Scorpius Holdings, Inc (NYSE
American: SCPX) (“Scorpius” or “the
Company”), an integrated contract development and manufacturing
organization (“CDMO”), today provided a strategic, financial, and
operational update for the third quarter ended September 30, 2024.
Jeff Wolf, CEO of Scorpius Holdings, Inc.,
stated, “Scorpius continued to make strides in Q3, driven by key
partnerships, disciplined financial management, and growth across
our manufacturing and development services. We are proud to report
a 142% year-over-year increase in revenue for the nine months ended
September 30, 2024, reaching $5.2 million, which illustrates the
demand for our services and the successful expansion of our client
base. Alongside this revenue growth, we achieved a 23.5% reduction
in operating expenses for the nine months, a reflection of our
commitment to financial discipline and cost optimization. Our
ongoing cost savings initiatives, expected to exceed $2 million
annually, have strengthened our foundation and keep us on track to
achieve positive cash flow. These actions, coupled with our recent
client wins and government engagements, position us well to capture
new high-margin opportunities in both the government and
biopharmaceutical sectors.”
Wolf added, “The new clients we onboarded this
quarter demonstrate Scorpius' reputation as a trusted
biomanufacturing partner for early-stage and clinical development.
These agreements further highlight our ability to support companies
with secure, U.S.-based solutions for development and manufacturing
needs. These partnerships are indicative of our growing influence
in the industry and our role as a resource for companies seeking
flexible, responsive CDMO services.”
“Additionally, our selection to join the Medical
CBRN Defense Consortium (MCDC) underscores Scorpius' commitment to
advancing U.S. biosecurity. As a member of the MCDC, Scorpius is
now eligible to collaborate on a range of medical countermeasures
addressing chemical, biological, radiological, and nuclear (CBRN)
threats. Furthermore, the passage of the BIOSECURE Act in the House
of Representatives on September 9, 2024, highlights the importance
of strengthening the U.S. biomanufacturing sector, a mission that
aligns closely with our own commitment to supporting public health
and national defense through high-quality, domestic
biomanufacturing capabilities.”
Concluding, Wolf stated, “Our future looks
promising with a weighted average pipeline of business development
opportunities now exceeding $100 million across diverse sectors. As
we look ahead, we are focused on expanding our service offerings,
utilizing our state-of-the-art GMP facility to its full potential,
and driving long-term value for our shareholders. The momentum we
have built this year has positioned the Company to become a leading
CDMO, and we are excited to capitalize on the growth and
opportunities that lie ahead.”
Third Quarter 2024 Financial
Results
For the three months ended September 30, 2024,
the Company recognized $0.9 million of revenue, primarily from
process development services, compared to $0.7 million of CDMO
revenue recognized in the 2023 comparable quarter. The increase in
CDMO revenue is attributable to the completion of process
development services over a larger number of customer
contracts.
Cost of revenues were $0.9 million and $0.5
million for the three months ended September 30, 2024, and 2023,
respectively, and primarily consisted of the direct cost of labor,
overhead and material costs at Scorpius. The increase in cost of
revenues is due to the expanded service offerings and completed
milestone work on multiple CDMO contracts.
Research and development expenses were $4.3
million for the three months ended September 30, 2024, compared to
$5.2 million for the three months ended September 30, 2023.
Selling, general and administrative expenses
were $5.6 million and $6.1 million for the three months ended
September 30, 2024, and 2023, respectively. The decrease of $0.5
million was primarily due to decreases in consultant services of
$0.8 million, sales and marketing of $0.3 million, stock-based
compensation of $0.3 million, partially offset by increases in rent
of $0.3 million, professional services of $0.3 million, personnel
of $0.1 million, and public company expenses of $0.1 million.
For the three months ended September 30, 2024,
the change in fair value of contingent earn-out receivable, related
party increased by $0.2 million, prior to its reclassification to
related party receivable.
Total non-operating expense was $0.9 million for
the three months ended September 30, 2024, which primarily
consisted of $0.7 million from the loss on partial debt
extinguishment, $0.2 million of interest expense on finance leases,
$0.1 million from the change in fair value of the convertible and
non-convertible promissory notes to a related party, partially
offset by an increase of $0.1 million in change in fair value of
related party receivable. Total non-operating expense was $0.1
million for the three months ended September 30, 2023, which
primarily consisted of $0.2 million of interest expense partially
offset by $0.1 million of interest income.
Net loss attributable to Scorpius was
approximately $10.1 million, or ($1.43) per basic and diluted
share, for the three months ended September 30, 2024, compared to
approximately $13.1 million, or ($100.82) per basic and diluted
share, for the three months ended September 30, 2023.
As of September 30, 2024, the Company had
approximately $4.8 million in cash and cash equivalents and
short-term investments. As of November 14, 2024, the Company’s cash
and cash equivalents and short-term investments were approximately
$0.8 million.
Scorpius Holdings, Inc.
Scorpius Holdings, Inc. is an integrated
contract development and manufacturing organization (CDMO) focused
on rapidly advancing biologic and cell therapy programs to the
clinic and beyond. Scorpius offers a broad array of analytical
testing, process development, and manufacturing services to
pharmaceutical and biotech companies at its state-of-the-art
facilities in San Antonio, TX. With an experienced team and new,
purpose-built U.S. facilities, Scorpius is dedicated to transparent
collaboration and flexible, high-quality biologics
biomanufacturing. For more information, please visit
www.scorpiusbiologics.com.
Forward-Looking Statement
This release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. In some cases, forward-looking statements can be
identified by terminology such as “may,” “should,” “potential,”
“continue,” “expects,” “anticipates,” “intends,” “plans,”
“believes,” “estimates,” and similar expressions, and include
statements such as continuing to make strides in Q3, driven by key
partnerships, disciplined financial management, and growth across
the Company’s manufacturing and development services; ongoing cost
savings initiatives, expected to exceed $2 million annually; being
on track to achieve positive cash flow; being positioned to capture
new high-margin opportunities in both the government and
biopharmaceutical sectors; the Company’s growing influence in the
industry and its role as a resource for companies seeking flexible,
responsive CDMO services; the future looking promising with a sales
pipeline now exceeding $100 million in weighted opportunities
across diverse sectors; in the future expanding the Company’s
service offerings, utilizing its state-of-the-art GMP facility to
its full potential, and driving long-term value for its
shareholders; and the Company being positioned to become a leading
CDMO, and to capitalize on the growth and opportunities that lie
ahead. Important factors that could cause actual results to differ
materially from current expectations include, among others, the
Company’s ability to capitalize on the Company’s sales pipeline;
expand its large molecule biomanufacturing CDMO services, attract
new customers, profit from its pipeline and continue to grow
revenue; the ability to capture a meaningful market share; the
ability to generate meaningful cash flow and become cash flow
positive; the Company’s financing needs, its cash balance being
sufficient to sustain operations and its ability to raise capital
when needed, the Company’s ability to leverage fixed costs and
achieve long-term profitability; the Company’s ability to obtain
regulatory approvals or to comply with ongoing regulatory
requirements, regulatory limitations relating to the Company’s
ability to successfully promote its services and compete as a
pure-play CDMO, and other factors described in the Company’s annual
report on Form 10-K for the year ended December 31, 2023,
subsequent quarterly reports on Form 10-Qs and any other filings
the Company makes with the SEC. The information in this
presentation is provided only as of the date presented, and the
Company undertakes no obligation to update any forward-looking
statements contained in this presentation on account of new
information, future events, or otherwise, except as required by
law.
Media and Investor Relations
ContactDavid Waldman+1 919 289
4017ir@scorpiusbiologics.com
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