PALO ALTO, Calif.—Ji Henry, the Executive Chairperson of Scilex Holding Co (NASDAQ:SCLX), has recently acquired 8,888 shares of the company's common stock. The shares were purchased on October 31 at an average price of $0.9396 per share, totaling approximately $8,351. Following this transaction, Henry now directly owns 320,161 shares of Scilex. Additionally, Henry holds indirect ownership through various entities, including BioVintage, Inc. and family trusts, bringing the total number of shares under his control to over 360,000.
In other recent news, Scilex Holding Company has been making significant advancements. The company has gained FDA approval to proceed with phase III trials of SP-103, a product aimed at treating chronic neck pain. Scilex's research projects peak annual sales of SP-103 to reach $1.2 billion by the 6th year following its launch. Additionally, Scilex is exploring strategic options for its subsidiary, Scilex Pharmaceuticals, potentially considering a spinoff or public listing outside the United States.
H.C. Wainwright has maintained a Buy rating on Scilex, citing recent financial maneuvers, including the closure of a $50 million convertible note offering. The funds from this offering will be used to repay outstanding balances and support general corporate activities.
In financial developments, Scilex reported an increase in Q3 net sales for its non-opioid pain management products, with ZTlido's sales reaching between $11.0 million and $13.0 million. The company also extended a payment deadline in its agreement with Oramed Pharmaceuticals (NASDAQ:ORMP) and fulfilled a $10 million loan obligation through product delivery to FSF 33433 LLC.
These recent developments underline Scilex's commitment to improving patient outcomes in pain management without reliance on opioids.
InvestingPro Insights
The recent insider purchase by Ji Henry comes at a time when Scilex Holding Co (NASDAQ:SCLX) is facing financial challenges. According to InvestingPro data, the company's market capitalization stands at $122.5 million, with a revenue of $50.83 million in the last twelve months as of Q2 2024. Despite a quarterly revenue growth of 30.11% in Q2 2024, Scilex is not currently profitable, with an operating income margin of -195.02%.
InvestingPro Tips highlight that Scilex's valuation implies a strong free cash flow yield, which could be a positive sign for investors looking at the company's long-term potential. However, it's important to note that the company's short-term obligations exceed its liquid assets, indicating potential liquidity concerns.
The stock price has fallen significantly over the last three months, with a -40.77% total return. This decline might have influenced Henry's decision to increase his stake, possibly viewing the current price as an attractive entry point. Analysts do not anticipate the company will be profitable this year, which aligns with the negative earnings per share of -$1.49 reported for the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 6 more InvestingPro Tips available for Scilex Holding Co, which could provide valuable context for understanding the company's financial position and future prospects.
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