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Scilex clears debt, strengthens financial position

EditorIsmeta Mujdragic
Published 03/19/2024, 10:06 AM
© REUTERS/Ammar Awad
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PALO ALTO, Calif. - Scilex Holding Company (NASDAQ:SCLX), a company specializing in non-opioid pain management solutions, announced it has fully repaid its convertible debentures and made a significant early payment on its senior secured promissory note.

The complete repayment of approximately $1.3 million in convertible debentures to YA II PN, Ltd., commonly known as Yorkville, was originally issued in March 2023. Additionally, the company has voluntarily made an early payment of $15 million on the note issued to Oramed Pharmaceuticals Inc . (NASDAQ:ORMP) in September 2023.

Jaisim Shah, CEO and President of Scilex, expressed that this financial move marks a pivotal moment for the company, demonstrating its commitment to growth and the ability to leverage new opportunities in the acute and chronic pain treatment markets, particularly as a response to the opioid crisis. Shah emphasized the company's improved financial standing, which is expected to support further collaborations, enhance commercialization efforts, and facilitate the introduction of additional innovative opioid-sparing treatments.

Scilex's portfolio includes ZTlido® for neuropathic pain associated with postherpetic neuralgia, ELYXYB® for acute migraine treatment in adults, and Gloperba®, an anti-gout medication set to launch in the first half of 2024. The company also has several product candidates in various stages of clinical development, including SP-102 (SEMDEXA™), which has completed a Phase 3 study, SP-103 for chronic neck pain, and SP-104 for fibromyalgia, with a Phase 2 clinical trial expected to commence in 2024.

The company's strategic financial management is aimed at strengthening its market position and advancing patient outcomes in pain management without the use of opioids. Scilex Holding Company, headquartered in Palo Alto, California, remains focused on addressing unmet needs in pain management and improving patient care.

The information in this article is based on a press release statement from Scilex Holding Company.

InvestingPro Insights

In light of the recent financial developments at Scilex Holding Company, it's pertinent to look at the financial health and market performance of Oramed Pharmaceuticals Inc. (NASDAQ:ORMP), which received a substantial early payment on its note. Oramed, known for its innovative oral drug delivery systems, holds a market capitalization of approximately $113.45 million. This is a key indicator of the company's size and a factor in its ability to attract investors.

One of the InvestingPro Tips highlights that Oramed Pharmaceuticals is trading at a low Price-to-Earnings (P/E) ratio relative to near-term earnings growth, sitting at 20.58. This suggests that the company might be undervalued based on its earnings outlook, which could be of interest to value investors. Additionally, the company's liquid assets exceed short-term obligations, indicating financial stability and the capability to manage its immediate financial responsibilities without strain.

From the perspective of stock performance, Oramed has experienced a strong return over the last three months, with a 24.89% price total return, reflecting positive investor sentiment. However, it's also essential to note that analysts do not anticipate the company will be profitable this year, which could be a concern for potential investors looking for immediate returns. For those interested in deeper analysis, there are 9 additional InvestingPro Tips available at: https://www.investing.com/pro/ORMP.

For readers considering an investment in Oramed or seeking to understand its financial outlook in greater detail, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where you can access a comprehensive set of financial metrics and professional insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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