Scorpius Holdings Launches Scorpius Ventures to Support U.S. Biotech Innovation through Flexible Equity-Based Onshoring Model
Scorpius Holdings (NYSE American: SCPX) has launched Scorpius Ventures, a new business unit offering a hybrid fee-for-service and equity-based model to support emerging biotech companies with U.S. onshoring initiatives. The venture aligns with the BIOSECURE Act, aiming to strengthen U.S. biosecurity and manufacturing independence. Through this model, biotech partners can access Scorpius' cGMP manufacturing services and CMC expertise while sharing growth potential through equity arrangements. The initiative focuses on reducing financial barriers for partners while promoting domestic production and supply chain stability.
Scorpius Holdings (NYSE American: SCPX) ha lanciato Scorpius Ventures, una nuova unità commerciale che offre un modello ibrido basato su commissioni per servizi e partecipazioni per supportare le aziende biotech emergenti con iniziative di ripristino negli Stati Uniti. L'iniziativa è in linea con il BIOSECURE Act, che mira a rafforzare la bio-sicurezza e l'indipendenza manifatturiera degli Stati Uniti. Attraverso questo modello, i partner biotech possono accedere ai servizi di produzione cGMP e all'esperienza CMC di Scorpius, condividendo al contempo il potenziale di crescita attraverso accordi di partecipazione. L'iniziativa si concentra sulla riduzione delle barriere finanziarie per i partner, promuovendo al contempo la produzione domestica e la stabilità della catena di approvvigionamento.
Scorpius Holdings (NYSE American: SCPX) ha lanzado Scorpius Ventures, una nueva unidad de negocio que ofrece un modelo híbrido de tarifas por servicio y basado en la equidad para apoyar a las empresas de biotecnología emergentes con iniciativas de nacionalización en EE.UU. La aventura se alinea con la BIOSECURE Act, que tiene como objetivo fortalecer la bioseguridad y la independencia manufacturera en EE.UU. A través de este modelo, los socios de biotecnología pueden acceder a los servicios de fabricación cGMP y la experiencia CMC de Scorpius, compartiendo al mismo tiempo el potencial de crecimiento a través de acuerdos de participación. La iniciativa se centra en reducir las barreras financieras para los socios mientras promueve la producción nacional y la estabilidad de la cadena de suministro.
스콜피우스 홀딩스 (NYSE American: SCPX)는 스콜피우스 벤처스를 출범하였습니다. 이는 미국 내 재배치 이니셔티브를 지원하기 위해 서비스 요금 및 지분 기반 모델을 제공하는 새로운 비즈니스 유닛입니다. 이 벤처는 BIOSECURE Act와 일치하며, 미국의 생물 보안 및 제조 독립성을 강화하는 것을 목표로 합니다. 이 모델을 통해 생명공학 파트너들은 스콜피우스의 cGMP 제조 서비스 및 CMC 전문 지식에 접근할 수 있으며, 지분 계약을 통해 성장 잠재력을 공유할 수 있습니다. 이 이니셔티브는 파트너를 위한 재정 장벽을 줄이고 국내 생산 및 공급망 안정성을 촉진하는 데 중점을 두고 있습니다.
Scorpius Holdings (NYSE American: SCPX) a lancé Scorpius Ventures, une nouvelle unité commerciale offrant un modèle hybride de frais pour services et de participation au capital pour soutenir les entreprises biotechnologiques émergentes avec des initiatives de rapatriement aux États-Unis. Ce projet est en accord avec le BIOSECURE Act, visant à renforcer la bio-sécurité et l'indépendance manufacturière des États-Unis. Grâce à ce modèle, les partenaires biotechnologiques peuvent accéder aux services de fabrication cGMP et à l'expertise CMC de Scorpius tout en partageant un potentiel de croissance par le biais d'accords de participation. L'initiative se concentre sur la réduction des barrières financières pour les partenaires tout en promouvant la production nationale et la stabilité de la chaîne d'approvisionnement.
Scorpius Holdings (NYSE American: SCPX) hat Scorpius Ventures ins Leben gerufen, eine neue Geschäftseinheit, die ein hybrides Gebühren- und Eigenkapitalmodell anbietet, um aufstrebende Biotechnologieunternehmen mit Initiativen zur Verlagerung in die USA zu unterstützen. Das Unternehmen steht im Einklang mit dem BIOSECURE Act, dessen Ziel es ist, die biologische Sicherheit und die Unabhängigkeit der Herstellung in den USA zu stärken. Durch dieses Modell können Biotech-Partner auf die cGMP-Herstellungsdienstleistungen und die CMC-Expertise von Scorpius zugreifen und gleichzeitig Potenziale für Wachstum durch Beteiligungsvereinbarungen teilen. Die Initiative konzentriert sich darauf, finanzielle Barrieren für Partner zu verringern und gleichzeitig die inländische Produktion und die Stabilität der Lieferkette zu fördern.
- Launch of new revenue stream through Scorpius Ventures business unit
- Potential for equity appreciation through stakes in client companies
- Alignment with BIOSECURE Act potentially positions for government contracts
- Diversification of business model beyond traditional CDMO services
- Equity-based model introduces additional investment risk
- Taking equity instead of full cash payment may impact short-term cash flow
Insights
The launch of Scorpius Ventures represents a strategic pivot in the CDMO business model, combining traditional fee-for-service with equity investments. This innovative approach addresses two critical market needs: reducing capital barriers for emerging biotech companies and supporting domestic biosecurity initiatives through onshoring.
The equity-based model creates potential for multiple revenue streams: immediate service fees plus future equity appreciation. This could significantly enhance Scorpius's long-term value proposition, though it also increases exposure to biotech sector risks. The alignment with the BIOSECURE Act positions the company favorably for potential government contracts and partnerships.
The strategy particularly targets the growing demand for U.S.-based manufacturing capabilities, capitalizing on both regulatory trends and national security concerns. This could lead to increased market share in the expanding domestic CDMO market, estimated at
This business model innovation addresses a critical gap in the biotech ecosystem. By offering a hybrid fee-equity structure, Scorpius is effectively becoming a strategic partner rather than just a service provider. This positions them to capture value from successful client companies while reducing upfront costs for emerging biotechs.
The focus on CMC expertise and manufacturing support is particularly valuable given the complex regulatory requirements for biologics. The model could accelerate development timelines and improve success rates for client companies, while building a portfolio of equity positions in promising biotech ventures.
New business unit offers services for promising biotech companies through combined fee-for-service and equity-based model, fostering partnerships that align with BIOSECURE Act goals to onshore and strengthen U.S.-based biosecurity and production capacity
DURHAM, N.C., Nov. 19, 2024 (GLOBE NEWSWIRE) -- Scorpius Holdings, Inc (NYSE American: SCPX) (“Scorpius” or “the Company”), an integrated contract development and manufacturing organization ("CDMO"), today announced the launch of Scorpius Ventures, a new business unit designed to support emerging biotech companies with a flexible American onshoring model. By combining service fees with an equity stake, Scorpius Ventures lowers financial barriers for its partners to onshore production of their biologics, creating a mutually beneficial pathway to accelerate biotech advancements.
Scorpius Ventures’ hybrid model offers capital-efficient access to its cGMP manufacturing services through in-kind equity investment, sharing in the growth potential of its clients.
“At Scorpius, we’re committed to enabling biotech innovation by aiming to reduce financial obstacles and creating true partnerships,” said Jeff Wolf, CEO of Scorpius Holdings. “Through Scorpius Ventures, we’re providing biotech companies the resources they need to advance critical therapies through a hybrid fee and equity model, thereby, fostering shared success while advancing our mission to strengthen U.S. biosecurity and manufacturing independence.”
This new venture model aligns with the BIOSECURE Act, supporting onshore production of essential biological substances to bolster national security and economic resilience. Scorpius Ventures prioritizes U.S.-based manufacturing, in an effort to enhance supply chain stability and promote domestic job growth.
Biotech partners benefit from Scorpius’ industry-leading CMC (Chemistry, Manufacturing, and Controls) and manufacturing expertise, ensuring streamlined development, reduced risks, and clear communication regarding milestones and timelines. By combining Scorpius’ operational support with a fee-and-equity model, clients can leverage the Company’s manufacturing strengths to aid in their own fundraising efforts.
Scorpius Ventures represents a bold step in onshoring development of American-made biologics, advancing BIOSECURE Act goals while reshaping how emerging biotech companies access capital and manufacturing.
Scorpius Holdings, Inc.
Scorpius Holdings, Inc. is an integrated contract development and manufacturing organization (CDMO) focused on rapidly advancing biologic 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 Scorpius Ventures enabling biotech innovation by reducing financial obstacles and creating true partnerships; Scorpius fostering shared success while advancing its mission to strengthen U.S. biosecurity and manufacturing independence; Scorpius Ventures enhancing supply chain stability and promoting domestic job growth; clients leveraging the Company’s manufacturing strengths to aid in their own fundraising effort Important factors that could cause actual results to differ materially from current expectations include, among others, the ability of the Company to derive the anticipated benefits from the flexible equity based manufacturing model; the Company’s ability to expand its large molecule biomanufacturing CDMO services, attract new customers, profit from its pipeline and continue to grow revenue; the ability to capture a meaningful market share; the ability to generate meaningful cash flow and become cash flow positive; 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, 2023, 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
ir@scorpiusbiologics.com
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