Holding Company Shares Rally Following Board Of Directors Commentary

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Wednesday, October 16, 2024

A U.S. pharmaceutical holding company is stealing the show so far during the mid-week session following an announcement that the company’s board of directors has authorized the company’s management team to look for “ways to maximize the value” of its Scilex Pharma unit. According to the release, this could include spinning off the unit or conducting a public offering of securities of Scilex Pharma outside of the U.S.

Traders were quick to snatch up shares of Scilex Holding Company (Nasdaq:SCLX), with shares of the small cap reaching up to $1.07/share (+32.43%) at the early session high. 

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. ZTlido (lidocaine topical system) 1.8% is a prescription lidocaine topical product approved by the U.S. Food and Drug Administration for the relief of neuropathic pain associated with post-herpetic neuralgia. The company has acquired two FDA approved non-opioid pain products, GLOPERBA and ELYXYB, for the treatment of gout in adults and oral solution for the acute treatment of migraine, with or without aura, in adults. The  product candidates include SP-102 (10 mg, dexamethasone sodium phosphate viscous gel) (SEMDEXA TM), a Phase 3, novel, viscous gel formulation of a widely used corticosteroid for epidural injections to treat lumbosacral radicular pain, or sciatica, SP-103 (lidocaine topical system) 5.4%, a Phase 2, next-generation, triple-strength formulation of ZTlido, for the treatment of chronic neck pain, and SP-104 (4.5 mg, a novel low-dose delayed-release naltrexone hydrochloride capsules) being developed for the treatment of fibromyalgia.

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