Scilex Holding Company Partners with New National Distributor, Endeavor Distribution LLC.
Scilex Holding Company (Nasdaq: SCLX), focused on non-opioid pain management products, announced a new distribution agreement with Endeavor Distribution Endeavor, with over 10 years of logistics experience, will distribute Scilex's products nationally.
This agreement aims to enhance the commercialization of Scilex's three non-opioid products, ZTlido, ELYXYB, and Gloperba, by leveraging Endeavor's expertise in logistics and distribution. CEO Jaisim Shah emphasized that this partnership is part of Scilex's strategy to accelerate growth and successfully launch their products to specialized point-of-care customers.
- Scilex has a new distribution agreement with Endeavor, enhancing national distribution capabilities.
- Endeavor brings over 10 years of logistics and distribution experience.
- The partnership aims to accelerate the commercialization of Scilex’s non-opioid products.
- Scilex continues to implement its strategy to expand logistics and distribution for its commercial products.
- None.
Insights
Market Research Analyst Analysis
The partnership between Scilex Holding Company and Endeavor Distribution LLC has several implications for both the company and its stakeholders. First, it's important to recognize Endeavor's established reputation in logistics and distribution. This partnership can potentially enhance Scilex's distribution efficiency, providing better market reach and operational capabilities.
From a market share perspective, the ability to distribute non-opioid pain management products nationwide allows Scilex to tap into new and existing customer bases more effectively. This could translate into higher sales volumes and improved market presence in the non-opioid pain management sector, which is a growing market given the increasing scrutiny on opioid prescriptions. This partnership is strategically aligned with their growth objectives.
However, there are also challenges to consider. The non-exclusive nature of the agreement means that Scilex is not the sole beneficiary of Endeavor’s services. Competitors may also leverage Endeavor's distribution capabilities, potentially diluting Scilex's competitive advantage. Additionally, the actual impact on sales and market penetration will depend on effective execution, marketing strategies and how well both companies collaborate to meet customer needs.
Overall, this partnership is geared toward accelerating Scilex's commercialization efforts and expanding its market footprint, which could be very positive for the company if managed well.
Financial Analyst Analysis
From a financial perspective, the partnership with Endeavor Distribution LLC can be seen as a strategic move that aligns with Scilex's growth trajectory. While financial specifics of the agreement weren't disclosed, the anticipated increased distribution capabilities should ideally lead to higher revenue generation as product availability increases.
Given the current market sentiment and the sensitivity surrounding non-opioid alternatives, Scilex's move can be interpreted as an investment in its distribution infrastructure, which is typically a positive indicator for long-term growth. However, investors should monitor subsequent quarterly earnings to assess the real impact on revenue and profitability. The success of this partnership will likely be reflected in
One potential downside is the cost associated with scaling up logistics. If not managed well, these costs could offset the anticipated benefits, affecting net income. Investors would do well to keep an eye on management’s commentary in future earnings calls regarding the financial performance of this partnership.
In essence, while the partnership sets a positive tone for Scilex's growth, its financial impact will be contingent on effective execution and integration of distribution strategies.
PALO ALTO, Calif., June 20, 2024 (GLOBE NEWSWIRE) -- Scilex Holding Company (Nasdaq: SCLX, “Scilex” or the “Company”), an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain, today announced that in anticipation of selling our commercially available products to new and current special customers, Scilex has entered into a non-exclusive distribution agreement with a well-known and highly respected distributor with over 10 years of sales excellence, Endeavor Distribution LLC. (“Endeavor”). Endeavor has logistics expertise to sell and distribute our currently marketed non-opioid products nationally.
Endeavor is an Oklahoma-owned and operated company committed to top-notch logistics and distribution service. They have been involved in logistics, warehousing, manufacturing, fulfillment center preparation, and customer service for over 10 years and will be leveraging that experience to provide our clients the best pick and pack fulfillment and other warehouse and distribution services.
“The commercialization of Scilex’s three non-opioid products continues on schedule and we anticipate growth to accelerate through this year and beyond 2024. Given our accelerated pace of product growth, we are aggressively implementing our strategy of building out additional logistics and distribution for our commercial products. Signing an additional distribution partner at this point sets the stage for a successful and aggressive product launch into specialized point of care customers. We will continue to carefully refine our launch strategy and selectively add distribution partners who serve our shared customers with excellence,” said Jaisim Shah, CEO and President of Scilex.
For more information on Scilex Holding Company, refer to www.scilexholding.com
For more information on ZTlido® including Full Prescribing Information, refer to www.ztlido.com.
For more information on ELYXYB®, including Full Prescribing Information, refer to www.elyxyb.com.
For more information on Gloperba®, including Full Prescribing Information, refer to www.gloperba.com.
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About Scilex Holding Company
Scilex Holding Company is an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain. Scilex targets indications with high unmet needs and large market opportunities with non-opioid therapies for the treatment of patients with acute and chronic pain and are dedicated to advancing and improving patient outcomes. Scilex’s commercial products include: (i) ZTlido® (lidocaine topical system)
In addition, Scilex has three product candidates: (i) SP-102 (10 mg, dexamethasone sodium phosphate viscous gel) (“SEMDEXA™” or “SP-102”), a novel, viscous gel formulation of a widely used corticosteroid for epidural injections to treat lumbosacral radicular pain, or sciatica, for which Scilex has completed a Phase 3 study and was granted Fast Track status from the FDA in 2017; (ii) SP-103 (lidocaine topical system)
Scilex Holding Company is headquartered in Palo Alto, California.
Forward-Looking Statements
This press release and any statements made for and during any presentation or meeting concerning the matters discussed in this press release contain forward-looking statements related to Scilex and its subsidiaries under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements include statements regarding new distributor agreement, the exploration of potential transactions involving Semnur, the expectation that any such transactions would be available and able to be completed, the expectation that any such potential transaction will maximize the value of Semnur and SP-102 for Scilex and its stockholders, Scilex’s expectation that SP-102’s Phase 3 study represents a potential significant improvement in treatment of adult patients with lumbosacral radicular pain (sciatica), statements regarding SP-102 (SEMDEXA™), if approved by the FDA, including the potential market and demand of SP-102 (SEMDEXA™), Scilex’s expectation that SP-102 (SEMDEXA™) would be an important addition to treatment options for patients with lumbosacral radicular pain and Scilex’s development and commercialization plans.
Risks and uncertainties that could cause Scilex’s actual results to differ materially and adversely from those expressed in our forward-looking statements, include, but are not limited to: risks associated with Scilex’s ability to engage in any potential transaction involving Semnur and SP-102, including the ability to conduct a spin-off, merger, dividend, reclassification or other similar transaction; risks associated with the unpredictability of trading markets and whether a market will be established for Scilex’s common stock; general economic, political and business conditions; risks related to COVID-19 (and other similar disruptions); the risk that the potential product candidates that Scilex develops may not progress through clinical development or receive required regulatory approvals within expected timelines or at all; risks relating to uncertainty regarding the regulatory pathway for Scilex’s product candidates; the risk that Scilex will be unable to successfully market or gain market acceptance of its product candidates; the risk that Scilex’s product candidates may not be beneficial to patients or successfully commercialized; the risk that Scilex has overestimated the size of the target patient population, their willingness to try new therapies and the willingness of physicians to prescribe these therapies; risks that the outcome of the trials and studies for SP-102, SP-103 or SP-104 may not be successful or reflect positive outcomes; risks that the prior results of the clinical and investigator-initiated trials of SP-102 (SEMDEXA™), SP-103 or SP-104 may not be replicated; regulatory and intellectual property risks; and other risks and uncertainties indicated from time to time and other risks described in Scilex’s most recent periodic reports filed with the Securities and Exchange Commission, including Scilex’s Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent Quarterly Reports on Form 10-Q that the Company has filed or may file, including the risk factors set forth in those filings. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and Scilex undertakes no obligation to update any forward-looking statement in this press release except as may be required by law.
Contacts:
Investors and Media
Scilex Holding Company
960 San Antonio Road
Palo Alto, CA 94303
Office: (650) 516-4310
Email: investorrelations@scilexholding.com
Website: www.scilexholding.com
SEMDEXA™ (SP-102) is a trademark owned by Semnur Pharmaceuticals, Inc., a wholly-owned subsidiary of Scilex Holding Company. A proprietary name review by the FDA is planned.
ZTlido® is a registered trademark owned by Scilex Pharmaceuticals Inc., a wholly-owned subsidiary of Scilex Holding Company.
Gloperba® is the subject of an exclusive, transferable license to Scilex Holding Company to use the registered trademark.
ELYXYB® is a registered trademark owned by Scilex Holding Company.
All other trademarks are the property of their respective owners.
© 2024 Scilex Holding Company All Rights Reserved.
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