Tivic Health shares surge 13.45% intraday after acquiring manufacturing assets and launching CDMO subsidiary Velocity Bioworks, funded by $16M debt and $75M convertible equity from 3i, LP.

Tivic Health Systems surged 13.45% intraday following its announcement of acquiring manufacturing and development assets from Scorpius Holdings and launching a contract development and manufacturing organization (CDMO) subsidiary, Velocity Bioworks. The acquisition, funded by 3i, LP with €16 million in debt and up to €75 million in convertible preferred equity, secures U.S.-based production for its FDA-designated Entolimod drug candidate, targeting acute radiation syndrome. The move is positioned to reduce development costs, accelerate timelines, and unlock revenue potential through the new CDMO. Positive investor sentiment was reflected in a 16.67% weekly return, despite a 59.56% year-to-date decline. The strategic shift toward biopharmaceuticals, though highlighted in recent earnings, was overshadowed by the immediate optimism around the acquisition and manufacturing expansion.