Tivic Health shares surge 11.34% after hours following asset acquisition and launch of Velocity Bioworks CDMO subsidiary.

Tivic Health Systems (NASDAQ:TIVC) surged 11.34% in after-hours trading following the announcement that it acquired manufacturing and development assets from Scorpius Holdings and launched Velocity Bioworks, a contract development and manufacturing subsidiary. The deal, financed with $16 million in debt and up to $75 million in convertible equity, secures U.S.-based production for Tivic’s lead drug candidate, Entolimod, and positions the company to reduce costs and generate revenue through third-party contracts. The transaction also includes a $50 million equity line of credit from 3i, LP, enhancing growth capital access. The move aligns with Tivic’s strategic shift to biopharmaceuticals, addressing investor concerns over recent financial underperformance. While the company reported a third-quarter net loss and revenue decline earlier in the day, the acquisition appears to have reignited optimism about its long-term prospects in the biopharma sector.