DURHAM, N.C., April 29, 2024 (Globe Newswire) — Scorpius Holdings Co., Ltd. (New York Stock Exchange American: SCPX) Integrated Contract Development and Manufacturing Organization (“Scorpius” or the “Company”), a leading large molecule contract development and manufacturing organization (“CDMO”), today provided a strategic, financial and operational update. . For the year ending December 31, 2023.
Jeff Wolf, Chief Executive Officer of Scorpius Holdings, said, “As evidenced by the $4.8 million in revenue from continuing operations we reported in the fourth quarter of 2023, we plan to expand sales and grow our bottom line.'' This is a 570% increase compared to the third quarter of 2023 and a 226% increase compared to the first nine months of this year. Due to our success, we have recorded over $20 million in contract bookings for 2024, coupled with strong interest in our microbial and mammalian capabilities and promising pipeline of new opportunities. We believe we are well-positioned for significant growth in the coming years.”
“The CDMO market for polymeric drug substances is projected to grow from $10 billion in 2023 to $21 billion by 2030.”1, there is a significant need to strengthen industrial capacity. Due to our scalable business model and growing demand for polymer CDMO services, we believe we are well-positioned to capture a significant share of this market. Additionally, we expect Scorpius' growth to accelerate in 2024 and remain optimistic that it will become cash flow positive by early 2025. The Company significantly reduced operating expenses in the fourth quarter due to the completion of facilities and the sale of research and non-core assets. As a result, our more than 60,000 square foot campus provides sufficient capacity to grow the business with minimal additional capital investment, which maximizes profits and returns to shareholders.” concluded Mr. Wolf.
Financial results for fiscal year 2023
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For the year ended December 31, 2023, the Company recognized contract revenue of $6.6 million, National Institutes of Health grant revenue of $300,000, and royalty revenue from continuing operations of $100,000. Revenues for the year ended December 31, 2022 consisted of contract revenue of $100,000 and CPRIT grant revenue from continuing operations of $300,000. This revenue does not reflect revenue from Elusys Therapeutics, which was sold in December 2023 and reported as discontinued operations. The increase in contract revenue is primarily due to the fulfillment of process development contracts, a significant portion of which is from one of his customers and is not expected to generate significant revenue going forward.
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For the year ended December 31, 2023, the Company recognized cost of revenue from product sales of $2.7 million (compared to $100,000 for the year ended December 31, 2022). The $2.6 million increase was due to process development execution costs. contract.
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Selling, general and administrative expenses were $26.2 million and $20.1 million for the years ended December 31, 2023 and 2022, respectively. The $6.1 million increase was primarily due to $2.4 million in increased sales and marketing expenses for our marketing into the CDMO market area, $1.8 million in increased Scorpius personnel to support operations, legal, accounting, and other This is due to the increase in the number of experts. Business management expenses of $1.8 million, increased capital expenses of $1.4 million due to the opening of the San Antonio facility, and increased depreciation expense of $0.8 million due to increased capital expenditures and the amortization of right-of-use assets, which is due to stock-based compensation. offset by a $1.1 million decrease in other facility and operating expenses, a $400,000 decrease in the need for outside consultants related to the construction of Scorpius, and a $0.1 decrease in insurance expense. a million.
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In-process research and development (“IPR&D”) impairment was $0 and $3.5 million for the years ended December 31, 2023 and 2022, respectively. IPR&D was completely crippled in his third quarter of 2022 as the PTX-35 trial did not advance to Phase 2.
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Net loss attributable to Scorpius was approximately $45.2 million, or $1.74 per basic and diluted share, for the year ended December 31, 2023. This compares to approximately $43.4 million, or $1.70 per basic and diluted share, for the year ended December. 31st, 2022.
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As of December 31, 2023, we had approximately $2.4 million in cash, cash equivalents and short-term investments.
In accordance with the disclosure requirements of NYSE American Company Guidelines Sections 401(h) and 610(b), Scorpius will include its audited financial statements for the years ended December 31, 2023 and 2022 in its 2023 Annual Report on Form 10. We are reporting that this is the case. K includes a statement from an independent registered public accounting firm that includes a statement regarding the Company's ability to continue as a going concern due to the fact that the Company is incurring ordinary losses from operations and is not generating significant revenues or profits. Contains an audit opinion. Cash flow from operations.
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1 SkyQuest Polymer Industry Forecast, February 2024
Scorpius Holdings Co., Ltd.
Scorpius Holdings Inc. is an integrated CDMO focused on manufacturing biologics and cell therapy programs for its clients. Scorpius provides a wide range of analytical testing, process development, and manufacturing services to pharmaceutical and biotechnology companies at our state-of-the-art facility in San Antonio, Texas. With an experienced team and a new dedicated US facility, Scorpius is dedicated to transparent collaboration and flexible, high-quality biomanufacturing of biologics. For more information, please visit www.scorpiusbiologics.com.
Forward-looking statements
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,” “could,” “continue,” and “continue.” “Includes words such as “expect,'' “anticipate,'' “intend,'' “plan,'' “believe,'' “estimate,'' and similar expressions, as well as statements such as:
This booking, coupled with strong interest in our microbial and mammalian capabilities and promising pipeline of new opportunities, positions us well for significant growth in 2024 and beyond. The polymeric drug substance CDMO market is projected to grow from $10 billion in 2023 to $21 billion by 2030. Being in a favorable position to capture a significant share of the market. Scorpius' growth will accelerate in 2024 and become cash flow positive by early 2025. The future couldn't be brighter for Scorpius, as our more than 60,000 square foot campus gives us enough capacity to grow our business with minimal additional capital investment and maximize returns and returns to our shareholders. there is no. Important factors that could cause actual results to differ materially from current expectations include, among other things, our ability to expand our polymer biomanufacturing CDMO services, attract new customers, profit from bookings and continue to grow our revenues; Our capabilities include: our ability to capture meaningful market share; Ability to generate positive cash flow. our financing needs, our cash balances sufficient to sustain our operations and our ability to raise capital as needed, our ability to utilize fixed costs and achieve long-term profitability; our ability to obtain regulatory approvals or comply with current regulatory requirements, regulatory limitations on our ability to adequately market our services and compete as a pure-play CDMO and our Form 10; -K Other elements described in our annual report for the year ended December 31, 2023, and subsequent quarterly reports on Form 10-Qs and other filings we make with the SEC. The information in this presentation is provided only as of the date hereof and, except as required by law, the Company reserves the right to make any statements regarding the forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise. We undertake no obligation to update the description.
Contact for media and investor information
david waldman
+1 919 289 4017
ir@scorpiusbiologics.com