Alliance Global Partners initiated coverage on Scilex Holding Company (NASDAQ: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. (NASDAQ: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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