JERUSALEM, April 6, 2026 /PRNewswire/ -- Scinai Immunotherapeutics Ltd. (NASDAQ:SCNI); ("Scinai" or the "Company"), a biopharmaceutical company developing inflammation and immunology therapeutics and operating a growing CDMO business, today announced the completion of a strategic corporate reorganization establishing a dedicated CDMO platform alongside a streamlined R&D organization.

Building on its previously announced acquisition of Recipharm Israel Ltd. and related commercial collaboration with Recipharm, this reorganization represents a structural transformation of the Company's operating model, designed to enhance capital efficiency, improve operational focus and position each business to independently create and capture value.

Formal Separation of CDMO and R&D Activities

Following the Company's previously announced acquisition of Recipharm Israel Ltd. in February 2026, which included a small-molecule drug development and manufacturing site in Yavne, the acquired entity was renamed Scinai Biopharma Services Ltd.

As part of a corporate reorganization designed to consolidate CDMO activities, the Company transferred all CDMO-related operations, including employees, infrastructure, manufacturing facilities, customer contracts and associated business activities, into this entity, establishing Scinai Biopharma Services Ltd. as the Company's dedicated CDMO subsidiary.

Scinai Biopharma Services now operates as a fully integrated, privately held CDMO platform, wholly owned by Scinai Immunotherapeutics.

The reorganization was undertaken to position each part of the business more clearly for its respective stakeholders. This structure establishes a clear separation between:

Scinai Biopharma Services – a dedicated, execution-focused CDMO business
Scinai Immunotherapeutics – a streamlined R&D organization focused on advancing innovative therapeutics.

A Scalable CDMO Platform Built on Three Complementary Pillars

The Company's CDMO platform is built on three complementary pillars that together create a scalable and differentiated development and manufacturing offering.

First, the Company's Jerusalem site provides biologics development, analytical services and aseptic manufacturing capabilities.

Second, the acquisition of Recipharm Israel adds the Yavne site, expanding the platform into small-molecule development and API manufacturing, broadening the Company's technical scope and enabling access to a wider range of customer programs.

Third, through its commercial collaboration with Recipharm, the Company has access to external manufacturing capabilities that function as an extension of its platform. This includes structured subcontracting arrangements and preferential access to Recipharm's global network, enabling Scinai to support programs beyond its internal capacity.

Together, these three pillars create an integrated platform that supports customer programs from early-stage development through late-stage clinical and commercial manufacturing.

Importantly, as part of the reorganization, the economic benefits of the collaboration with Recipharm are now fully integrated into Scinai Biopharma Services. These include referral-based royalties on downstream manufacturing and the ability to advance customer programs through early-stage development while continuing to participate in their downstream economics as they "graduate" to late-stage and commercial production.

In addition, Scinai Biopharma Services will manage the ongoing relationship with Recipharm, including subcontracting arrangements, reinforcing the subsidiary's role as the central operating platform for the Company's CDMO activities.

This integrated model positions Scinai Biopharma Services as a scalable and differentiated CDMO platform, combining internal capabilities with extended external capacity to support customers across the full development lifecycle while capturing value at multiple stages.

Lean R&D Structure and Capital Efficiency

Following the transfer of CDMO-related assets and personnel, Scinai Immunotherapeutics now operates with a significantly leaner R&D structure.

This enables:

Reduced overhead and improved cost discipline
Focus on high-value development programs
More efficient capital allocation aligned with defined priorities

Non-core infrastructure and operational functions have been repositioned within the CDMO business, where they directly support revenue-generating activities.

2026 Strategic Priorities and Growth Targets

Building on this new structure, the Company's 2026 objectives include:

CDMO Platform

Scaling operations across both sites and expanding the customer base in the U.S. and Europe
Leveraging the Recipharm collaboration to support programs beyond early-stage development
Targeting approximately $5 million in CDMO revenues in 2026

R&D

Advancing PC111 as the Company's lead value-driving program
Progressing the IL-17 × undisclosed second target bi-specific program as a key validation of the NanoAbs platform
Continuing to advance the pipeline through capital-efficient strategies, with a focus on non-dilutive funding to support early-stage development

Management Commentary

Amir Reichman, Chief Executive Officer of Scinai, commented:

"This reorganization represents a deliberate transformation of how we operate and how we create value.

We undertook this restructuring with a clear objective: to position each part of the business more effectively for its respective stakeholders.

On the CDMO side, Scinai Biopharma Services is now a focused, customer-facing organization with a scalable operating model. On the R&D side, Scinai Immunotherapeutics is a lean, capital-efficient biotechnology company, better positioned to engage with investors, strategic partners and potential future transactions.

By consolidating our CDMO activities into a dedicated platform and separating them from our R&D operations, we are aligning our structure with our strategy. This allows us to scale the CDMO business as a standalone growth engine while advancing our pipeline in a disciplined and capital-efficient manner.

Together with our collaboration with Recipharm, we are now positioned to support customer programs across the full development lifecycle while capturing value at multiple stages."

About Scinai Immunotherapeutics

Scinai Immunotherapeutics Ltd. (NASDAQ:SCNI) is a biopharmaceutical company operating a dual-engine model combining therapeutic innovation with a scalable CDMO platform.

The Company operates through two distinct but complementary pillars:

(i) Scinai Biopharma Services Ltd., its wholly owned subsidiary, which serves as a dedicated CDMO platform providing integrated development and manufacturing services to emerging biotech companies; and

(ii) Scinai Immunotherapeutics Ltd., the parent company, which operates a focused R&D organization advancing innovative therapeutics in inflammation and immunology.

Following the acquisition of Recipharm Israel in February 2026 and a subsequent corporate reorganization, Scinai has consolidated all CDMO activities under Scinai Biopharma Services Ltd., creating a unified platform operating across two complementary sites: biologics development and aseptic manufacturing in Jerusalem, and small-molecule development and manufacturing in Yavne.

Through its strategic collaboration with Recipharm, Scinai offers a differentiated lifecycle CDMO model, enabling customer programs to progress from early-stage development through late-stage clinical and commercial manufacturing via Recipharm's global network.

Scinai's R&D activities are focused on advancing innovative therapeutics based on two core pillars. The Company is developing its NanoAbs platform, which leverages VHH antibody fragments for advanced mono- and multi-specific antibody formats, in collaboration with the Max Planck Society and the University Medical Center Göttingen.

In parallel, the Company is advancing its PC111 program through an option agreement to acquire Pincell S.r.l., a clinical-stage biotechnology company. PC111 is a fully human monoclonal antibody targeting pathways involved in inflammation and keratinocyte cell death, with potential applications in severe dermatological conditions.

The Company continues to evaluate opportunities to acquire or in-license additional assets in or near clinical development.

Scinai's strategy is to build a capital-efficient biotechnology platform by combining a scalable, revenue-generating CDMO business with a focused R&D pipeline and strategic partnerships.

Company website: www.scinai.com

Company Contacts

Investor Relations - Allele Capital Partners | +1 978 857 5075 | aeriksen@allelecapital.com

Business Development | +972 8 930 2529 | bd@scinai.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Forward-looking statements include, among other things, statements regarding the Company's strategy, including the growth of its CDMO business, the expected benefits of the Recipharm transaction and collaboration, the anticipated benefits of the Company's recent corporate reorganization, including its impact on capital efficiency, operational focus and scalability, the development and potential of its R&D programs, including PC111 and its NanoAbs platform, the Company's CDMO revenue targets for 2026, and the Company's efforts to obtain non-dilutive funding, including FENG grants.

Words such as "expects," "intends," "plans," "believes," "may," "will," "anticipates," "estimates," and similar expressions are intended to identify forward-looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

These risks and uncertainties include, without limitation, the Company's ability to successfully integrate and realize the expected benefits of the Recipharm transaction, its ability to successfully implement its reorganization and achieve the anticipated benefits thereof, its ability to execute its CDMO growth strategy, its ability to secure non-dilutive funding, including grant approvals, the progress and timing of its R&D programs, including PC111, its ability to generate revenues from its CDMO business, and general market conditions, including the Company's ability to meet the continued listing requirements of The Nasdaq Capital Market.

More detailed information regarding these and other risks and uncertainties is included under the heading "Risk Factors" in the Company's Annual Report on Form 20-F and in the Company's subsequent filings with the U.S. Securities and Exchange Commission.

Forward-looking statements speak only as of the date of this press release. Except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect new information, future events, or otherwise

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Scinai Completes Strategic Reorganization to Establish Dedicated CDMO Platform and Lean R&D Structure; Outlines 2026 Priorities