PALO ALTO, Calif. - Scilex Holding Company (NASDAQ:SCLX), a firm specializing in non-opioid pain management solutions, has announced the launch of GLOPERBA®, the first oral liquid medication for gout flare prevention, which became available in the United States this week. GLOPERBA® is now being stocked by numerous national pharmacy chains and independent pharmacies following its market release on Monday.
Gout, an arthritic condition that affects roughly 9.2 million Americans, has been on the rise, leading to a growing demand for effective treatments. The U.S. gout treatment market is expected to reach $2 billion by 2028. GLOPERBA® offers a new option for patients, with a Wholesale Acquisition Cost (WAC) of $595 per bottle.
Scilex's commitment to broadening access to GLOPERBA® is evident as the company is actively pursuing distribution agreements with additional pharmacy chains nationwide. This initiative is part of Scilex's broader strategy to address acute and chronic pain with innovative non-opioid treatments.
The company's portfolio also includes ZTlido® for postherpetic neuralgia pain and ELYXYB®, an oral solution for acute migraine treatment. Furthermore, Scilex has several product candidates in development, including SP-102, a corticosteroid gel for sciatica, which has completed Phase 3 trials and received Fast Track status from the FDA.
The information reported is based on a press release statement from Scilex Holding Company.
In other recent news, Scilex Holding Company has received FDA approval for the commercial manufacturing of Gloperba®, a treatment for the prevention of painful gout flares. The launch of the product is expected to cater to the growing patient population, which is estimated to be over 70% of gout patients who have comorbid conditions.
In other developments, Scilex reached a settlement in a patent lawsuit with Takeda Pharmaceuticals over Gloperba and reported suspected market manipulation activities to regulatory authorities, including the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority. H.C. Wainwright has adjusted its outlook on Scilex shares, reducing the price target to $8.00 from the prior $12.00, while maintaining a Buy rating on the stock.
Lastly, Scilex secured a definitive agreement with certain institutional investors for a registered direct offering involving the sale of 15 million shares of common stock and warrants, with anticipated gross proceeds of approximately $15 million.
InvestingPro Insights
Scilex Holding Company's recent launch of GLOPERBA® has garnered attention in the non-opioid pain management market, yet the financial health of the company presents a more complex picture. According to InvestingPro Data, Scilex has a market capitalization of $135.66 million, reflecting its size within the industry. Despite a positive revenue growth of 12.54% over the last twelve months as of Q1 2024, the company's operating income margin stands at a concerning -226.01%, indicating substantial losses relative to its revenue.
Investors should note that Scilex operates with a significant debt burden, as pointed out by one of the InvestingPro Tips, which could be a considerable risk factor. The company's short-term obligations also exceed its liquid assets, potentially impacting its ability to meet immediate financial responsibilities. Moreover, the company is not expected to be profitable this year, and it has not been profitable over the last twelve months, as highlighted by additional InvestingPro Tips.
In the last year, the company's stock price has experienced a sharp decline of 82.95%, although it has shown a strong return over the last month with a 50.25% increase. This recent uptick could be reflecting investor optimism following the launch of GLOPERBA®. However, Scilex does not pay a dividend, which might influence investment decisions for those seeking income alongside capital gains.
For investors interested in a deeper analysis, there are more InvestingPro Tips available, which can be accessed via the company-specific link (https://www.investing.com/pro/SCLX). Additionally, using the coupon code PRONEWS24 grants an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a valuable resource for informed investment decisions. With the next earnings date set for August 9, 2024, stakeholders will be keenly watching Scilex's financial performance and market strategy in the evolving landscape of pain management solutions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.