PALO ALTO, Calif. - Scilex Holding Company (NASDAQ: SCLX), a company specializing in non-opioid pain management products, announced preliminary unaudited financial results for June and the second quarter of 2024, showing significant sales growth for its product ZTlido®.
The company reported that ZTlido® net sales for June reached between $7.5 million and $9.0 million, marking an increase of roughly 70% to 104% over the same period last year. For the quarter ending June 30, 2024, ZTlido® sales were between $15.8 million and $17.5 million, up 28% to 42% from the previous year.
Total product net sales for June also saw a substantial rise, with figures ranging from $7.8 million to $9.5 million, representing a 77% to 116% growth compared to June 2023. Quarterly total product net sales followed suit, increasing by 30% to 44%, with sales reaching between $16.4 million and $18.2 million.
Jaisim Shah, CEO and President of Scilex, attributed the growth to the expansion of ZTlido® across all target market segments and anticipates continued sales improvement throughout the year for other products like ELYXYB® and Gloperba®.
Despite the positive sales performance, Scilex reported a net loss for the quarter ranging from $15.0 million to $20.0 million, which is, however, an improvement from the $26.6 million loss incurred during the same quarter last year. Operating expenses for the quarter were also down, ranging from $23.0 million to $26.0 million, compared to $31.2 million from the previous year.
The company's cash and cash equivalents stood at $7.0 million to $10.0 million as of June 30, 2024, a decrease from $34.1 million a year earlier. Accounts receivable were reported between $38.0 million and $40.0 million, up from $27.6 million as of June 30, 2023.
Scilex cautioned that these figures are preliminary and subject to change upon completion of a full review. The company's independent auditor has not yet reviewed or audited these results, and actual outcomes may differ materially from these preliminary estimates.
This report is based on a press release statement from Scilex Holding Company.
In other recent news, Scilex Holding Company, a biopharmaceutical firm, recently received a $10 million non-refundable deposit from FSF 33433 LLC, aiding in fulfilling its financial obligation to Oramed Pharmaceuticals (NASDAQ:ORMP) Inc.
In the realm of product development, Scilex published positive Phase 3 trial results for SP-102, a potential first FDA-approved corticosteroid for epidural injections, indicating significant pain reduction for sciatica patients. Moreover, the company launched GLOPERBA®, the first oral liquid medication for gout flare prevention in the U.S., and secured FDA approval for its commercial manufacturing.
Scilex also reached a settlement in a patent lawsuit with Takeda Pharmaceuticals over Gloperba. Analysts from H.C. Wainwright have adjusted their outlook on Scilex shares, reducing the price target while maintaining a Buy rating.
Furthermore, Scilex secured an agreement for a registered direct offering involving the sale of 15 million common stock shares, anticipating gross proceeds of approximately $15 million. These are among the recent developments that continue to shape the trajectory of Scilex Holding Company.
InvestingPro Insights
Scilex Holding Company (NASDAQ: SCLX) has been making headlines with its robust sales growth, particularly for its flagship product ZTlido®. Investors following the company's trajectory will find the following InvestingPro data and tips insightful for understanding its financial health and market performance.
InvestingPro Data shows a market capitalization of $233.76 million, indicating the company's size and market value as of the last twelve months ending Q1 2024. With a negative P/E ratio of -1.51, Scilex's earnings do not currently justify its share price, which is not uncommon for firms investing heavily in growth or facing temporary setbacks. Moreover, the company's revenue has grown by 12.54% over the last twelve months, a positive sign that aligns with the reported sales increase for ZTlido®.
On the performance front, Scilex has experienced a significant return over the last week, month, and three months, with price total returns of 8.12%, 78.7%, and 22.93%, respectively. These figures suggest a strong recent uptrend in the company's share price, which may catch the attention of momentum investors.
Still, it is important to note a couple of InvestingPro Tips that might concern investors: Scilex may have trouble making interest payments on its debt, and its short-term obligations exceed its liquid assets. These factors highlight potential liquidity and solvency risks that could impact the company's financial stability.
While the company's immediate financial results show promise, analysts do not anticipate Scilex being profitable this year, and it has not been profitable over the last twelve months. Additionally, Scilex does not pay a dividend to shareholders, which may influence the investment decisions of income-focused investors.
For readers interested in a deeper dive into Scilex's financials and future prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/SCLX. Subscribers can utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights to inform their investment strategies.
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