Scinai Highlights New Funding and CDMO Growth Ahead of BIO International Convention 2025

Rhea-AI Summary

Scinai Immunotherapeutics (NASDAQ: SCNI) announced CEO Amir Reichman's participation in BIO International Convention 2025, highlighting recent company developments. The company secured $1.38M through a SEPA with Yorkville Advisors at $3.03 per ADS. Scinai's CDMO business shows strong growth, with Q1 2025 revenues nearly matching full-year 2024, leading to 2025 revenue guidance of $2M. The company expects CDMO unit breakeven by end-2026, with potential annual revenue of $12M under a single production shift. A cost-reduction program is expected to reduce annual employment expenses by $815,000. The company aims to advance its nanobody pipeline while expanding CDMO operations, with CEO Reichman scheduled to meet potential partners and investors at the upcoming convention.

Positive

• Secured $1.38M in funding through SEPA at minimal 3% discount without warrants or fees
• CDMO Q1 2025 revenues nearly matched full-year 2024 figures
• Projected CDMO revenue of $2M for 2025
• Cost reduction program to save $815,000 in annual employment expenses
• CDMO unit expected to reach breakeven by end of 2026
• Long-term CDMO revenue potential of $12M annually under single shift

Negative

• Company still operating at a loss requiring additional funding
• Dilution from SEPA funding despite minimal discount
• Breakeven for CDMO unit not expected until end of 2026

Insights

Biotech Financial Analyst

Scinai secures $1.38M funding, projects $2M CDMO revenue for 2025, implements $815K cost cuts, strengthening its dual-business model trajectory.

Scinai's recent $1.38 million SEPA funding represents a critical capital injection at favorable terms—executed at just a 3% discount without warrants or additional dilution mechanisms. This financial maneuver strengthens their balance sheet while minimizing shareholder dilution impact. The timing is strategic as it coincides with accelerating growth in their CDMO business, which showed remarkable momentum by nearly matching all of 2024's revenues in Q1 2025 alone.

The $2 million revenue guidance for 2025 represents significant commercial traction in their biologics manufacturing services. More impressive is the projected breakeven timeline for end-2026 and long-term annual revenue potential of $12 million under a single production shift. This scalable manufacturing model offers substantial operating leverage—each additional shift could potentially multiply revenue with minimal incremental fixed costs.

Simultaneously, their $815,000 cost reduction initiative improves financial sustainability by extending runway while preserving core scientific talent. This right-sizing demonstrates management's commitment to capital efficiency while balancing growth investments. The dual-business model (CDMO services and proprietary therapeutics) provides complementary cash flow dynamics—CDMO services generating near-term revenue while the higher-risk/higher-reward therapeutic pipeline advances toward value-inflection milestones.

The company's participation at BIO International positions them to further accelerate partnership opportunities across both business segments, potentially catalyzing additional non-dilutive funding or strategic collaborations that could significantly enhance their financial position and development capabilities.

CEO Amir Reichman to meet investors, pharma partners, and CDMO clients at global biotech conference

JERUSALEM, June 12, 2025 /PRNewswire/ -- Scinai Immunotherapeutics Ltd. (Nasdaq: SCNI), a biopharmaceutical company developing inflammation and immunology (I&I) therapies and offering biologics CDMO services through its Scinai BioServices unit, today announced CEO Amir Reichman's participation in the BIO International Convention 2025 (June 16–19, Boston). The company will leverage the event to showcase its recent financial, operational, and strategic advances to prospective partners and investors.

 

 

Recent SEPA Funding Enhances Operational Flexibility

Last week, Scinai raised $1.38 million in gross proceeds through drawdowns under its Standby Equity Purchase Agreement (SEPA) with Yorkville Advisors. The funding was executed at a volume-weighted average price of approximately $3.03 per ADS, reflecting a 3% discount to market, and was completed without any warrants, fees, or additional dilution mechanisms. The proceeds strengthen Scinai's balance sheet and provide additional capital to advance both its CDMO growth and R&D programs. The company is now accelerating supplier and partner engagements in order to advance its nanobody pipeline toward IND-enabling studies, while simultaneously working to expand CDMO capacity and marketing outreach.

CDMO Business Scales Rapidly; 2025 Revenue Expected to Reach $2M

Scinai's Q1 2025 financial results, released last month, showed rapid growth in CDMO revenues, nearly matching full-year 2024 revenues in just the first quarter. Based on strong demand and capacity utilization, the company has issued 2025 revenue guidance of approximately $2 million. Scinai currently anticipates its CDMO unit will reach breakeven by end of 2026, with long-term revenue potential of $12 million annually under a single production shift, scalable further with additional shifts.

Cost Optimization Reduces Burn, Extends Runway, and Enhances Financial Stability

Scinai recently implemented a targeted cost-reduction program expected to lower annual employment-related expenses by approximately $815,000. The initiative is aimed at reducing the company's operational burn rate, extending its financial runway, and improving overall financial resilience—while preserving the core scientific and operational talent critical to executing its CDMO and therapeutic development strategies.

CEO Commentary and BIO 2025 Objectives

"We're heading into BIO with momentum on all fronts, new funding, commercial traction in our CDMO business, and focused execution across our R&D programs," said Amir Reichman, CEO of Scinai. "We're proud of the progress we've made and are eager to explore new collaborations with pharma partners, CDMO clients, and investors."

At BIO 2025, Mr. Reichman will hold meetings with pharmaceutical executives, institutional investors, and CDMO customers to present Scinai's recent achievements and discuss upcoming partnership opportunities.

For meeting requests, please contact Scinai through the BIO partnering system or at info@scinai.com

About Scinai Immunotherapeutics

Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI) is a biopharmaceutical company with two complementary business units, one focused on in-house development of inflammation and immunology (I&I) biological therapeutic products beginning with an innovative, de-risked pipeline of nanosized VHH antibodies (nanoAbs) targeting diseases with large unmet medical needs, and the other a boutique CDMO providing biological drug development, analytical methods development, clinical cGMP manufacturing, and pre-clinical and clinical trial design and execution services for early stage biotech drug development projects.

Company website: www.scinai.com

Company Contacts

Investor Relations - Allele Capital Partners | +1 978 857 5075 | aeriksen@allelecapital.com   

Business Development | +972 8 930 2529 | bd@scinai.com

 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Words such as "expect," "believe," "intend," "plan," "continue," "may," "will," "anticipate," and similar expressions are intended to identify forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements reflect management's current views with respect to certain current and future events and are subject to various risks, uncertainties and assumptions that could cause the results to differ materially from those expected by the management of Scinai Immunotherapeutics Ltd. Risks and uncertainties include, but are not limited to; the risk that the Company will not be successful in advancing its CDMO growth or R&D programs; that the Company's CDMO will not reach breakeven by the end of 2026, or at all, or that long-term revenues of the CDMO unit will not increase as currently anticipated; the risk that the Company will be unable to remain compliant with the continued listing requirements of Nasdaq; lower than anticipated revenues of Scinai's CDMO business in 2025 and thereafter; failure to sign agreements with other potential clients of the CDMO business; a delay in the commencement and results of pre-clinical and clinical studies, including the Phase 1/2a study for psoriasis, the risk of delay in, Scinai's inability to conduct, or the unsuccessful results of, its research and development activities, including the contemplated in-vivo studies and a clinical trial; the risk that Scinai will not be successful in expanding its CDMO business or in-license other nanoAbs; the risk that Scinai may not be able to secure additional capital on attractive terms, if at all; the risk that the therapeutic and commercial potential of nanoAbs will not be met or that Scinai will not be successful in bringing the nanoAbs towards commercialization; the risk of a delay in the preclinical and clinical trials data for nanoAbs, if any; the risk that our business strategy may not be successful; Scinai's ability to acquire rights to additional product opportunities; Scinai's ability to enter into collaborations on terms acceptable to Scinai or at all; timing of receipt of regulatory approval of Scinai's manufacturing facility in Jerusalem, if at all or when required; and the risk that drug development involves a lengthy and expensive process with uncertain outcomes. More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors" in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission ("SEC") on May 7, 2025, and the Company's subsequent filings with the SEC. Scinai undertakes no obligation to revise or update any forward-looking statement for any reason.

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SOURCE Scinai Immunotherapeutics Ltd.

FAQ

What is Scinai's (SCNI) projected CDMO revenue for 2025?

Scinai projects CDMO revenue of approximately $2 million for 2025, based on strong demand and capacity utilization.

How much funding did Scinai (SCNI) raise through the SEPA agreement?

Scinai raised $1.38 million in gross proceeds through drawdowns under its SEPA with Yorkville Advisors at approximately $3.03 per ADS.

When is Scinai's (SCNI) CDMO unit expected to reach breakeven?

Scinai anticipates its CDMO unit will reach breakeven by the end of 2026.

How much will Scinai (SCNI) save from its cost reduction program?

Scinai's cost reduction program is expected to lower annual employment-related expenses by approximately $815,000.

What is the long-term revenue potential for Scinai's (SCNI) CDMO unit?

The CDMO unit has a long-term revenue potential of $12 million annually under a single production shift, with potential for further scaling with additional shifts.