Israel’s Scinai separates CDMO business from R&D operations

Scinai Immunotherapeutics announced a corporate reorganization that separates its contract development and manufacturing organization (CDMO) operations from its research and development business. All CDMO-related activities have been consolidated into a dedicated subsidiary, Scinai Biopharma Services, following Scinai’s February 2026 acquisition of Recipharm Israel.

Scinai said the reorganization transfers employees, infrastructure, manufacturing facilities, and customer contracts into the CDMO subsidiary, creating a standalone operating platform focused on development and manufacturing services.

The company said Scinai Biopharma Services combines biologics development and aseptic manufacturing capabilities at its Jerusalem site with small-molecule development and active pharmaceutical ingredient (API) manufacturing at its Yavne facility acquired from Recipharm Israel. According to the company, the platform also includes access to external manufacturing capacity through its collaboration with Recipharm.

Scinai said the integrated model is designed to support customer programs from early-stage development through commercial manufacturing, while also providing referral-based royalties tied to downstream production.

Following the reorganization, Scinai Immunotherapeutics said it will operate with a leaner R&D structure focused on advancing its PC111 program and an IL-17 bispecific development candidate while improving capital efficiency.

The company said its 2026 goals include scaling CDMO operations across its sites, expanding its customer base in the U.S. and Europe, and generating approximately $5 million in CDMO revenue.