NightHawk’s Scorpius BioManufacturing Subsidiary Commences Work on Preclinical Program for New Client
- Scorpius BioManufacturing subsidiary awarded a project worth over one million dollars for a preclinical program
- Potential for project value to exceed several million dollars over the next two years
- NightHawk's growing reputation in the industry and track record advancing early stage clinical programs
- Specialized analytical and process development laboratories in microbial fermentation highlighted
- Intent to expand the scope of the project for phase 1 clinical trials and beyond
- None.
Insights
The announcement by NightHawk Biosciences regarding the project award for its subsidiary, Scorpius BioManufacturing, represents a strategic win that could impact the company's revenue stream and market position. The initial project value exceeding one million dollars, with potential growth over the next two years, indicates a strong entry into a collaborative effort with a biotech company. This could signal to investors and industry observers that NightHawk is successfully leveraging its specialized capabilities in microbial fermentation—a niche but growing segment within biologics.
Given the competitive nature of the CDMO market, NightHawk's ability to secure such a project showcases its operational readiness and commitment to quality, which are critical factors for attracting and retaining clients. The mention of expanding the scope of the project as the client moves towards phase 1 clinical trials suggests a forward-looking strategy aimed at long-term engagement rather than a one-off project, which could provide sustained revenue and growth opportunities for NightHawk.
Scorpius BioManufacturing's expertise in microbial fermentation is particularly noteworthy, as this technology is essential for the production of various biologics, including vaccines, insulin and monoclonal antibodies. Microbial fermentation is a cost-effective and scalable method for biologic production, which can give NightHawk a competitive advantage in the biologics manufacturing sector. The project could enhance NightHawk's reputation as a leader in this specialized area, potentially attracting additional clients seeking expertise in microbial fermentation.
The focus on analytical and process development laboratories underscores the company's commitment to delivering high-quality services, which is a key differentiator in the CDMO landscape. This project may also serve as a proof of concept, demonstrating Scorpius' capabilities to other potential clients and thereby potentially driving further business development and growth for NightHawk Biosciences.
Analyzing the financial implications of the project award for NightHawk Biosciences, the initial project value of over one million dollars is a positive indicator for the company's near-term revenue. However, it is important to consider the project's contribution to the overall financial health of the company. Investors should evaluate the proportion of this project relative to NightHawk's total revenue and profit margins to understand its true financial impact.
Furthermore, the potential for the project's value to grow over the next two years could indicate a strengthening of NightHawk's financial position and an increased predictability in its revenue stream. The ability to expand the scope of the project as the client progresses through clinical trials also suggests a scalable business model that could lead to additional revenue without proportionally increasing costs. This scalability is a critical aspect of the CDMO business model and can significantly influence profit margins and investor sentiment.
Project reflects Scorpius’ versatility through its multi-functional biologics facility and expertise in microbial fermentation
DURHAM, N.C., Jan. 16, 2024 (GLOBE NEWSWIRE) -- NightHawk Biosciences (NYSE American: NHWK) (“NightHawk” or the “Company”), an integrated contract development and manufacturing organization (CDMO), today announced its Scorpius BioManufacturing subsidiary has been awarded a project to support a preclinical program for a U.S. based biotech company. The initial project value exceeds one million dollars, with the potential to exceed several million dollars over the next two years.
Jeff Wolf, CEO of NightHawk, commented, “We are pleased to have been awarded this competitive bid due to the versatility of our biologics facility, manufacturing readiness, and commitment to quality. This award reflects our growing reputation in the industry, as well as our track record advancing early stage clinical programs. A key element of this project is Scorpius’ specialized analytical and process development laboratories where the client benefits from our expertise in biologics and, in particular, microbial fermentation, which is garnering significant attention in the industry. Although the work outlined in this contract is anticipated to be completed in 2024, our intent is to expand the scope of the project as they prepare for phase 1 clinical trials and beyond.”
NightHawk Biosciences, Inc.
NightHawk Biosciences, through its Scorpius BioManufacturing subsidiary, 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 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.nighthawkbio.com or www.scorpiusbiologics.com, and also follow us on Twitter.
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 the potential to exceed several million dollars over the life of the project, completing the work outlined in the contract by 2024 and building a long-term relationship with the client in order to expand the scope of the project as they prepare for phase 1 clinical trials and beyond. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s ability to complete the work outlined in 2024 and to expand the scope of the project, the Company’s ability to generate future revenue from manufacturing contracts , the Company’s ability to continue to grow revenue, leverage fixed costs and achieve long-term profitability; the Company’s ability to create substantial shareholder value as a pure-play CDMO in an underserved marketplace; 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 successfully operate as a CDMO the ability to obtain regulatory approval 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 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 Contact
David Waldman
+1 919 289 4017
investorrelations@nighthawkbio.com
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