PALO ALTO, Calif. - Scilex Holding Company (NASDAQ: SCLX), a firm engaged in the development and commercialization of non-opioid pain management products, has released preliminary unaudited financial results for the first quarter ended March 31, 2024.
The company reported an increase in gross sales for its product ZTlido®, with figures estimated between $34.0 million and $38.0 million, marking a growth of approximately 24% to 38% compared to the same period in the previous year. Net sales for ZTlido® are also up, with estimates ranging from $12.0 million to $13.0 million, indicating a growth of roughly 13% to 23%.
In addition to its financial results, Scilex announced plans to reduce research and development (R&D) and other administrative expenses throughout 2024. The company intends to reallocate resources to enhance commercial and production activities for its products, focusing on late-stage pipeline programs such as SP-102. This strategy is aimed at driving value creation and meeting the increasing demand for non-opioid pain management solutions.
Scilex also highlighted its efforts to address a recent disruption caused by a cyber-attack on Change Healthcare (NASDAQ:CHNG), which affected the processing of insurance claims for its co-pay savings card. The company has successfully restored normal operations for ZTlido® co-pay savings card processing as of today.
The company's portfolio includes ZTlido®, a lidocaine topical system for neuropathic pain associated with postherpetic neuralgia, and other products such as ELYXYB® for acute migraine treatment and Gloperba®, an anti-gout medication expected to launch in the first half of 2024.
Scilex's preliminary financial data is subject to completion of its review and may differ materially from the estimated results. The company's independent auditor has not reviewed or audited these preliminary figures. These statements are based on a press release from Scilex Holding Company and are forward-looking, subject to risks and uncertainties that could cause actual results to differ materially.
InvestingPro Insights
In the wake of Scilex Holding Company's (NASDAQ: SCLX) recent preliminary financial report, InvestingPro data provides a deeper perspective on the company's financial health and market performance. As of the last twelve months ending Q4 2023, Scilex has been navigating a challenging financial landscape with a Market Cap of $135.84 million and a negative Price/Earnings (P/E) Ratio of -0.86, which reflects the company's current lack of profitability.
Despite the reported growth in gross sales for ZTlido®, Scilex operates with a significant debt burden and may have trouble making interest payments on its debt, as noted in InvestingPro Tips. This is a critical consideration for investors, particularly since the company is also quickly burning through cash and its short-term obligations exceed its liquid assets. Analysts do not anticipate the company will be profitable this year, which aligns with the negative P/E ratio and the fact that Scilex has not been profitable over the last twelve months.
On a positive note, analysts anticipate sales growth in the current year, which is evidenced by the reported 22.9% revenue growth over the last twelve months as of Q4 2023. This could be a signal of potential for turnaround, especially as the company focuses on enhancing commercial and production activities.
For investors seeking a comprehensive analysis of Scilex's financial position and future outlook, there are additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/SCLX. These include insights into the stock's technical indicators, such as the RSI suggesting the stock is in oversold territory, and other relevant financial metrics.
For those interested in a deeper dive into Scilex's financial metrics and analyst forecasts, InvestingPro offers a wealth of resources. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to a total of 10 InvestingPro Tips that could further inform your investment decisions.
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