PALO ALTO, Calif. - Scilex Holding Company (NASDAQ:SCLX), a company specializing in non-opioid pain management therapies, has announced preliminary unaudited financial results for the third quarter ending September 30, 2024. The company reported that net sales of ZTlido, its lidocaine topical product, were between $11.0 million and $13.0 million, marking an increase from $10.1 million in the same period the previous year. This growth represents an estimated 9% to 29% increase.
Total net sales of the company's products for the quarter were also up, ranging from $12.0 million to $14.0 million, indicating a 19% to 39% rise compared to the $10.1 million reported in the third quarter of the previous year. These figures reflect the company's ongoing efforts to expand its portfolio of pain management solutions.
Scilex's commercial offerings include ZTlido for neuropathic pain associated with postherpetic neuralgia, ELYXYB for acute migraine treatment in adults, and Gloperba for the prophylaxis of gout flares. The company is also progressing with product candidates such as SP-102, a corticosteroid gel for sciatica pain, which has completed Phase 3 trials and received Fast Track designation from the FDA.
Despite the positive preliminary results, Scilex has cautioned that these figures are not yet finalized and are subject to change upon further review. The independent auditor has not reviewed or audited the preliminary estimated financial results, and the actual results may materially differ from these preliminary figures.
Investors are reminded that the information provided is based on a press release statement from Scilex Holding Company and that the company's outlook is forward-looking and subject to various risks and uncertainties. These include market conditions, regulatory approvals, market acceptance of products, and the potential impact of COVID-19 or other disruptions.
Scilex Holding Company continues to focus on addressing unmet needs in pain management with non-opioid products, aiming to improve patient outcomes and capitalize on large market opportunities.
In other recent news, Scilex Holding has been actively managing its financial obligations and making strides in non-opioid pain management. The company recently secured a $50 million convertible note offering with key stakeholders such as Murchinson, 3i (LON:III) LP, and Oramed Pharmaceuticals (NASDAQ:ORMP), Inc. This move is aimed at refinancing existing debt and bolstering long-term growth. Additionally, Scilex has extended a payment deadline in its agreement with Oramed Pharmaceuticals.
Scilex has also fulfilled a $10 million loan obligation through product delivery to FSF 33433 LLC, supplying specified quantities of its ZTlido product. In a separate transaction, institutional investors, including Oramed, are expected to acquire an 8% royalty on net sales of certain Scilex products, including ZTlido, for a total purchase price of $5 million.
The U.S. Food and Drug Administration has approved updates to the labeling of GLOPERBA®, a gout treatment, for precision dosing. This could potentially improve patient outcomes and adherence. Additionally, Scilex has received Drug Distributor Accreditation from the National Association of Boards of Pharmacy, enhancing its credentials in the pain management sector. These are the recent developments shaping the trajectory of Scilex Holding Company.
InvestingPro Insights
Scilex Holding Company's (NASDAQ:SCLX) preliminary Q3 2024 results show promising growth in net sales, but a deeper look at the company's financials reveals a more complex picture. According to InvestingPro data, Scilex's revenue for the last twelve months as of Q2 2024 stood at $50.83 million, with a notable revenue growth of 30.11% in Q2 2024 compared to the previous quarter. This aligns with the positive trend seen in the preliminary Q3 results.
However, despite the sales growth, InvestingPro Tips highlight that Scilex is not currently profitable. The company's operating income for the last twelve months was -$99.14 million, with an operating income margin of -195.02%. This suggests that while Scilex is expanding its top line, it's still facing challenges in translating sales growth into profitability.
Another InvestingPro Tip indicates that Scilex's valuation implies a strong free cash flow yield, which could be attractive to investors looking for potential value in the biotech sector. However, it's worth noting that the company's stock price has fallen significantly over the last three months, with a 51.29% decline according to InvestingPro data.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide further context to Scilex's financial situation and market performance. There are 6 additional InvestingPro Tips available for SCLX, which could offer valuable insights for those considering an investment in this non-opioid pain management company.
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