CTAs are almost max long in equities, have very limited room to buy: UBS
PALO ALTO, Calif. - Scilex Holding Company (NASDAQ:SCLX), a firm specializing in non-opioid pain management, announced today the Health Canada approval for ELYXYB (celecoxib oral solution) for the acute treatment of migraines in adults. This marks a significant milestone for nearly five million Canadians living with migraine, offering them a new treatment option. The company, which generated revenue of $56.59M in the last twelve months with impressive growth of 21.07%, continues to expand its market presence. According to InvestingPro data, analysts anticipate further sales growth in the current year.
Migraine, a condition more severe than typical headaches, affects over 2.7 million Canadians, with the national migraine therapeutics market projected to reach around $400 million by 2025. ELYXYB, which belongs to the non-steroidal anti-inflammatory drug (NSAID) class, has been recognized for its rapid action and potential for lower gastrointestinal side effects compared to other NSAIDs. While Scilex’s stock has faced recent market challenges, InvestingPro analysis suggests the company is currently undervalued, with additional insights available to subscribers through 10+ exclusive ProTips.
Clinical studies have shown that ELYXYB can provide pain relief in as little as 15 minutes, with about half of the patients experiencing significant pain relief within 45 minutes when compared to a placebo. Dr. Christine Lay, a neurology professor at the University of Toronto, welcomed the approval, highlighting the drug’s efficacy and safety profile that aligns with the unmet needs of patients who either do not respond to triptan therapy or have contraindications to its use.
Scilex’s presence in Canada is strategic, given that the country ranks among the top 10 global pharmaceutical markets and is the second-largest export destination for U.S. pharmaceuticals. The approval of ELYXYB is particularly notable as the drug is manufactured in Canada, potentially enhancing international recognition and regulatory harmonization.
Scilex’s portfolio also includes ZTlido (lidocaine topical system) for neuropathic pain associated with postherpetic neuralgia and Gloperba (oral colchicine solution) for gout flare prophylaxis. Additionally, the company has several product candidates in development, including SP-102 (SEMDEXA), a corticosteroid gel for sciatica pain, which has completed Phase 3 studies and received Fast Track status from the FDA.
This announcement is based on a press release statement from Scilex Holding Company. The company’s forward-looking statements involve risks and uncertainties, including market acceptance of ELYXYB in Canada and the development of additional treatments for other conditions as part of a proposed joint venture with IPMC Company. Investors are advised that actual results may differ from projected outcomes. Despite current challenges, InvestingPro data shows analysts expect the company to become profitable this year, with a positive EPS forecast of $0.17 for FY2025.
In other recent news, Scilex Holding Co announced a 1-for-35 reverse stock split of its common stock, effective April 15, 2025. This move aims to comply with Nasdaq’s minimum bid price requirement by consolidating approximately 243 million outstanding shares into about 6.9 million shares. As a result, fractional shares will not be issued, and shareholders will receive cash payments for any fractions based on the stock’s closing price on April 14, 2025. Boral Capital has downgraded Scilex’s stock rating from Buy to Hold, adopting a cautious approach until the effects of the reverse split become clearer. In addition, Scilex has voluntarily terminated its Sales Agreement with B. Riley Securities Inc., Cantor Fitzgerald & Co., and H.C. Wainwright & Co., LLC, which had generated gross proceeds of about $2.69 million from the sale of 2.76 million shares. The U.S. Bankruptcy Court for the Southern District of Texas has extended the lock-up period for Scilex’s Dividend Stock to April 14, 2025. Scilex is also pursuing a joint venture with IPMC to develop treatments for neurodegenerative and cardiometabolic diseases. These developments highlight Scilex’s strategic efforts to maintain its Nasdaq listing and expand its business ventures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.