Pharma Shares Pop After Securing $100M Of Financing

By: Tomas Ronolski - AllPennyStocks.com News

Wednesday, June 12, 2024

A California-based healthcare company gained a lot of attention from traders on Wednesday after it was announced that the company secured a 5-year term of $100M in royalty-based financing. According to the release, the company intends to use the funds to repay the outstanding amount of its existing senior secured loan provided by Oramed Pharmaceuticals Inc., which is roughly $85 million.

Shares of Scilex Holding Company (Nasdaq:SCLX) rallied strongly on the news, with traders pushing shares up to $1.56/share (+17.29%) at the early session high. This move was a strong continuation of the success this stock has had over the last few weeks.

Scilex Holding Company focuses on acquiring, developing, and commercializing non-opioid pain management products for the treatment of acute and chronic pain. Its commercial products include ZTlido (lidocaine topical system) 1.8% (ZTlido), a prescription lidocaine topical product for the relief of neuropathic pain associated with postherpetic neuralgia (PHN), which is a form of post-shingles nerve pain; ELYXYB, a ready-to-use oral solution for the acute treatment of migraine with or without aura in adults; and GLOPERBA, a liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults.

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