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TAMPA - Scienture Holdings, Inc. (NASDAQ:SCNX), currently trading at $1.05 per share after falling over 90% in the past year, has terminated its Equity Line of Credit (ELOC) facility effective May 22, 2025, according to a company announcement made Tuesday.
The pharmaceutical holding company has filed a post-effective amendment to deregister all 310,488 unsold shares of common stock that had been registered under the facility. The original registration statement was filed in December 2025 and became effective on February 14, 2025. According to InvestingPro data, the company operates with a moderate debt level and shows concerning cash burn rates, potentially explaining the strategic shift in financing approach.
The company framed the decision as a strategic financial move ahead of the commercial launch of Arbli, its FDA-approved ready-to-use oral liquid losartan product, planned for the third quarter of 2025. With a current market capitalization of just $13.77 million and negative EBITDA of -$12.78 million in the last twelve months, the company faces significant financial challenges. InvestingPro subscribers have access to 8 additional key financial metrics and insights about SCNX’s valuation and growth prospects.
"This move allows management to focus more on our planned commercialization of Arbli upcoming in summer 2025," said Shankar Hariharan, Co-Chief Executive Officer and Executive Chairman, in the press release.
Naraismhan Mani, Co-Chief Executive Officer and President, stated that cancelling the ELOC facility represents a commitment to finding "more favorable funding opportunities" to support the company’s strategic plans.
Arbli is indicated for treating hypertension in patients over 6 years old, reducing stroke risk in patients with hypertension and left ventricular hypertrophy, and treating diabetic nephropathy in certain type 2 diabetes patients.
The product is described as the first and only oral liquid formulation of losartan approved by the U.S. FDA. It comes as a peppermint-flavored suspension with a 24-month shelf life at room temperature.
Scienture Holdings operates through its subsidiaries Scienture, LLC and Integra Pharma Solutions, LLC, focusing on specialty pharmaceutical products and pharmaceutical wholesale, respectively.
The information in this article is based on a company press release statement.
In other recent news, Scienture Holdings has announced the sale of its non-core subsidiaries, Integra Pharma Solutions, Bonum Health, Inc., and Softell, Inc., to Tollo Health, Inc. for $5 million. This move is part of the company’s strategic realignment to focus on its branded and specialty pharmaceutical markets. The proceeds from the sale will support Scienture, LLC in its commercial and strategic product development initiatives. Additionally, Scienture Holdings is preparing to launch two FDA-approved commercial products in the latter half of 2025, marking a significant shift in its business focus. The company has secured exclusive U.S. rights to launch REZENOPY® (naloxone HCl) Nasal Spray, which has an annual sales potential of $189 million in the U.S. market. Scienture Holdings aims to target meaningful market share, with a combined total annual sales potential of $481 million for Losartan and Naloxone in the U.S. market. The company is also focusing on developing a novel specialty product pipeline, including an injectable pen for migraines and a biosimilar product in the CVS therapeutic area. This strategic pivot is expected to enhance operational efficiency and align resources with the company’s long-term vision.
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