EXCLUSIVE: Healthcare Service Provider Scorpius Projects Over 375% Sequential Increase In Q4 Revenue

Zinger Key Points
  • Scorpius Holdings reports a sequential reduction in Q4 2023 operating loss by over $3.3 million.
  • The company expects to become cash flow positive by early 2025 due to the high incremental margins in business.

Thursday, Scorpius Holdings Inc SCPX released preliminary financial results for the fourth quarter of 2023.

Scorpius Holdings is an integrated large molecule contract development and manufacturing organization (CDMO) focused on advancing biologic and cell therapy programs.

Scorpius offers analytical testing, process development, and manufacturing services to pharmaceutical and biotech companies.

The company anticipates fourth-quarter 2023 revenue of $3.4 million-$3.6 million, a 375% sequential increase reflecting the completion of contract milestones primarily in the microbial facility and process development work. 

Additionally, the company projects that its operating loss will decline by over $3.3 million, or approximately 30%, due to the primary completion of qualification and validation processes.

The analyst consensus estimate stands at $1.9 million for sales and a GAAP EPS loss of $(0.22) as per data from Benzinga Pro.

The company says contract bookings of over $20 million last year and business development efforts in the first quarter have produced a current backlog of $9.3 million.

Jeff Wolf, CEO of Scorpius, stated, “Moreover, the large molecule drug substance CDMO market is projected to grow from over $10 billion to $21 billion by 2030, highlighting the need for additional industry capacity.”

The company expects to become cash flow positive by early 2025 due to the high incremental margins in business.

Mr. Wolf continued, “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.”

The company expects to report its 2023 audited financial results on or before March 28, 2024. 

Price Action: SCPX shares closed at $0.31 on Wednesday.

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