Tivic Health Systems has acquired the manufacturing and development assets of Scorpius Holdings, significantly expanding the company’s capabilities to advance its biologics pipeline, including its lead drug candidate, Entolimod. The transaction also enables the launch of Velocity Bioworks. This wholly owned Tivic subsidiary will operate as a Contract Development and Manufacturing Organization, providing cellular and biologic production services to Tivic and external biotechnology companies.
The acquisition provides Tivic with a fully established United States-based manufacturing site supporting the company’s plans to progress Entolimod toward a Biologics License Application with the U.S. Food and Drug Administration. Tivic noted that consolidating manufacturing internally is expected to reduce development costs, eliminate delays associated with outsourcing, and accelerate progress across its oncology programs, including additional Entolimod and Entolasta indications such as neutropenia and advanced cancer.
Velocity Bioworks is expected to create new near-term commercial opportunities by enabling Tivic to offer development and manufacturing services to other biotechnology firms. Tivic said the organization will prioritize value, quality, and production speed for biologic and cell therapy programs.
Earlier in the year, Tivic validated the Entolimod cell line within the same facility that now serves as Velocity Bioworks. That validation marked a significant manufacturing milestone and advanced the company toward full compliance with current Good Manufacturing Practice standards required for commercialization.
The acquisition is supported by a financing package exceeding $90 million, led by 3i LP. Tivic secured $16 million in debt financing to purchase the Scorpius assets, including associated equipment and facility upgrades. The company also obtained access to up to $75 million in preferred convertible equity, with $18 million available in the near term and the remainder available at Tivic’s discretion, subject to conditions. Additionally, an affiliate of 3i LP is expected to provide a $50 million equity line of credit to broaden Tivic’s access to growth capital.
Following the acquisition, Tivic will add 45 new employees, who will receive inducement stock option grants totaling 54,000 shares.
KEY QUOTES:
Tivic has entered a new era. With the licensing earlier this year of a Phase III biologic asset and our strategic expansion into biologics, the next logical step is bringing development and manufacturing capabilities in-house. This allows us to lower development costs and eliminate long wait times often associated with outsourcing. It also unlocks the potential for meaningful revenue through the launch of Velocity Bioworks-our new CDMO built for fast, high-quality biologic production that can serve both us and third-party biotech companies. More importantly, it positions Entolimod™ for rapid advancement toward a BLA and accelerates development across our oncology portfolio.
Jennifer Ernst, CEO, Tivic Health Systems
