Scinai Immunotherapeutics Ltd. (Nasdaq: SCNI) has secured $1.38 million in new funding and reported accelerating growth in its contract development and manufacturing organization (CDMO) business as the biopharmaceutical company prepares to showcase its dual-focus strategy at the BIO International Convention 2025.
The Jerusalem-based company raised the funds through drawdowns under its Standby Equity Purchase Agreement (SEPA) with Yorkville Advisors, executed at a volume-weighted average price of approximately $3.03 per ADS with a 3% discount to market. The funding was completed without warrants, fees, or additional dilution mechanisms, providing operational flexibility to advance both CDMO expansion and the company's nanobody pipeline toward IND-enabling studies.
CDMO Business Shows Rapid Revenue Growth
Scinai's Q1 2025 financial results demonstrated significant momentum in its CDMO operations, with revenues nearly matching the entire 2024 full-year performance in just the first quarter. Based on strong demand and capacity utilization, the company has issued 2025 revenue guidance of approximately $2 million for its CDMO unit.
The company projects its CDMO business will reach breakeven by the end of 2026, with long-term revenue potential of $12 million annually under a single production shift. This capacity is scalable with additional shifts, positioning the unit for further growth as demand increases.
Strategic Cost Management Extends Financial Runway
To optimize operations and extend its financial runway, Scinai implemented a targeted cost-reduction program expected to lower annual employment-related expenses by approximately $815,000. The initiative aims to reduce operational burn rate while preserving core scientific and operational talent critical to executing both CDMO and therapeutic development strategies.
"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."
Dual Business Model Targets I&I Therapeutics and CDMO Services
Scinai operates through two complementary business units. The therapeutic development arm focuses on inflammation and immunology (I&I) biological products, featuring an innovative pipeline of nanosized VHH antibodies (nanoAbs) targeting diseases with large unmet medical needs. The CDMO unit, operating as Scinai BioServices, provides biological drug development, analytical methods development, clinical cGMP manufacturing, and pre-clinical and clinical trial design services for early-stage biotech companies.
At the BIO International Convention 2025 in Boston (June 16-19), CEO Reichman will meet with pharmaceutical executives, institutional investors, and CDMO customers to present the company's recent achievements and discuss partnership opportunities. The company is accelerating supplier and partner engagements to advance its nanobody pipeline while simultaneously expanding CDMO capacity and marketing outreach.
