Scorpius Holdings Estimates Greater than 375% Sequential Increase in Revenue for the Fourth Quarter of 2023 Compared to the Third Quarter of 2023
07 Março 2024 - 10:30AM
Scorpius Holdings, Inc.,
(“Scorpius”) (NYSE American:
SCPX), an integrated contract development and
manufacturing organization (CDMO), today reported preliminary,
unaudited financial results for the fourth quarter of 2023.
Jeff Wolf, CEO of Scorpius, stated, “We are
firing on all cylinders and currently estimate our preliminary,
unaudited revenue for the fourth quarter of 2023 to be in the range
of $3.4 million to $3.6 million, which would represent a greater
than 375% sequential increase over the third quarter of 2023. Our
contract bookings of over $20 million in 2023 and strong business
development efforts in the first quarter of 2024 have produced a
record current backlog of $9.3 million. This backlog, along with a
strong pipeline of new opportunities, gives us tremendous
confidence in our growth trajectory for 2024. In addition, I am
pleased to report that we estimate our preliminary, unaudited
operating losses for the fourth quarter declined by over $3.3
million, or approximately 30%, compared to the third quarter of
2023, as almost all of our upfront investments in the new facility
are now behind us. Most notably, we have built a highly scalable
operation, and as revenue continues to grow, we expect to become
cash flow positive by early 2025 due to the high incremental
margins in our business.”
Mr. Wolf continued, “We are witnessing
increasing demand for our state-of-the-art large molecule CDMO
services, which has been compounded by the significant shortage of
dedicated clinical-scale manufacturing capacity within the
industry. Moreover, the large molecule drug substance CDMO market
is projected to grow from over $10 billion in 2023 to $21 billion
by 20301, highlighting the need for additional industry capacity.
Our capabilities, seamless execution, and flexibility to meet the
needs of our customers has allowed us to attract premier biopharma
and biotech companies, as well as leading research institutions. We
typically onboard these customers at the early stages of clinical
development, which provides us the opportunity to expand our scope
of work as their therapies progress through clinical trials and,
ultimately, into full-scale commercial production. Our unique
40,000+ sq. ft. campus, with investments totaling over $65 million
to date, provides us sufficient capacity to grow our throughput
with minimal additional capex requirements, which we believe is the
key to maximizing profits and returns for our shareholders.”
Based upon a preliminary, unaudited review, the
Company currently estimates revenue in the range of $3.4 million to
$3.6 million for the fourth quarter of 2023. The increase in
revenue reflects the completion of contract milestones primarily in
the microbial facility and process development work. Additionally,
the Company estimates that our operating loss will decline by over
$3.3 million, or approximately 30%, as a result of primary
completion of qualification and validation processes. The Company
expects to report its complete 2023 audited financial results on or
before March 28, 2024.
The estimated revenue and operating loss results
for 2023 are preliminary and unaudited and are subject to
completion of the Company’s financial closing procedures. The
Company’s independent registered public accounting firm has not
conducted an audit or review of and does not express an opinion or
any other form of assurance with respect to, the preliminary
unaudited revenue results. It is possible that the Company or its
independent registered public accounting firm may identify items
that require the Company to make adjustments to the preliminary
estimates of revenue and/or operating loss set forth in the press
release and those changes could be material. Accordingly, undue
reliance should not be placed on the preliminary estimates.
Scorpius Holdings, Inc.
Scorpius Holdings Inc. is an integrated large
molecule 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 preliminary, unaudited revenue for the fourth
quarter of 2023 being in the range of $3.4 million to $3.6 million,
representing a greater than 375% sequential increase over the third
quarter of 2023, operating losses for the fourth quarter declining
by over $3.3 million, having tremendous confidence in our growth
trajectory for 2024, preliminary, unaudited operating losses for
the fourth quarter declined by over $3.3 million, or approximately
30% compared to the third quarter of 2023; our expectation to
become cash flow positive by early 2025 due to the high incremental
margins in the Company’s business, the large molecule drug
substance CDMO market being projected to grow from over $10 billion
in 2023 to $21 billion by 2030 highlighting the need for additional
industry capacity, expand the Company’s scope of work as our
customers’ therapies progress through clinical trials and,
ultimately, into full-scale commercial production, the Company’s
40,000+ sq. ft. campus providing it with sufficient capacity to
grow its throughput with minimal capex requirements, such capacity
being the key to maximizing profits and returns for the Company’s
shareholders and reporting the Company’s complete 2023 audited
financial results on or before March 28, 2024. There can be no
assurance that the Company’s actual full-year 2023 financial and
operating results will not differ, perhaps substantially, from the
preliminary financial and operating results and expectations
contained in this press release. In addition, the Company has not
completed its fourth quarter and full-year 2023 closing and review
process, and the final results for the full-year 2023 may differ,
perhaps substantially, from the statements made in this press
release. During the course of preparing the Company’s financial
statements and during the review process, management may identify
items that would require adjustments that may be material to the
amounts described in this press release. In addition, 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 and
continue to grow revenue; 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, 2022,
subsequent quarterly reports on Form 10-Qs and any other filings
the Company makes with the SEC. The information in this press
release is provided only as of the date presented, and the Company
undertakes no obligation to update any forward-looking statements
contained in this press release 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
1 SkyQuest Large Molecule Industry Forecast, February 2024
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