TLDR
- SCNI falls 7.71% as Q1 operating loss widens despite net income.
- Scinai posts $3.6M net income on non-cash acquisition gain.
- Recipharm Israel deal expands Scinai’s CDMO manufacturing base.
- Q1 revenue slips to $489K as operating loss rises to $2.5M.
- Scinai advances grant efforts for PC111 and NanoAb programs.
Scinai Immunotherapeutics reported higher operating costs in the first quarter, while SCNI stock ended lower after volatile trading. The company posted net income, but its operating loss widened as CDMO expansion raised expenses. Meanwhile, management continued to prioritize grants, partnerships, and its immunology pipeline.
SCNI Stock Slips After Volatile Session
Scinai Immunotherapeutics (SCNI) closed at $0.3270, down 7.71%, after a weak regular session. However, the stock edged higher after hours to $0.3280, up 0.31%. The move showed slight stabilization after pressure during the day.
Scinai Immunotherapeutics Ltd., SCNI
The stock reaction followed Scinai’s first-quarter 2026 financial report and corporate update. The company reported progress in its CDMO business and therapeutic programs. However, higher costs weighed on operating results despite a reported net profit.
Scinai combines immunology drug development with a revenue-generating CDMO subsidiary. Its business now includes Scinai Biopharma Services, which supports development and manufacturing work. Therefore, the company continues to balance research spending with service-based revenue growth.
Q1 Operating Loss Widens Despite Net Income
Scinai reported first-quarter revenue of $489,000, compared with $586,000 a year earlier. Revenue included about $200,000 from the Yavne facility after the Recipharm Israel acquisition. Even so, total revenue declined from the prior-year period.
Cost of revenue rose to $1.6 million from $400,000 in the same quarter last year. The increase came from expanded CDMO activity and a revised cost allocation method. As a result, some employee and facility costs moved from research expenses into cost of revenue.
Research and development expenses fell to $600,000 from $1.3 million a year earlier. The company said the decline reflected accounting classification changes rather than reduced research activity. Operating loss increased to $2.5 million from $1.6 million.
Scinai reported net income of $3.6 million, compared with a net loss of $1.6 million last year. The gain mainly came from a non-cash bargain purchase gain linked to Recipharm Israel. Without that gain, operating costs still showed pressure on the business.
Recipharm Deal Expands CDMO Platform
Scinai completed the acquisition of Recipharm Israel during the quarter. The deal added a second manufacturing site in Yavne, Israel. It also created a strategic commercial collaboration with global CDMO company Recipharm AB.
The company consolidated its CDMO assets and employees under Scinai Biopharma Services. The combined platform now includes facilities in Jerusalem and Yavne. They support biologics, sterile injectable products, and small-molecule API services.
The acquisition added about $6.2 million of net identifiable assets to Scinai’s balance sheet. That total included about $2.8 million in cash and $3.6 million in manufacturing infrastructure. Total assets rose to $17.6 million by March 31, 2026.
Cash, cash equivalents, and restricted cash reached $3.1 million at quarter end. That compared with $1.8 million at the end of 2025. Shareholders’ equity also increased to $11.8 million after the transaction.
Scinai Advances Grants and Pipeline Work
Scinai continued to pursue non-dilutive funding for its research and CDMO expansion plans. The company advanced multiple grant applications during the quarter and subsequent period. Management expects several grant decisions during the second half of 2026.
The company’s PC111 program and systemic IL-17 bispecific NanoAb program advanced under separate Polish FENG grant reviews. Its local intradermal IL-17 NanoAb program also reached the final interview stage. A professional examiner meeting is scheduled for June 16, 2026.
Scinai also entered formal review for an Israel Innovation Authority grant tied to the systemic IL-17 NanoAb program. In addition, it plans another application for GMP lyophilization capabilities. These efforts support growth while limiting equity dilution.
PC111 remains focused on severe dermatological conditions, including pemphigus and SJS/TEN. Meanwhile, Scinai prioritized systemic IL-17 bispecific antibody development for its NanoAb platform. The company also continues collaboration with Max Planck Society and University Medical Center Göttingen.
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