Scorpius Holdings, Inc (NYSE
American: SCPX) (‘Scorpius” or “the
Company”), an integrated contract development and manufacturing
organization (“CDMO”), today provided strategic, financial, and
operational updates for the first quarter ended March 31, 2024.
Jeff Wolf, CEO of Scorpius Holdings, Inc.,
stated, “We are successfully executing our strategy to enhance
revenue and reduce costs as we seek to become cash flow positive in
the near future. This quarter is indicative of this goal as we
achieved a 359% increase in revenue while reducing operating
expenses by 34% over the same period last year. We believe this
performance reinforces the growing demand for our services and our
prudent financial management. Moreover, we have built a highly
scalable business model poised to generate meaningful cash flow as
we continue to grow our sales and increase utilization of our
state-of-the-art San Antonio campus, which we anticipate will allow
us to achieve meaningful operating leverage. We are very
confident that the future for Scorpius is brighter than ever, with
significant industry-wide capacity shortages, and our growing
revenue backlog, which stood at $10.8 million as of March 31,
2024.”
2023 Financial Results
For the three months ended March 31, 2024, the
Company recognized $3.5 million of revenue from process
development. For the three months ended March 31, 2023, the Company
recognized $0.7 million of process development revenue and $0.1
million of license revenue. The increase in process development
revenue was attributable to the expanded biomanufacturing
operations and service offerings of the CDMO.
Cost of revenues were $0.9 million and $0.6
million for the three months ended March 31, 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 was due to the expanded service offerings and completed
milestone work on multiple CDMO contracts.
Research and development expenses were $3.9
million for the three months ended March 31, 2024, compared to $6.3
million for the three months ended March 31, 2023.
Selling, general and administrative expenses
were $5.0 million and $6.5 million for the three months ended March
31, 2024, and 2023, respectively. The decrease of $1.5 million was
primarily due to decreases in marketing expense of $0.5 million,
consultant labor of $0.5 million, and stock-based compensation of
$0.5 million.
For the three months ended March 31, 2024, the
change in fair value of contingent earn-out receivable, related
party, was $1.0 million. This change was primarily due to an
increase in expected value of the earn-out due to a new contract
received by Elusys Therapeutics.
Total non-operating income was $0.7 million for
the three months ended March 31, 2024, which primarily consisted of
$1.0 million from the sale of an intellectual property license,
partially offset by $0.2 million of interest expense on finance
leases, and $0.1 million change in fair value of convertible
promissory note, related party. Total non-operating income was $0.1
million for the three months ended March 31, 2023, which primarily
consisted of $0.2 million of interest income, $0.1 million of
unrealized gain on short-term investment balances, partially offset
by $0.2 million of interest expense on finance leases and other
expense.
Net loss attributable to Scorpius was
approximately $4.4 million, or ($0.16) per basic and diluted share,
for the three months ended March 31, 2024, compared to
approximately $12.8 million, or ($0.49) per basic and diluted
share, for the three months ended March 31, 2023.
As of March 31, 2024, the Company had
approximately $1.7 million in cash, cash equivalents, and
short-term investments. On May 16, 2024, the Company consummated a
public offering resulting in aggregate gross proceeds of
approximately $6.0 million, before deducting underwriting discounts
and other offering expenses.
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 becoming cash flow positive in the near
future, the performance reinforcing the growing demand for the
Company’s services and its prudent financial management; the
business model being poised to generate meaningful cash flow;
continuing to grow sales and increase utilization of the
state-of-the-art San Antonio campus which will allow the Company to
achieve meaningful operating leverage, and the future for Scorpius
being brighter than ever. Important factors that could cause actual
results to differ materially from current expectations include,
among others, the Company’s ability to expand its large molecule
biomanufacturing CDMO services, attract new customers, profit from
its bookings 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
Scorpius (AMEX:SCPX)
Historical Stock Chart
From Jul 2024 to Aug 2024
Scorpius (AMEX:SCPX)
Historical Stock Chart
From Aug 2023 to Aug 2024