Jerusalem, Israel, October 13, 2026
Scinai Immunotherapeutics Ltd. has announced a definitive agreement through its wholly owned subsidiary, Scinai Biopharma Services Ltd., to provide development and clinical manufacturing services for an investigational oncology product developed by a U.S.-based, Nasdaq-listed biopharmaceutical company. The agreement includes approximately $5.1 million in committed base service fees, subject to performance and the contract’s terms, including applicable termination rights. The new contract significantly expands Scinai’s contract development and manufacturing organization (CDMO) business, increasing its committed customer orders to approximately $7.6 million across its operations in Jerusalem and Yavne, Israel. This represents an increase of approximately 300% from $1.9 million at the end of 2025. The project includes chemistry, manufacturing and controls (CMC) development, manufacturing readiness, investigational new drug (IND)-enabling activities, clinical manufacturing and stability testing. The agreement is expected to contribute to revenue during 2026 and 2027 as contractual services are performed, while strengthening Scinai’s position as a development and manufacturing partner for pharmaceutical and biotechnology companies.
$5.1 Million Contract Expands Oncology Manufacturing
The new agreement builds on an existing customer engagement and covers an integrated program supporting the development of an investigational cancer treatment. CMC development and manufacturing readiness are essential components of pharmaceutical development because they help establish how a drug substance and drug product can be consistently produced, tested and controlled. Under the agreement, Scinai will provide process development, analytical development, manufacturing preparation, IND-enabling support and clinical manufacturing services. The scope also includes stability testing and development of a prefilled-syringe presentation. These activities are intended to support the customer’s development program as it progresses toward clinical manufacturing. The contracted services are expected to generate revenue as the relevant performance obligations are satisfied, rather than the entire contract value being recognized immediately. Advance and milestone payments associated with the committed work are expected to support Scinai’s cash flow and working capital during project execution. The agreement provides greater visibility into the company’s anticipated manufacturing workload, particularly for 2027, although actual revenue and payment timing will depend on project progress, contractual milestones and applicable accounting requirements.
Potential $5.85 Million Expansion Remains Uncommitted
In addition to the initial contract, Scinai disclosed the possibility of approximately $5.85 million in additional clinical manufacturing service fees for activities contemplated from late 2027 through the first half of 2028. This potential expansion could extend the customer relationship and increase demand for the company’s manufacturing capabilities. However, the additional work remains uncommitted and is subject to final scope and pricing, written authorization, available manufacturing capacity, and the customer’s clinical development and regulatory progress. The indicative value excludes certain activities, including scale-up, manufacturing-suite transition and qualification, and the first clinical batch in the new configuration, for which pricing has not yet been established. Consequently, the potential $5.85 million should not be included in the existing $5.1 million commitment or the reported $7.6 million in committed customer orders. Scinai also identified a possible longer-term opportunity to support commercial manufacturing if the customer’s product advances successfully through clinical development and regulatory review. No commercial manufacturing volumes or related revenues have been committed. This distinction is important when assessing the contract’s potential financial contribution and the company’s future growth prospects.
Advertisement
CDMO Growth Strengthens Biopharmaceutical Services
Scinai operates a CDMO business alongside its immunology-focused therapeutic development activities. Through Scinai Biopharma Services, the company provides development and manufacturing services to biotechnology and pharmaceutical customers at facilities in Jerusalem and Yavne, Israel. Its service capabilities support programs at different stages of drug development, helping customers progress from process and analytical development toward clinical supply. The latest agreement reinforces Scinai’s strategy of growing its contracted service business, increasing facility utilization and converting customer commitments into operating revenue. Management stated that the expanded relationship provides improved visibility into the company’s 2027 workload and creates opportunities for additional clinical and potentially commercial manufacturing. Nevertheless, the financial impact will depend on successful execution, customer requirements, manufacturing performance and the achievement of relevant milestones. Technical challenges, regulatory delays, changes in development plans or contract termination could affect the expected schedule and revenue. The announcement therefore represents a meaningful commercial milestone, while the potential expansion remains dependent on future decisions and development progress.
The agreement highlights the importance of specialized pharmaceutical development and clinical manufacturing services in advancing investigational oncology medicines. With $5.1 million in committed service fees and approximately $7.6 million in total committed customer orders, Scinai is expanding its contracted CDMO business and strengthening its manufacturing pipeline. Successful execution could create opportunities for longer-term customer collaboration, although additional clinical and commercial manufacturing remains subject to future authorization and development outcomes.
Source: Scinai Immunotherapeutics press release
