嗎？到目前為止，Halozyme 的營收趨勢如何？您對 Halozyme 2025 財年的營收有何預期？以及您對該關鍵客戶今年收入的整體可見度。

Yeah. Again, I obviously do know, what went on between ourselves and Halozyme. I don't think any of it's negative in any way, shape or form. But I try to avoid commenting on somebody else's business, particularly in a public environment, in the public company, rather.

是的。再說一次，我顯然確實知道我們和 Halozyme 之間發生了什麼。我不認為它以任何方式、形式或形式都是負面的。但我盡量避免評論別人的業務，尤其是在公共環境中，在上市公司。

So I think that I'll leave that one as it is. But what I can say is I think the relationship remains strong. I think that what's been going on over the last few years is nothing but positive. As far as I can see, we continue to be the best supplier we possibly can be and the service that as well as our other clients are the highest possible standard that we can.

所以我想我會保持原樣。但我可以說的是，我認為這種關係仍然牢固。我認為過去幾年發生的事情都是正面的。據我所知，我們仍然是最好的供應商，我們為其他客戶提供的服務也是最高標準。

I've said it publicly in the past, I've looked to see the Halozyme revenues continue to grow, and I'd love to see them become a smaller proportion of our business as we continue to grow ourselves and diversify our customer base and we remain pretty much the same.

我過去曾公開說過，我希望看到 Halozyme 的收入繼續增長，我希望看到它們在我們業務中所佔的比例越來越小，因為我們不斷發展自己，使我們的客戶群多樣化，我們幾乎保持不變。

So I think, what I would take out of the last year is that we're still growing compared to where we were over the last few years and it is becoming a smaller number over the long term. And that's, I think, in the direction that we've been articulating. And again, I just hope that we can continue to grow along with Halozyme.

所以我認為，我從去年得出的結論是，與過去幾年相比，我們仍在成長，而且從長遠來看，這個數字正在變得越來越小。我認為，這就是我們一直在闡明的方向。再次強調，我只是希望我們能夠繼續與 Halozyme 一起成長。

Yeah. Understood. And again, not necessarily a bad thing, right, I think it speaks to the strength of your -- the rest of your customer base there. Maybe, just sneaking a final one in here for me. Wanted to ask about the margins and just whether or not there's any color you can give us just in terms of expectations for adjusted EBITDA or adjusted EBITDA margin here in fiscal 2025.

是的。明白了。再說一遍，這不一定是壞事，對吧，我認為這說明了您的其他客戶群的實力。也許，只是偷偷地為我放了最後一張。我想詢問利潤率，以及您是否可以就 2025 財年調整後 EBITDA 或調整後 EBITDA 利潤率的預期向我們提供任何資訊。

And from a modeling perspective, is it reasonable to think about this quarter is going to be in a good jumping off point for the rest of the year and assuming something like that 40% to 60% drop-through rate on incremental revenue that you pointed to in the past?

從建模的角度來看，認為本季將處於今年剩餘時間的良好起點並假設您指出的增量收入下降率為 40% 至 60% 是否合理到過去？

Hi, Max, good question. It was nice to see that we built off the momentum of where we're coming off of Q2 of last year, looking at Q3 and Q4 increase and we're seeing where we ended up for Q4 as far as fall through of overall gross margin right down to EBITDA margin, as we continue to grow in approach the guide for this year.

嗨，麥克斯，好問題。很高興看到我們建立了去年第二季度的勢頭，看看第三季度和第四季度的增長，我們看到了第四季度整體毛利率下降的情況隨著我們繼續接近今年的指導方針，我們的利潤率一直下降到EBITDA 利潤率。

I'd like to see EBITDA continue to grow, but as we always say, the quarters can be lumpy. So we will have some pluses and minuses as we grow. But I'd like to see something similar and continue to grow as we go forward.

我希望看到 EBITDA 繼續成長，但正如我們常說的，季度可能會不穩定。所以，隨著我們的成長，我們會有一些優點和缺點。但我希望看到類似的東西，並隨著我們的前進而繼續成長。

Understood. Thanks again for taking my questions.

明白了。再次感謝您回答我的問題。

Thanks, Max.

謝謝，馬克斯。

Thank you. And that does conclude today's Q&A session. I would like to turn the call back over to Nick, for closing remarks. Please go ahead.

謝謝。今天的問答環節到此結束。我想將電話轉回給尼克，讓他發表結束語。請繼續。

Thank you, operator, and thank you to everyone participating on today's call. We are highly encouraged by the progress during the first quarter and we look ahead to the remainder of fiscal 2025 with some optimism.

謝謝接線員，也謝謝參加今天電話會議的所有人。我們對第一季的進展感到非常鼓舞，並對 2025 財年剩餘時間持樂觀態度。

We thank our customers for their trust and partnership, our investors for their continued support and we wish to recognize the exceptional employees who continue to drive the success. Thank you again for participating today and for your continued support of Avid Bioservices.

我們感謝客戶的信任和合作關係，感謝投資者的持續支持，我們希望表彰那些繼續推動成功的傑出員工。再次感謝您今天的參與以及對 Avid Bioservices 的持續支持。

This does conclude today's conference call. You may all disconnect.

今天的電話會議到此結束。你們都可以斷開連線。