PALO ALTO, Calif. - Scilex Holding Company (NASDAQ:SCLX), a company specializing in non-opioid pain management products, has been notified by the Listing Qualifications Department of The Nasdaq Stock Market of non-compliance with Nasdaq's continued listing requirements. The notice, received on November 21, 2024, was issued due to Scilex's delay in filing its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.
The company is required to submit a plan to regain compliance with the Nasdaq Listing Rule 5250(c)(1) within 60 calendar days, by January 20, 2025. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from the original due date of the Q3 Form 10-Q, or until May 19, 2025, for Scilex to regain compliance.
Scilex has expressed its intention to file the overdue quarterly report as soon as possible to comply with the Listing Rule. However, if the company fails to submit the Q3 Form 10-Q by the January deadline, it will provide Nasdaq with a definitive plan to file promptly.
Scilex Holding Company, headquartered in Palo Alto, California, focuses on the development and commercialization of non-opioid therapies for patients with acute and chronic pain. The company's portfolio includes FDA-approved products such as ZTlido® for neuropathic pain associated with postherpetic neuralgia, ELYXYB® for acute migraine treatment in adults, and Gloperba® for gout flare prophylaxis. Additionally, Scilex is developing product candidates like SP-102, SP-103, and SP-104, targeting conditions such as sciatica, acute pain, and fibromyalgia.
The information provided in this article is based on a press release statement from Scilex Holding Company.
In other recent news, Scilex Holding Company continues to make notable strides in its operations. The company reported growth in Q3 net sales for its non-opioid pain management products, with ZTlido sales reaching between $11.0 million and $13.0 million. Scilex also reached a consensus with the FDA for a New Drug Application for SP-103, a product candidate for chronic neck pain treatment, which is projected to reach peak annual sales of $1.2 billion by the 6th year after its launch.
The company secured a $50 million convertible note offering with stakeholders including Murchinson, 3i (LON:III) LP, and Oramed Pharmaceuticals (NASDAQ:ORMP). H.C. Wainwright maintained its Buy rating on Scilex, citing the company's recent financial maneuvers. Scilex is also exploring strategic options for its subsidiary, Scilex Pharmaceuticals, potentially considering a spinoff or public listing outside the United States.
The company faces a delisting risk on Nasdaq due to its stock price falling below the minimum required bid price for continued listing. However, Scilex has stated its intention to actively monitor its stock price and explore options to regain compliance. These are the recent developments in Scilex Holding Company's operations.
InvestingPro Insights
Scilex Holding Company's recent notification of non-compliance with Nasdaq's listing requirements comes amid a challenging financial landscape for the company. According to InvestingPro data, Scilex's market capitalization stands at $72.64 million, reflecting the market's current valuation of the company.
Despite a revenue growth of 9.41% over the last twelve months as of Q2 2024, reaching $50.83 million, Scilex faces significant profitability challenges. The company's operating income margin is deeply negative at -195.02%, indicating substantial operational costs relative to revenue.
InvestingPro Tips highlight that Scilex is currently trading near its 52-week low, with the stock price experiencing a significant decline of 43.17% over the past month. This downward trend aligns with the company's recent regulatory challenges and may reflect investor concerns about its financial health and compliance status.
It's worth noting that analysts do not anticipate Scilex to be profitable this year, which could further impact investor sentiment. However, the stock's current valuation implies a strong free cash flow yield, potentially offering a silver lining for value-oriented investors.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Scilex Holding Company, providing a deeper understanding of the company's financial position and market performance.
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