Scorpius Holdings Announces Corporate Update Including Cost Optimization Initiatives, Strategic Corporate Developments, and Potential Opportunities for Expansion into Southeast Asia

Yahoo

05-05-2025

Operational Realignment Expected to Deliver Over $6 Million in Annual Cost Savings
Company Exploring CDMO Expansion Opportunities in Southeast Asia
San Antonio, TX, May 04, 2025 (GLOBE NEWSWIRE) -- Scorpius Holdings, Inc (OTC: SCPX) ('Scorpius' or 'the Company'), an integrated contract development and manufacturing organization ("CDMO'), today provided a corporate update highlighting key strategic initiatives, including cost optimization measures expected to yield over $6 million in annualized savings and the Company's exploration of opportunities to expand operations into Southeast Asia through a potential biomanufacturing presence in Malaysia.
Major Operational Cost Optimization Program Initiated
Scorpius has launched a strategic restructuring initiative designed to streamline operations, improve capital efficiency, and position the Company for long-term sustainable growth. This initiative includes a 28% reduction in headcount and the realignment of select non-core expenditures.
These actions are expected to generate over $6 million in annualized cost savings while preserving the Company's ability to deliver high-quality services to its client base.
'We have proactively implemented structural changes to right-size our operations, including workforce reductions and the closing of our North Carolina facilities to consolidate operations in one location,' said Jeff Wolf, Chief Executive Officer of Scorpius Holdings. 'While these decisions are difficult, we believe they are essential to accelerating our path to profitability.'
Scorpius Exploring Opportunities to Establish a Halal-Certified Biomanufacturing Presence in Malaysia
As part of its international business strategy, Scorpius is seeking to establish operations in Malaysia focused on delivering halal-compliant biomanufacturing and CDMO services. The Company is in preliminary discussions with key Malaysian stakeholders and regulatory authorities to explore the formation of a Malaysian subsidiary that would support regional and global distribution of biologics manufactured in accordance with halal standards.
This initiative seeks to address a critical unmet need within the 2-billion-person global Muslim population, which remains significantly underserved in access to halal-certified biopharmaceutical products. Scorpius believes that its differentiated approach could meet the growing demand across Southeast Asia and other Muslim-majority markets.
'We are encouraged by the potential opportunity to bring our CDMO expertise to Southeast Asia and collaborate with the Malaysian government to develop halal-compliant biomanufacturing capabilities,' said Mr. Wolf. 'This expansion, if realized, would position Scorpius as a first mover in a critically underserved yet rapidly growing segment of the biopharma industry.'
YB Chang Lih Kang, Malaysia's Minister of Science, Technology and Innovation (MOSTI), commented, 'We look forward to working closely with Scorpius Holdings as they aim to bring their expertise in biomanufacturing to Malaysia. There is an urgent need for regional access to high-quality biologics—especially those produced to halal standards. This collaboration underscores Malaysia's commitment to becoming a global hub for halal biopharmaceutical innovation.'
All forward-looking statements regarding the Company's potential operations in Malaysia are subject to customary regulatory, legal, and commercial approvals. Scorpius intends to pursue these opportunities in full compliance with local ownership laws and applicable government incentives and policies.
New Board Appointment to Support Growth and Global Expansion
Scorpius has strengthened its Board of Directors with the appointment of Tan Sze Thuan, a prominent Malaysian entrepreneur. Mr. Tan is the Founder and Chief Executive Officer of World Total Logistics Sdn Bhd, a leading logistics company in Malaysia offering integrated solutions in shipping, freight forwarding, trucking, warehousing, and distribution. Under his leadership, the firm has become a key player in the nation's logistics and supply chain landscape. Mr. Tan's extensive operational and business development experience across Southeast Asia uniquely positions him to support Scorpius's global expansion strategy, especially in navigating partnerships, infrastructure development, and regulatory engagement.
'This appointment aligns with our commitment to building a world-class board capable of guiding Scorpius through its next chapter of growth, including the potential for international expansion,' added Mr. Wolf.
Advancing Biotech Leadership with a Global Vision
Scorpius continues to serve clients in biologics manufacturing, process development, and analytical services. The Company believes that expanding these capabilities into Southeast Asia—while embedding halal standards from the ground up—could unlock access to new global markets and serve critical healthcare needs in a culturally aligned and commercially scalable manner. At the same time, the Company continues to explore a variety of potential strategic alternatives aimed at maximizing shareholder value.
Scorpius Holdings, Inc.
Scorpius Holdings, Inc. is an integrated contract development and manufacturing organization (CDMO) focused on rapidly advancing biologic programs to the clinic and beyond. Scorpius offers a broad array of analytical testing, process development, and manufacturing services to pharmaceutical and biotech companies at its state-of-the-art facilities in San Antonio, TX. With an experienced team and new, purpose-built U.S. facilities, Scorpius is dedicated to transparent collaboration and flexible, high-quality biologics biomanufacturing. For more information, please visit www.scorpiusbiologics.com.
Forward-Looking StatementThis release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions, and include statements such as the Company's potential opportunities for expansion into Southeast Asia; the operational realignment delivering over $6 million in annual cost savings; exploring opportunities to expand operations into Southeast Asia through a biomanufacturing presence in Malaysia; the strategic initiative streamlining operations; improving capital efficiency; and positioning the Company for long-term sustainable growth;; preserving the Company's ability to deliver high-quality services to its client base; accelerating the Company's path to profitability; establishing operations in Malaysia focused on delivering halal-compliant biomanufacturing and CDMO services; forming a Malaysian subsidiary that would support regional and global distribution of biologics manufactured in accordance with halal standards; addressing a critical unmet need within the global Muslim population; meeting the growing demand across Southeast Asia and other Muslim-majority markets; bringing the Company's CDMO expertise to Southeast Asia and collaborating with the Malaysian government to develop halal-compliant biomanufacturing capabilities; positioning the Company as a first mover in a critically underserved yet rapidly growing segment of the biopharma industry; pursuing opportunities in Malaysia in full compliance with local ownership laws and applicable government incentives and policies, building a world-class board capable of guiding the Company through its next chapter of growth, including the potential for international expansion; the expected contribution of Mr. Tan;; expanding the Company's biologics manufacturing, process development, and analytical services into Southeast Asia while embedding halal standards from the ground up and unlocking access to new global markets and serving critical healthcare needs in a culturally aligned and commercially scalable manner; and the Company continuing to explore a variety of potential strategic alternatives aimed at maximizing shareholder value. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company's ability to effect its strategic operational realignment as planned and achieve its expected results; the Company's ability to accelerate its path to profitability; the Company's ability to establish operations in Malaysia focused on delivering halal-compliant biomanufacturing and CDMO services; the ability to maximize shareholder value; the ability of Mr. Tan to assist the Company as expected; the Company's ability to unlock access to new global markets and serve critical healthcare needs in a culturally aligned and commercially scalable manner; the Company's ability to obtain regulatory approvals or to comply with ongoing regulatory requirements; regulatory limitations relating to the Company's ability to successfully promote its services and compete as a CDMO; and other factors described in the Company's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Qs and any other filings the Company makes with the SEC. The information in this presentation is provided only as of the date presented, and the Company undertakes no obligation to update any forward-looking statements contained in this presentation on account of new information, future events, or otherwise, except as required by law.
Media and Investor Relations ContactDavid Waldman+1 919 289 [e-mail]