Scilex Holding Company Provides Certain Preliminary Unaudited Financial Results for the Month Ended June 30, 2024 and Second Quarter of 2024

Rhea-AI Summary

Scilex Holding Company, under the ticker SCLX, has released its preliminary unaudited financial results for June 2024 and the second quarter of 2024. ZTlido net sales in June 2024 grew by 70% to 104% year-over-year, with quarterly growth between 28% to 42%. Total product net sales for June 2024 increased 77% to 116% year-over-year, while quarterly growth ranged from 30% to 44%. ZTlido gross sales for June reached $22 million to $26 million.

Cash reserves dropped to $7 million to $10 million from $34.1 million in the previous year. Accounts receivable increased to $38 million to $40 million from $27.6 million. Operating expenses decreased to $23 million to $26 million from $31.2 million, and net loss narrowed to $15 million to $20 million from $26.6 million last year.

This data is preliminary and unaudited, and actual results may vary significantly.

Positive

• ZTlido net sales for June 2024 increased by 70% to 104% year-over-year.
• Total product net sales for June 2024 increased by 77% to 116% year-over-year.
• ZTlido gross sales for June 2024 reached $22 million to $26 million.
• Operating expenses for Q2 2024 decreased to $23 million to $26 million from $31.2 million.
• Net loss for Q2 2024 narrowed to $15 million to $20 million from $26.6 million last year.

Negative

• Cash reserves dropped to $7 million to $10 million from $34.1 million.

Insights

Financial Analyst

The latest financial update from Scilex Holding Company provides an intriguing glimpse into the company's recent performance. Notably, net sales for ZTlido® in June 2024 surged by 70 to 104 compared to the same period last year. For the entire quarter, ZTlido® sales rose by 28 to 42. Such growth rates are impressive and indicate a strong demand for the product. Additionally, total product net sales for the month and quarter also showed robust growth, ranging from 77 to 116 and 30 to 44, respectively. These figures suggest that Scilex's overall product portfolio is performing well in the market.

However, it is essential to cautiously consider the company's cash position. While the growth in sales is encouraging, the $7.0 million to $10.0 million in cash and cash equivalents reported as of June 2024 is significantly lower than the $34.1 million held in June 2023. This decline might point towards aggressive reinvestment strategies or higher operational expenses. Investors should monitor how these funds are being utilized to sustain long-term growth.

Scilex's operating expenses have decreased, ranging from $23.0 million to $26.0 million for the quarter, compared to $31.2 million last year. This reduction in expenses is a positive indicator of improved operational efficiency. Furthermore, net losses have also narrowed to $15.0 million to $20.0 million from $26.6 million, reflecting better financial management.

In summary, while the growth trends are promising, the reduced cash reserves might pose a concern. Investors should keep an eye on how Scilex manages its financial health in the upcoming quarters.

Market Research Analyst

Scilex's latest financial update underscores significant revenue growth for ZTlido® and other non-opioid pain management products. The reported 70 to 104 increase in ZTlido® net sales for June and 28 to 42 for the quarter highlights the product's expanding market presence. The company's strategy to focus on non-opioid solutions resonates well with the ongoing opioid crisis, aligning with a broader shift towards safer pain management options. The increasing adoption of ZTlido® is indicative of its perceived value and effectiveness among healthcare providers and patients.

Moreover, the growth in total product net sales signifies effective market penetration across Scilex's portfolio. This expansion could be driven by successful marketing campaigns and a growing awareness of the benefits of non-opioid pain treatments.

However, it's important to remain attentive to the competitive landscape. Many companies are vying for market share in the non-opioid pain management domain and Scilex's ability to maintain and grow its market position will be crucial.

In conclusion, Scilex appears to be on a positive trajectory in terms of sales growth and market acceptance, but sustained success will require continual innovation and competitive vigilance.

• ZTlido^® net sales for the month of June 2024 grew in the range of 70% to 104%, compared to the same period last year.
• ZTlido^® net sales for the quarter ended June 2024 grew in the range of 28% to 42%, compared to the same period last year.
• Total product net sales for the month of June 2024 grew in the range of 77% to 116%, compared to the same period last year.
• Total product net sales for the quarter ended June 2024 grew in the range of 30% to 44%, compared to the same period last year.

PALO ALTO, Calif., July 01, 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 provided certain preliminary unaudited financial results for the month ended June 30, 2024 and quarter ended June 30, 2024.

“For the month of June 2024, sales were highlighted by year-over-year growth trends improving in the second half of the second quarter and ZTlido^® is surpassing in the month of June with the gross sales in the range of $22.0 million to $26.0 million mark for the first time,” said Jaisim Shah, Chief Executive Officer and President of Scilex. “In addition to ZTlido^® expansion across all target market segments, we continue to expect improving sales trends throughout this year for ELYXYB^® and our launch of Gloperba^® as we broaden education and awareness around these complementary and standalone non-opioid solutions for managing acute pain.”

The Company estimates that:

• ZTlido net sales for the month ended June 30, 2024 were in the range of $7.5 million to $9.0 million, compared to $4.4 million for the same period last year, representing growth in the range of approximately 70% to 104%.
• ZTlido net sales for the quarter ended June 30, 2024 were in the range of $15.8 million to $17.5 million, compared to $12.3 million for the same period last year, representing growth in the range of approximately 28% to 42%.
• Total product net sales for the month ended June 30, 2024 were in the range of $7.8 million to $9.5 million, compared to $4.4 million for the same period last year, representing growth in the range of approximately 77% to 116%.
• Total product net sales for the quarter ended June 30, 2024 were in the range of $16.4 million to $18.2 million, compared to $12.6 million for the same period last year, representing growth in the range of approximately 30% to 44%.
• Cash and cash equivalents as of June 30, 2024 were in the range of $7.0 million to $10.0 million, compared to $34.1 million as of June 30, 2023.
• Accounts receivable as of June 30, 2024 were in the range of $38.0 million to $40.0 million, compared to $27.6 million as of June 30, 2023.
• Operating expenses for the quarter ended June 30, 2024 were in the range of $23.0 million to $26.0 million, compared to $31.2 million for the same period last year.
• Net loss for the quarter ended June 30, 2024 was in the range of $15.0 million to $20.0 million, compared to $26.6 million for the same period last year.

This preliminary financial data has been prepared by and is the responsibility of Scilex. Scilex has not fully completed its review of these preliminary financial results for the month and quarter ended June 30, 2024. Scilex’s independent auditor has not reviewed or audited these preliminary estimated financial results. Scilex’s actual results may differ materially from these preliminary financial results and may be outside the estimated ranges.

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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info@scilexholding.com

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) 1.8%, a prescription lidocaine topical product approved by the U.S. Food and Drug Administration (the “FDA”) for the relief of neuropathic pain associated with postherpetic neuralgia, which is a form of post-shingles nerve pain; (ii) ELYXYB^®, a potential first-line treatment and the only FDA-approved, ready-to-use oral solution for the acute treatment of migraine, with or without aura, in adults; and (iii) Gloperba^®, the first and only liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults.

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) 5.4%, (“SP-103”), a next-generation, triple-strength formulation of ZTlido, for the treatment of chronic neck pain and for which Scilex has recently completed a Phase 2 trial in low back pain. SP-103 has been granted Fast Track status from the FDA in low back pain; and (iii) SP-104 (4.5 mg, low-dose naltrexone hydrochloride delayed-release capsules) (“SP-104”), a novel low-dose delayed-release naltrexone hydrochloride being developed for the treatment of fibromyalgia, for which Phase 1 trials were completed in the second quarter of 2022.

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 the Company’s preliminary unaudited financial results for the month and quarter ended June 30, 2024, the Company’s outlook, goals and expectations for 2024, and the Company’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 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.

FAQ

What were the ZTlido net sales for June 2024?

ZTlido net sales for June 2024 were in the range of $7.5 million to $9.0 million, representing growth of 70% to 104% year-over-year.

What was the range of total product net sales for June 2024?

Total product net sales for June 2024 were between $7.8 million and $9.5 million, growing 77% to 116% compared to the same period last year.

How much did ZTlido gross sales reach in June 2024?

ZTlido gross sales for June 2024 reached between $22 million and $26 million.

What was the estimated net loss for Scilex in Q2 2024?

The estimated net loss for Scilex in Q2 2024 was between $15 million and $20 million.

How much did Scilex's cash reserves drop by June 2024?

Scilex's cash reserves dropped to between $7 million and $10 million by June 2024, down from $34.1 million in the previous year.