Scorpius Holdings Reports 16% Year-Over-Year Revenue Growth
Operating expenses reduced by 25%
Pipeline exceeds $100 million in weighted opportunities in government and manufacturing sectors
Scorpius Holdings, Inc. (NYSE American: SCPX) (“Scorpius” or “the Company”), an integrated contract development and manufacturing organization (“CDMO”), has shared its strategic, financial, and operational updates for the second quarter.
Jeff Wolf, CEO of Scorpius Holdings, Inc., expressed pride in the Company’s achievements during the second quarter. He noted, “Despite encountering significant working capital challenges, we managed to increase our revenues by 16% while also reducing operating expenses by 25% compared to the same period last year. With our recent financing, we now have a much stronger balance sheet, which positions us well to take advantage of several exciting projects ahead. We believe this funding will help us accelerate revenue growth and reach our goal of positive cash flow.”
He added, “Our accomplishments this year underscore the substantial progress we’ve made in innovation and customer-centric program management across our service platforms. This progress is evident in our strong pipeline, which now exceeds $100 million in weighted opportunities across the government and manufacturing sectors. We expect to close many of these opportunities by the end of the year and are confident in our ability to keep this momentum going.”
Financial Overview for the Second Quarter of 2024
For the three months ending June 30, 2024, the Company reported $0.8 million in revenue, primarily from process development, compared to $0.7 million for the same quarter last year. This increase in process development revenue is due to the completion of services for a larger number of customer contracts.
The cost of revenues was $0.8 million, up from $0.4 million during the same period last year. This increase primarily reflects the direct costs associated with labor, overhead, and materials at Scorpius, driven by expanded service offerings and milestone work on multiple CDMO contracts.
Research and development expenses totaled $3.6 million, down from $5.2 million in the previous year. Additionally, selling, general, and administrative expenses decreased from $7.0 million to $5.0 million, a reduction of $2.0 million primarily resulting from cuts in consultant services, professional services, sales and marketing, and stock-based compensation.
The Company reported a net loss attributable to Scorpius of approximately $8.9 million, or ($26.98) per basic and diluted share, for the three months ending June 30, 2024. This is an improvement compared to a net loss of approximately $13.9 million, or ($106.67) per share, for the same period last year.
Financial Position and Outlook
As of June 30, 2024, the Company had about $1.5 million in cash and short-term investments. Subsequently, the Company’s cash and short-term investments increased to approximately $13.2 million.
About Scorpius Holdings, Inc.
Scorpius Holdings, Inc. is a contract development and manufacturing organization dedicated to advancing biologic and cell therapy programs. The Company provides a wide range of analytical testing, process development, and manufacturing services to pharmaceutical and biotech companies at its cutting-edge facilities in the United States. With a skilled team and newly designed facilities, Scorpius is committed to fostering transparent collaboration and delivering high-quality biomanufacturing.
Contact Information
Media and Investor Relations Contact
David Waldman
+1 919 289 4017
ir@scorpiusbiologics.com
Frequently Asked Questions
What financial results did Scorpius Holdings report for Q2 2024?
Scorpius Holdings reported $0.8 million in revenue for Q2 2024, marking a 16% year-over-year increase.
How did Scorpius Holdings manage its operating expenses?
The Company successfully reduced its operating expenses by 25% compared to the same quarter last year.
What is the current state of Scorpius Holdings' project pipeline?
Scorpius' project pipeline has surpassed $100 million in weighted opportunities across the government and manufacturing sectors.
What was the net loss for Scorpius Holdings in Q2 2024?
The net loss attributable to Scorpius in Q2 2024 was approximately $8.9 million.
What are the future prospects for Scorpius Holdings?
The Company anticipates closing various opportunities by the end of the year and is optimistic about maintaining momentum in its strategic initiatives.
