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PALO ALTO - Scilex Holding Company (NASDAQ:SCLX), a $96.64 million market cap pharmaceutical company that has seen its stock surge over 52% in the past six months, announced Thursday that its majority-owned subsidiary Semnur Pharmaceuticals has entered into a $20 million private placement agreement with an investor to advance clinical trials for its non-opioid pain treatment. According to InvestingPro analysis, the company appears undervalued at current levels.
The funding will support the second Phase 3 clinical trial of SP-102 (SEMDEXA), a dexamethasone sodium phosphate viscous gel being developed for lumbosacral radicular pain and sciatica. Under the agreement, the investor will purchase 1.25 million shares of common stock at $16 per share in the combined company following Semnur’s pending business combination with Denali Capital Acquisition Corp. While the company maintains a healthy gross margin of 70.35%, InvestingPro data shows current short-term obligations exceed liquid assets.
The company also announced leadership changes, with Jaisim Shah stepping down as Scilex’s CEO and President effective August 17, while continuing to serve on its board of directors. Henry Ji, previously Executive Chairman, has assumed the CEO and President roles at Scilex.
Shah will now focus full-time on his position as CEO and President of Semnur, which he co-founded in 2013. The leadership transition comes as Semnur prepares to become a public company through its business combination with Denali, expected to close in September 2025.
"Our team and I are proud to continue our leadership in the creation of prescription non-opioid therapeutics addressing non-opioid pain management for the millions of acute and chronic pain patients," Shah said in the press release.
Scilex’s commercial products include ZTlido, a prescription lidocaine topical system for postherpetic neuralgia; ELYXYB for migraine treatment; and Gloperba, a liquid oral colchicine formulation for gout flare prevention.
The closing of the private placement is subject to customary conditions and is expected to occur immediately following the consummation of the business combination.
In other recent news, Scilex Holding Company has made significant strides in its business operations. The company announced that the SEC has declared effective the registration statement for its proposed merger with Semnur Pharmaceuticals, a majority-owned subsidiary. This merger involves Denali Capital Acquisition Corp., and the clearance of the Form S-4 registration statement marks a crucial regulatory milestone. Additionally, Scilex amended its merger agreement with Denali Capital Acquisition Corp. to facilitate the issuance of additional Semnur common stock prior to the closing of the business combination. This amendment adjusts definitions related to the "Exchange Ratio" and "Merger Consideration," while maintaining the previously agreed 1.25-to-1 exchange ratio.
Furthermore, Scilex has released a study providing new dosing guidelines for its gout medication, GLOPERBA®. This peer-reviewed study offers critical data for dosing colchicine, particularly for patients with severe renal impairment, a common issue among gout sufferers. GLOPERBA® is recognized as the first and only liquid formulation of colchicine approved for preventing gout flares, and the study highlights its advantage in maintaining therapeutic levels, enhancing patient safety. These developments reflect Scilex’s ongoing efforts to advance its product offerings and strategic partnerships.
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