Scilex Holding Co (NASDAQ:SCLX), a biopharmaceutical company specializing in biological products, announced today that its Board of Directors has authorized management to explore a range of strategic options to enhance shareholder value concerning its subsidiary, Semnur Pharmaceuticals, Inc., and its product candidate SP-102 (SEMDEXA™). These options may include a spin-off, merger, or other similar transactions.
On Thursday, the Board passed a resolution to potentially distribute up to a 10% ownership interest in Semnur to Scilex shareholders in the form of a dividend, contingent on the registration of Semnur's common stock with the Securities and Exchange Commission (SEC). This potential dividend is related to any prospective transaction that may arise from the ongoing strategic review.
The company highlighted that no record date for such a dividend has been set as it continues to evaluate the various strategic alternatives. Scilex will provide necessary disclosures in accordance with applicable laws and the rules of The Nasdaq Stock Market LLC if a dividend is declared as part of a potential transaction.
Scilex Holding's announcement is based on information furnished in a Current Report on Form 8-K filed with the SEC, which contains forward-looking statements regarding potential transactions involving Semnur.
The report emphasizes that the information should not be considered as filed under the Securities Exchange Act of 1934, nor incorporated by reference into any other filings under the Securities Act of 1933 or the Exchange Act.
Investors are advised to monitor Scilex Holding's communications for further details on the outcome of the Board's strategic review process and any subsequent actions that may affect shareholder value. The information about this corporate development is based on a press release statement.
In other recent news, Scilex Holding Co has seen significant developments. The company recently received a $10 million non-refundable deposit from FSF 33433 LLC, which enabled it to meet a financial obligation to Oramed Pharmaceuticals (NASDAQ:ORMP) Inc.
Furthermore, Scilex has published positive Phase 3 trial results for SP-102, a potential first FDA-approved corticosteroid for epidural injections, indicating significant pain reduction for sciatica patients.
Moreover, the company has launched GLOPERBA®, the first oral liquid medication for gout flare prevention in the United States, and has secured FDA approval for its commercial manufacturing. In other developments, Scilex has settled a patent lawsuit with Takeda Pharmaceuticals over Gloperba, with analysts from H.C. Wainwright adjusting their outlook on Scilex shares, maintaining a Buy rating but reducing the price target.
Lastly, Scilex has secured an agreement for a registered direct offering involving the sale of 15 million common stock shares, with anticipated gross proceeds of approximately $15 million. These recent developments illustrate Scilex's active engagement in expanding its non-opioid pain management portfolio and securing financial stability.
InvestingPro Insights
As Scilex Holding Co (NASDAQ:SCLX) explores strategic options for Semnur Pharmaceuticals, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Scilex has a market capitalization of $216.81 million, with a notable revenue growth of 12.54% over the last twelve months as of Q1 2024. Despite this growth, the company has faced challenges, including a negative P/E ratio of -1.4, indicating that it has not been profitable during this period.
InvestingPro Tips reveal that Scilex may have difficulty meeting its interest payments on debt as its short-term obligations exceed its liquid assets. Moreover, analysts are not expecting the company to turn a profit this year. Still, it is worth noting that Scilex has seen a strong return over the last month, with a 65.74% increase in its price total return, which could be a sign of investor optimism or a reaction to recent developments.
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