Shares of Avid Bioservices Inc. (Nasdaq: CDMO) fell about 32% in after-hours trading after the company reported fiscal third-quarter sales that missed analysts’ estimates and said it would offer $160 million in convertible senior notes in a private placement.
The Tustin-based drug contract manufacturer said third-quarter sales for the period ended Jan. 31 were $33.8 million, below the $41.6 million average analyst estimate. The company said it is maintaining revenue guidance for fiscal 2024 of $137 million to $147 million.
The decrease in revenue “was primarily attributed to fewer manufacturing runs and a reduction in process development services from early-stage customers,” Avid said in a statement.
The company expects to use the net proceeds from the $160 million offering to repurchase for cash a portion of its 1.250% exchangeable senior notes due 2026 and unwind its capped call transactions with respect to the 2026 notes.
Shares fell to $5.80 in after-hours trading; in regular trading, they had risen 5.9% to $8.79 and a $556 million market cap. Prior to today, the shares had more than doubled from their 52-week low of $4.07 in December.
