Scinai Immunotherapeutics Ltd. (NASDAQ: SCNI); (“Scinai” or the “Company”), a biopharmaceutical company developing inflammation and immunology therapeutics and operating a growing CDMO business, today announced the completion of a strategic corporate reorganization establishing a dedicated CDMO platform alongside a streamlined R&D organization.
Building on its previously announced acquisition of Recipharm Israel Ltd. and related commercial collaboration with Recipharm, this reorganization represents a structural transformation of the Company’s operating model, designed to enhance capital efficiency, improve operational focus and position each business to independently create and capture value.
Formal Separation of CDMO and R&D Activities
Following the Company’s previously announced acquisition of Recipharm Israel Ltd. in February 2026, which included a small-molecule drug development and manufacturing site in Yavne, the acquired entity was renamed Scinai Biopharma Services Ltd.
As part of a corporate reorganization designed to consolidate CDMO activities, the Company transferred all CDMO-related operations, including employees, infrastructure, manufacturing facilities, customer contracts and associated business activities, into this entity, establishing Scinai Biopharma Services Ltd. as the Company’s dedicated CDMO subsidiary.
Scinai Biopharma Services now operates as a fully integrated, privately held CDMO platform, wholly owned by Scinai Immunotherapeutics.
The reorganization was undertaken to position each part of the business more clearly for its respective stakeholders. This structure establishes a clear separation between:
- Scinai Biopharma Services – a dedicated, execution-focused CDMO business
- Scinai Immunotherapeutics – a streamlined R&D organization focused on advancing innovative therapeutics.
A Scalable CDMO Platform Built on Three Complementary Pillars
The Company’s CDMO platform is built on three complementary pillars that together create a scalable and differentiated development and manufacturing offering.
First, the Company’s Jerusalem site provides biologics development, analytical services and aseptic manufacturing capabilities.
Second, the acquisition of Recipharm Israel adds the Yavne site, expanding the platform into small-molecule development and API manufacturing, broadening the Company’s technical scope and enabling access to a wider range of customer programs.
Third, through its commercial collaboration with Recipharm, the Company has access to external manufacturing capabilities that function as an extension of its platform. This includes structured subcontracting arrangements and preferential access to Recipharm’s global network, enabling Scinai to support programs beyond its internal capacity.
Together, these three pillars create an integrated platform that supports customer programs from early-stage development through late-stage clinical and commercial manufacturing.
Importantly, as part of the reorganization, the economic benefits of the collaboration with Recipharm are now fully integrated into Scinai Biopharma Services. These include referral-based royalties on downstream manufacturing and the ability to advance customer programs through early-stage development while continuing to participate in their downstream economics as they “graduate” to late-stage and commercial production.
In addition, Scinai Biopharma Services will manage the ongoing relationship with Recipharm, including subcontracting arrangements, reinforcing the subsidiary’s role as the central operating platform for the Company’s CDMO activities.
This integrated model positions Scinai Biopharma Services as a scalable and differentiated CDMO platform, combining internal capabilities with extended external capacity to support customers across the full development lifecycle while capturing value at multiple stages.
Lean R&D Structure and Capital Efficiency
Following the transfer of CDMO-related assets and personnel, Scinai Immunotherapeutics now operates with a significantly leaner R&D structure.
This enables:
- Reduced overhead and improved cost discipline
- Focus on high-value development programs
- More efficient capital allocation aligned with defined priorities
Non-core infrastructure and operational functions have been repositioned within the CDMO business, where they directly support revenue-generating activities.
2026 Strategic Priorities and Growth Targets
Building on this new structure, the Company’s 2026 objectives include:
CDMO Platform
- Scaling operations across both sites and expanding the customer base in the U.S. and Europe
- Leveraging the Recipharm collaboration to support programs beyond early-stage development
- Targeting approximately $5 million in CDMO revenues in 2026
R&D
- Advancing PC111 as the Company’s lead value-driving program
- Progressing the IL-17 × undisclosed second target bi-specific program as a key validation of the NanoAbs platform
- Continuing to advance the pipeline through capital-efficient strategies, with a focus on non-dilutive funding to support early-stage development
Management Commentary
Amir Reichman, Chief Executive Officer of Scinai, commented:
“This reorganization represents a deliberate transformation of how we operate and how we create value.
We undertook this restructuring with a clear objective: to position each part of the business more effectively for its respective stakeholders.
On the CDMO side, Scinai Biopharma Services is now a focused, customer-facing organization with a scalable operating model. On the R&D side, Scinai Immunotherapeutics is a lean, capital-efficient biotechnology company, better positioned to engage with investors, strategic partners and potential future transactions.
By consolidating our CDMO activities into a dedicated platform and separating them from our R&D operations, we are aligning our structure with our strategy. This allows us to scale the CDMO business as a standalone growth engine while advancing our pipeline in a disciplined and capital-efficient manner.
Together with our collaboration with Recipharm, we are now positioned to support customer programs across the full development lifecycle while capturing value at multiple stages.”
