Scinai receives $246,000 grant to expand biotech manufacturing

JERUSALEM - Scinai Immunotherapeutics Ltd. (NASDAQ:SCNI), a small-cap biotech company with a market capitalization of $2.01 million, has secured a non-dilutive grant of approximately NIS 809,000 ($246,000) from the Israel Innovation Authority (IIA) to enhance its small-batch sterile manufacturing capabilities, the company announced Monday. According to InvestingPro data, the company has shown impressive revenue growth of over 300% in the last twelve months, though it faces challenges with cash burn rates.

The grant will fund about 66% of a NIS 1.23 million ($373,000) project to acquire and install an advanced fill-and-finish system at Scinai’s contract development and manufacturing organization (CDMO) business unit, Scinai Bioservices. This investment comes as the company operates with a current ratio of 0.71, indicating potential liquidity constraints. InvestingPro analysis reveals 12 additional key insights about Scinai’s financial health and market position.

The new system aims to address a significant gap in Israel’s biotech sector, where early-stage companies often lack access to local, flexible, small-scale GMP manufacturing facilities. The equipment will accommodate various packaging formats with minimal reconfiguration, enabling rapid batch turnaround and efficient switching between manufacturing campaigns.

"This grant is a strong vote of confidence in Scinai Bioservices’ growing role as a cornerstone of Israel’s biopharma manufacturing ecosystem," said Amir Reichman, CEO of Scinai, according to the press release.

The Jerusalem-based cGMP facility provides manufacturing and development support to biotech companies in Israel and internationally. The company states the planned expansion will strengthen its ability to provide small-batch, end-to-end CDMO services compliant with EMA and FDA standards.

Installation and qualification of the new filling system are expected in the first quarter of 2026, with commercial operation planned for the second quarter of 2026.

In addition to its CDMO operations, Scinai maintains a research and development business unit focused on developing biological drug candidates for inflammatory and immunological diseases, including an intradermal NanoAb targeting IL-17 A and F for plaque psoriasis treatment. While the company’s gross profit margins remain challenging at -147%, InvestingPro’s Fair Value analysis suggests the stock may be currently undervalued, presenting potential opportunities for investors interested in the biotech sector.

The information in this article is based on a company press release statement.

In other recent news, Scinai Immunotherapeutics Ltd. has reported significant advancements in the development of its experimental antibody treatment for serious skin conditions. A peer-reviewed article published in the Journal of Dermatological Treatment highlights the disease-modifying potential of Scinai’s PC111, a first-in-class human anti-Fas Ligand monoclonal antibody. The research confirms that PC111 can prevent blister formation in various models of pemphigus, a rare autoimmune skin disorder. Additionally, the study introduces new data from a humanized mouse model where PC111 significantly reduced disease activity. The publication, authored by Dr. Roberta Lotti and colleagues, also validates PC111’s potential as a treatment for Stevens-Johnson syndrome/toxic epidermal necrolysis (SJS/TEN). This development builds on previous award-winning research, reinforcing the antibody’s ability to target soluble Fas Ligand, a key factor in skin cell damage. These recent developments underscore the promising future of Scinai’s treatment options for challenging skin diseases.

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