Scinai reports Q1 2026 net income of $3.6 million
Scinai Immunotherapeutics Ltd reported a net income of $3.6 million for Q1 2026, reversing a net loss of $1.6 million in the prior year, driven by a $6.2 million bargain purchase gain from the Recipharm Israel acquisition. Revenues were $489 thousand, and the company expanded its CDMO platform with a new facility in Yavne, Israel.
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Scinai Immunotherapeutics Ltd reported a net income of $3.6 million for the first quarter ended March 31, 2026, compared to a net loss of $1.6 million in the prior-year period, primarily due to a non-cash bargain purchase gain of $6.2 million. The company completed the acquisition of Recipharm Israel, expanding its contract development and manufacturing organization (CDMO) platform through the addition of a second manufacturing site in Yavne, Israel. This strategic move established a commercial collaboration with Recipharm AB and added approximately $6.2 million of net identifiable assets to the balance sheet.
Revenues for the quarter were $489 thousand, compared to $586 thousand in the prior-year period, with approximately $200 thousand generated by the Yavne facility post-acquisition. Cost of revenues increased to $1.6 million from $0.4 million, reflecting the growth of CDMO operations and a revised cost allocation methodology that reclassified certain employee and facility costs from research and development to cost of revenues. Consequently, research and development expenses decreased to $0.6 million from $1.3 million, a change attributed to the accounting methodology rather than a reduction in R&D activities.
Marketing, general and administrative expenses rose to $0.7 million from $0.5 million, driven by the expansion of operations following the Recipharm Israel acquisition. The company reported an operating loss of $2.5 million, compared to $1.6 million in the prior year, due to increased expenses from CDMO expansion and changes in cost allocation. Cash, cash equivalents and restricted cash totaled $3.1 million as of March 31, 2026, compared to $1.8 million as of December 31, 2025, while total assets increased to $17.6 million and shareholders' equity rose to $11.8 million.
Financial Results
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenues | $489 thousand | $586 thousand |
| Cost of revenues | $1.6 million | $0.4 million |
| Research and development expenses | $0.6 million | $1.3 million |
| Marketing, general and administrative expenses | $0.7 million | $0.5 million |
| Operating loss | $2.5 million | $1.6 million |
| Net income | $3.6 million | $(1.6) million |
Operational Update
Scinai consolidated its CDMO activities under Scinai Biopharma Services Ltd following the acquisition. The combined platform now offers capabilities spanning biologics, sterile injectable products and small-molecule API development and manufacturing services. The company advanced multiple non-dilutive funding initiatives, including Polish FENG grant applications for its PC111 and systemic IL-17 bispecific NanoAb programs, and an Israel Innovation Authority grant application for the systemic IL-17 bispecific NanoAb program. Management expects several grant decisions during the second half of 2026.
The company prioritized the development of a systemic IL-17 bispecific antibody as the lead validation program for its NanoAb platform. Scinai continues its collaboration with the Max Planck Society and University Medical Center Göttingen and is engaged in discussions regarding the expansion and amendment of existing license arrangements.
How does Scinai plan to scale revenue generation from the new Yavne facility to offset the increased cost of revenues?
What are the specific milestones or timelines expected for the pending non-dilutive funding decisions in the second half of 2026?
Will the expanded CDMO platform attract new commercial partnerships beyond the existing collaboration with Recipharm AB?
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