Scienture Holdings Reports Preliminary Q3 Revenue Growth To $1.22M; Co Targeting Profitability In 2027

Preliminary Unaudited Third Quarter Revenue Increased 256% Sequentially to Approximately $1.22 Million, Supported by Continued Arbli™ Growth and the Commercial Launch of REZENOPY™

Two FDA-Approved Commercial Products Position Company for Continued Sequential Revenue Growth

High Gross Margins and Established Commercial Infrastructure Provide Operating Leverage Potential as Company Targets Profitability in 2027

COMMACK, NY, Oct. 22, 2026 (GLOBE NEWSWIRE) -- SCIENTURE HOLDINGS, INC. (NASDAQ:SCNX) ("Scienture"), a holding company for existing and planned pharmaceutical operating companies focused on providing enhanced value to patients, physicians and caregivers through the development, commercialization, and distribution of novel specialty products that address unmet market needs, today issued the following letter to shareholders.

Key Commercial and Financial Achievements During the First Nine Months of 2026

• 256% Sequential Revenue Growth: Reported preliminary, unaudited third-quarter 2026 revenue of approximately $1.22 million, compared to $343,639 in the second quarter, reflecting accelerating commercial momentum following the launch of the Scienture’s second commercial product.
  
   
• Successful Launch of Second FDA-Approved Product: Commercially launched REZENOPY™ in August 2026, with initial wholesale shipments contributing to third-quarter revenue and establishing a second commercial revenue stream.
  
   
• 74% Sequential Increase in Arbli™ Wholesale Unit Sales: Continued to drive commercial adoption and increasing wholesale demand for Arbli™ during the third quarter of 2026.
  
   
• Expanded Institutional Adoption: Secured formulary additions for Arbli™ at more than ten (10) leading U.S. pediatric academic medical centers, strengthening the product's presence within important healthcare institutions.
  
   
• Expanded REZENOPY™ Distribution: Advanced commercialization through a strategic distribution partnership focused on addiction treatment centers, broadening the product's potential market reach.
  
   
• High Gross Margin Profile: Reported gross margins of approximately 97.7% in the second quarter of 2026, supporting the potential for meaningful operating leverage as revenue increases.
  
   
• Broad Commercial Market Access: REZENOPY™ GPO agreements provide access to more than 5,000 healthcare facilities, with commercial payer and government access potentially reaching over 100 million covered lives, while Arbli™ continues to expand its formulary placements and payer coverage, supporting broader adoption of both products.
  
   
• Strengthened Intellectual Property Portfolio: Secured U.S. patent protection for REZENOPY™ extending into 2041, complementing Arbli™ patent protection until 2041.

Dear Fellow Shareholders,

The first nine months of 2026 have marked a transformational period for Scienture as we transitioned into a multi-product commercial pharmaceutical company, accelerated revenue growth, and expanded the market presence of our two FDA-approved products. We believe these achievements have established a strong foundation for the next phase of our growth and represent meaningful progress toward our objective of achieving profitability in 2027.

Our preliminary, unaudited third-quarter 2026 revenue reached approximately $1.22 million, representing a 256% sequential increase over the second quarter. This performance was supported by continued commercial growth in Arbli™, including a 74% sequential increase in wholesale unit sales, alongside initial wholesale shipments of REZENOPY™ following its August 2026 commercial launch.

Importantly, we believe this momentum is only beginning to reflect the commercial potential of our expanding product portfolio. We believe the continued commercial traction of Arbli™, combined with the early-stage commercialization of REZENOPY™, positions us well to deliver continued sequential revenue growth as both products scale.

Over the past several quarters, we have invested in establishing the commercial infrastructure necessary to support our products, including sales resources, wholesale distribution, institutional market access, and payer relationships. As revenue increases, we believe this existing infrastructure, combined with our historically high gross margins, provides an opportunity to meaningfully improve operating performance without a proportionate increase in expenses.

Building Momentum Across Two FDA-Approved Commercial Products

Arbli™ Continues to Expand Its Commercial Footprint

Arbli™ (losartan potassium) Oral Suspension is the first and only FDA-approved, ready-to-use oral liquid formulation of losartan, addressing an established U.S. market representing approximately $218 million in annual sales and more than 73 million prescriptions, according to August 2026 IQVIA data.

This mature market has long been dominated by oral solid (tablet) formulations from generic manufacturers, with the original branded product (Cozaar) now largely genericized. The vast majority of prescriptions are tablets, leaving a meaningful underserved segment of patients, particularly elderly individuals, pediatric patients age six and older, and others with dysphagia or difficulty swallowing, who previously relied on inconsistent pharmacy compounding.

Arbli™ addresses this unmet need through a standardized, FDA-approved oral liquid formulation that eliminates the variability associated with pharmacy compounding while offering flexible dosing, convenient room-temperature storage, and an approved 24-month shelf life. We believe these attributes provide meaningful advantages for physicians, patients, and healthcare institutions seeking consistent and convenient treatment options.

During the third quarter of 2026, Arbli™ wholesale unit sales increased 74% sequentially, reflecting continued progress in expanding commercial demand. We have also secured the addition of Arbli™ to the formularies of more than ten (10) leading U.S. pediatric academic medical centers, an important milestone in establishing the product within key institutional treatment settings.

We believe these developments provide a foundation for continued market share gains as we pursue additional formulary placements, broaden physician awareness, and expand patient access. Arbli™ also benefits from U.S. patent protection extending into 2041, supporting its long-term commercial potential.

REZENOPY™ Establishes a Second Revenue Growth Opportunity

The commercial launch of REZENOPY™ (naloxone hydrochloride) Nasal Spray 10 mg in August 2026 represented another important milestone in Scienture's evolution into a multi-product commercial pharmaceutical company.

According to IQVIA data (August 2026), the U.S. naloxone nasal spray market represents approximately $137 million in annual sales, with approximately 9 million units sold annually, has historically been led by lower-dose products, including Narcan® 4 mg, alongside other approved formulations and generic alternatives. The ongoing opioid crisis, particularly the prevalence of potent synthetic opioids such as fentanyl, continues to underscore the importance of access to opioid overdose reversal treatments.

REZENOPY™ is the highest-dose FDA-approved naloxone nasal spray available in the United States, delivering 10 mg of naloxone in a single-use device for the emergency treatment of known or suspected opioid overdose. The product combines the established naloxone molecule and familiar nasal spray delivery method with a differentiated higher-dose formulation, providing an additional treatment option for healthcare providers and emergency responders.

Through our collaboration with Summit Biosciences, a subsidiary of Kindeva Drug Delivery, Scienture holds exclusive U.S. commercialization rights to REZENOPY™, supporting our strategy to establish a differentiated presence in the naloxone market.

Initial wholesale shipments contributed to our third-quarter revenue growth, and we are focused on expanding distribution and adoption through our strategic commercialization relationships, including channels serving addiction treatment centers and healthcare institutions.

As REZENOPY™ progresses beyond its initial launch phase, we believe increasing market access and product adoption can support continued revenue growth alongside Arbli™. REZENOPY™ also benefits from U.S. patent protection extending into 2041, supporting its long-term commercial potential.

High Gross Margins and Operating Leverage Support Our Path Toward Profitability

Beyond our commercial achievements, we view one of the most compelling aspects of Scienture's business model as the potential for significant operating leverage as revenue scales.

We believe we have made meaningful progress in improving our financial performance and operating cost structure. During the second quarter of 2026, operating expenses decreased approximately 41% to $3.0 million, compared to $5.2 million in the prior-year period. Our operating loss improved approximately 48% to $2.7 million, compared to $5.2 million in the second quarter of 2025, while net loss narrowed approximately 58% to $2.8 million, compared to $6.7 million in the prior-year period.

Importantly, we reported gross margins of approximately 97.7% during the second quarter of 2026, demonstrating the attractive economics of our commercial product portfolio. We believe these historically high gross margins, combined with continued revenue growth and disciplined expense management, provide an opportunity to further reduce operating losses as sales scale.

We have already established much of the commercial infrastructure required to support both products, including national sales resources, wholesale distribution relationships, and institutional market access. As sales volumes increase, we believe we can leverage these existing capabilities without a proportionate increase in operating expenses.

Our focus remains on maximizing the revenue potential of the commercial platform we have built while maintaining financial discipline. We believe the combination of accelerating revenue growth, high gross margins, and an improved operating cost structure positions Scienture to make meaningful progress toward our objective of achieving profitability in 2027.

Expanding Market Access and Strengthening Our Commercial Platform

A key component of our strategy has been establishing the distribution and market access capabilities necessary to support sustained commercial growth of both Arbli™ and REZENOPY™.

For REZENOPY™, group purchasing organization ("GPO") agreements provide access to more than 5,000 healthcare facilities, while commercial payer coverage and government access through CMS have the potential to reach more than 100 million covered lives.

Arbli™ also continues to gain commercial traction, with wholesale unit sales increasing 74% sequentially in the third quarter. We secured additional formulary placements, expanded commercial access, and built on prior GPO and payer coverage wins, including expansions reaching approximately 12.5 million additional covered lives.

Together, these developments, supported by our national sales resources and wholesale distribution capabilities, strengthen our commercial platform. We believe this infrastructure will enable us to scale revenue more efficiently, improve operating leverage, and support our goal of achieving profitability in 2027.

Competitive Advantages Position Scienture for Continued Market Share Gains

We believe Scienture is well positioned to capture market share in established pharmaceutical markets through a combination of differentiated FDA-approved products, long-term intellectual property protection, and an established commercial infrastructure.

Our competitive advantage is built on three key strengths: differentiated 505(b)(2)-style formulations that address unmet patient needs within large, established markets; U.S. patent protection extending into 2041 for Arbli™ and REZENOPY™; and a focused commercial platform encompassing national sales resources, GPO and payer relationships, wholesale distribution, institutional formulary access, and patient support capabilities.

Our strategy for increasing market share centers on expanding institutional and hospital formulary adoption, broadening payer coverage, strengthening physician engagement, and increasing product utilization across retail and institutional channels. We believe these initiatives will help drive continued sequential sales growth while leveraging our existing commercial infrastructure.

Importantly, both products address established markets with meaningful opportunities for penetration. Even modest market share gains within the approximately $218 million U.S. losartan market, combined with increasing adoption in the approximately $137million naloxone nasal spray market, could translate into meaningful incremental revenue. Given our historically high gross margins, we believe these opportunities can contribute significantly to improving operating performance as sales scale.

Early commercial results, including the 74% sequential increase in Arbli™ wholesale unit sales and initial REZENOPY™ revenue contributions, reinforce our confidence in this strategy.

Looking Ahead: Continued Revenue Growth and Profitability in 2027

As we move through the remainder of 2026 and into 2027, our priorities remain centered on accelerating revenue growth, expanding commercial adoption, and improving operating performance.

For Arbli™, we intend to build on recent institutional formulary wins, broaden physician engagement, and increase patient access across pediatric and cardiovascular treatment settings.

For REZENOPY™, our focus is on expanding distribution, increasing institutional and treatment-center adoption, and building upon the initial commercial revenue generated following its launch.

We believe the combination of these initiatives positions Scienture to sustain sequential revenue growth as both products continue to scale. Our historically high gross margins and established commercial infrastructure provide the potential for meaningful operating leverage as sales increase, supporting our objective of achieving profitability in 2027.

Positioned for the Next Phase of Growth

Scienture today is a fundamentally different company than it was at the beginning of 2026. We have two FDA-approved products generating commercial revenue, expanding institutional adoption, established distribution and market access capabilities, and a high-margin business model designed to benefit from increasing sales volumes.

We believe the next phase of our growth will be defined by our ability to translate these commercial achievements into sustained revenue growth, improving financial performance, and ultimately profitability.

While meaningful work remains ahead, we are encouraged by the progress we have made and confident in the opportunities before us. Our focus remains on disciplined execution, responsible capital allocation, and building a sustainable specialty pharmaceutical company capable of delivering long-term shareholder value.

We thank our shareholders for their continued confidence and support and look forward to providing additional updates as we advance our commercial and financial objectives.

Sincerely,

Narasimhan Mani

President and Co-Chief Executive Officer

Shankar Hariharan

Executive Chairman and Co-Chief Executive Officer