Scinai Immunotherapeutics (NASDAQ:SCNI) said its first-half 2026 results reflected a major expansion of its contract development and manufacturing organization, or CDMO, operations following its acquisition of former Recipharm operations in Yavne, Israel.
Chief Executive Officer Amir Reichman said the company entered 2026 with an immunology research and development pipeline and an emerging CDMO business in Jerusalem. During the first half, it added the Yavne operation, creating a two-site manufacturing platform spanning Jerusalem and Yavne.
“The first half was therefore largely about transforming the operating platform,” Reichman said. “The second half is increasingly about demonstrating what we can do with it, converting customer activity into revenue, increasing utilization of the infrastructure we now have, and advancing our R&D programs in a capital disciplined way.”
First-Half Results Include Bargain Purchase Gain
Scinai reported first-half revenue of approximately $949,000, compared with about $773,000 in the first half of 2025. The company recorded a gross loss of approximately $2.37 million and an operating loss of approximately $4.6 million as its expanded CDMO footprint added fixed and semi-fixed costs before manufacturing utilization had fully increased.
Reported net income totaled approximately $1.57 million for the first half, but Reichman said investors should not view that figure as evidence of operating profitability. The result was primarily driven by an approximately $6.4 million non-cash, non-operating bargain purchase gain associated with the Recipharm transaction.
The gain was based on the preliminary purchase price allocation, he said. As of June 30, Scinai had approximately $2.85 million in cash and restricted cash.
Reichman said the company’s Jerusalem site is focused primarily on biologics development, analytical services, aseptic processing and clinical cGMP manufacturing. The Yavne site complements those operations with chemistry and active pharmaceutical ingredient manufacturing services for clinical programs.
Management has shifted its focus from integration toward commercialization, execution and capacity utilization, according to Reichman. He also said Scinai’s commercial collaboration with Recipharm is intended to support cooperation and potential customer referrals as client programs progress into later stages and may require Recipharm’s broader manufacturing network.
Customer Orders and Revenue Target
As of Aug. 16, Scinai had approximately $3.1 million in committed customer orders, a management key performance indicator that represents signed purchase orders for specified CDMO services under existing contracts. About $1.6 million was associated with Yavne and approximately $1.5 million with Jerusalem.
Reichman cautioned that the measure should not be treated as a conventional backlog or as $3.1 million in future revenue. Portions may already have been invoiced or recognized as revenue, while the timing of additional revenue recognition depends on project execution and applicable accounting criteria.
As of Aug. 10, approximately $2.1 million of the committed customer orders had been invoiced, while about $1 million represented signed work orders that had not yet been invoiced, he said.
The company continues to pursue approximately $5 million in CDMO revenue for 2026. Reichman said reaching that objective will depend on project timing, execution, revenue-recognition criteria and the conversion of additional commercial opportunities.
He said successful year-end execution would include converting customer work into recognized revenue, expanding customer-authorized work at both sites, raising utilization of its workforce and manufacturing infrastructure, and generating repeat business.
- First-half 2026 revenue was approximately $949,000.
- Committed customer orders were approximately $3.1 million as of Aug. 16.
- Approximately $2.1 million of those orders had been invoiced as of Aug. 10.
- Scinai continues to target roughly $5 million in CDMO revenue for 2026.
Expanded U.S. Clinical Manufacturing Engagement
Reichman highlighted an expanded engagement with a U.S. customer that began with feasibility and cGMP readiness work and subsequently broadened toward a larger chemistry, manufacturing and controls development and clinical manufacturing program. The program is intended to support the customer’s planned U.S. Food and Drug Administration submission and subsequent clinical development.
Scinai has started substantive activities under the engagement and received approximately $650,000 in cash payments and advances after June 30, Reichman said. However, he noted that a definitive expanded agreement remains under negotiation and said the company was not disclosing a final contract value, scope or development timeline.
R&D, Liquidity and Capital Discipline
On the R&D side, Reichman said Scinai is prioritizing programs based on scientific potential, intended product profile, development feasibility, differentiation, technical risk and the capital required to reach meaningful milestones.
The company plans to pursue non-dilutive funding, collaborations and strategic partnerships where possible rather than internally financing every stage of development, he said. PC111 remains an important program and is advancing under Scinai’s option agreement with PinCell, according to Reichman.
Addressing a question about its $15 million standby equity purchase agreement, or SEPA, Reichman said an update to the company’s F-1 registration statement did not represent a new financing or an indication that Scinai plans to immediately draw the full amount. He said the company controls whether and when to access the facility, subject to its terms.
Reichman said any equity issuance would be dilutive, but described the SEPA as a flexible financing tool. The company is also seeking to improve liquidity through CDMO cash generation, customer advances, operating discipline, grants, governmental and nongovernmental funding, and other financing alternatives.
For the remainder of 2026, Reichman said Scinai’s priorities are commercial execution, stronger financial resilience and disciplined advancement of its R&D portfolio.
About Scinai Immunotherapeutics (NASDAQ:SCNI)
Scinai Immunotherapeutics Inc is a clinical-stage biotechnology company dedicated to developing novel small-molecule therapies that enhance the immune system’s capacity to recognize and destroy cancer cells. The company’s research emphasizes checkpoint modulation and the discovery of compounds designed to work in concert with established immuno-oncology treatments across a range of solid tumors.
Scinai’s pipeline comprises preclinical and early-stage candidates, and the company relies on collaborations with academic institutions and contract research organizations to advance its discovery and development efforts.
