Tivic Health Systems (TIVC) Investor Update summary

Strategic transformation and acquisition

• Transitioned from consumer health tech to vertically integrated immunotherapeutics, acquiring manufacturing and development assets to support commercialization of drug candidates and forming the Velocity BioWorks subsidiary.

• Acquisition of Scorpius Biomanufacturing assets for $16 million enabled in-house cGMP manufacturing, reducing reliance on external CDMOs and accelerating development timelines.

• Achieved significant milestones, including a 200x engineering scale-up and the ability to produce tens of millions of doses annually.

• Velocity BioWorks will serve both internal needs and third-party clients, unlocking new revenue streams and supporting rapid clinical advancement.

Operational and financial impact

• In-house manufacturing slashes costs and eliminates long wait times, with estimated savings of $10 million before BLA filing and even greater savings over the product lifecycle.

• Facility acquired for $16 million would have cost $80–$100 million to build from scratch, providing a significant capital advantage.

• Production capacity exceeds 20 million doses of Entolimod annually, with expansion potential and revenue capacity in the billions.

• Financing package includes $18 million upfront and access to $75 million in preferred convertible equity, supporting execution of the 2026 strategy.

Market positioning and growth opportunities

• Velocity BioWorks targets the fast-growing biologics CDMO market, projected to reach $145 billion by 2037, with a focus on early-stage biotech clients facing capacity constraints.

• Facility can serve 15–20 concurrent client programs, with potential annual revenue of $70 million at full capacity.

• Positioned to benefit from rising demand for monoclonal antibodies, biosimilars, and cell/gene therapies, as well as demographic trends driving pharmaceutical growth.

• U.S.-based manufacturing strengthens relationships with government agencies and supports supply chain security, enhancing prospects for government contracts.