Scilex Explores Strategic Options, Analyst Initiates On Blockbuster Potential For Sciatica Pain Candidate

Alliance Global Partners initiated coverage on Scilex Holding Company SCLX, a company focused on non-opioid pain treatment solutions.

On Wednesday, Scilex announced that its board of directors authorized management to explore strategic options, including a potential spinoff or dividend distribution the common stock

The board is also considering a public listing of Scilex Pharma’s securities on exchanges outside the U.S., such as in Hong Kong, or other strategic transactions.

The company has three FDA-approved products:

• Lead drug product ZTlido, a 1.8% lidocaine topical product targeting neuropathic pain associated with postherpetic neuralgia or shingles pain.
• Elyxyb (celecoxib oral solution) for the acute treatment of migraine.
• Gloperba (colchicine USP) for painful gout flares in adults.

Scilex’s Phase 3 candidate, SEMDEXA (SP-102), a non-opioid injectable corticosteroid gel designed to treat lumbosacral radicular pain, commonly known as sciatica.

The current treatment involves off-label use of epidural steroid injections, administered more than 12 million times a year.

If approved, SEMDEXA can become the standard treatment for sciatica. At its peak, it could reach blockbuster status and generate over $1 billion in annual sales.

Scilex is set to begin a Phase 3 safety trial for SEMDEXA in the fourth quarter of 2024. A possible FDA marketing application submission is planned for 2026. If approved, the product could launch in 2027.

The analyst anticipates that SEMDEXA, once on the market, could generate $1.2 billion in sales by 2030.

Alliance initiates Scilex Holding with a Buy rating and a price target of $14.

In July, Semnur Pharmaceuticals Inc., a wholly-owned subsidiary of Scilex Holding Company and Denali Capital Acquisition Corp. DECA, a special purpose acquisition company, signed a letter of intent for a proposed business combination.

Price Action: Scilex stock is up 6.5% at 86 cents at last check Wednesday.

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