Zacks Small Cap Analysis – SCLX Makes Transfer to Increase Shareholder Worth – Cyber Tech

By Brad Sorensen, CFA

NASDAQ:SCLX

READ THE FULL SCLX RESEARCH REPORT

Scilex Holding Firm (NASDAQ:SCLX) is a revenue-generating firm that’s centered on addressing one of many greatest points dealing with humanity right this moment—that of the overuse of opioids. Scilex is concentrated on creating non-opioid ache administration merchandise that present the aid sufferers so desperately want, whereas avoiding the debilitating dependancy that usually comes with the usage of opioids. Roughly 112,000 Individuals died in 2023 from overdoses and there now we have little doubt {that a} good variety of these concerned opioid use sooner or later to cut back bodily ache of varied varieties.

Scilex introduced that its subsidiary, Semnur, whose lead product is SP-102 and is described beneath, and a SPAC generally known as the Denali Capital Acquisition Corp (DECA-NASDAQ) have come to a merger settlement. The merger is anticipated to shut in early 2025, at which era, the corporate notes, the mixed entity will probably be spun off and start buying and selling on the Nasdaq below the image SMNR. We consider it is a optimistic improvement for shareholders that may assist to unlock worth for present shareholders of SCLX and supply the wanted capital to advance SP-102 towards the commercialization stage.

SP-102 (with the commerce identify Semdexa), is the primary non-opioid novel injectable corticosteroid gel formulation for sufferers with reasonable to extreme persistent radicular ache/sciatica, containing no preservatives, surfactants, solvents, or particulates. The corporate notes that if the drug is authorised by the FDA, it will likely be accessible in a pre-filled syringe formulation and will probably be administered as an epidural injection for the therapy of sciatica. The Scilex subsidiary, Semnur, has accomplished a Section 3 trial for SP-102, which met main and essential key secondary endpoints, reducing ache depth for over a month in sciatica sufferers and leading to statistically vital and clinically significant enchancment within the incapacity index rating whereas sustaining security corresponding to placebo. The corporate notes that this Section 3 examine represents a possible vital enchancment in therapy of grownup sufferers with lumbosacral radicular ache (sciatica), who battle with the scientific penalties of no at present FDA authorised therapies, suboptimal formulations of corticosteroids used off-label and/or extra ache and incapacity.

Sciatica is a time period used to explain a set of signs reasonably than a selected medical situation. It refers to ache that radiates alongside the trail of the sciatic nerve, which is the longest nerve within the human physique. The sciatic nerve runs from the decrease again, by the buttocks, and down every leg. Sciatica usually impacts just one aspect of the physique.

The commonest reason behind sciatica is compression or irritation of the sciatic nerve, usually resulting from a herniated or slipped disc within the lumbar backbone (decrease again). Different potential causes of sciatica embrace spinal stenosis (narrowing of the spinal canal), spondylolisthesis (a situation the place one vertebra slips over one other), piriformis syndrome (compression of the sciatic nerve by the piriformis muscle within the buttocks), and even harm to the nerve itself.

The first symptom of sciatica is ache, which may fluctuate in depth and placement however normally follows the trail of the sciatic nerve. Frequent signs and traits of sciatica embrace:

1. Sharp or capturing ache: This ache will be extreme and will really feel like an electrical shock.

2. Fixed ache: Sciatica ache will be steady or intermittent, and it usually worsens with actions like coughing or sneezing.

3. Numbness and tingling: Folks with sciatica might expertise numbness, tingling, or a “pins and needles” sensation within the affected leg or foot.

4. Weak point: Some people with sciatica might also expertise weak spot within the leg or foot on the affected aspect, making it troublesome to maneuver or bear weight.

It’s simple to see why an improved and efficient therapy that gives aid from the ache of sciatica would probably be welcomed enthusiastically by victims. The truth is, the corporate notes that, primarily based on the unbiased market analysis performed by Syneos Well being Consulting in 2020 and 2021, given the potential substantial utilization of SP-102, by the fifth yr of launch, gross sales of Semdexa in sciatica are projected to succeed in $1.5 billion to $2.0 billion yearly.

This announcement and plans for the long run that we’ve mentioned at size reinforce our perception that SCLX is poised to renew its transfer increased and that buyers proceed to underestimate the worth of the remedies the corporate at present has and is creating. We admire that the corporate is making an attempt to unlock a few of that worth by this transaction and urge buyers to try an organization that’s incomes income, rising that income in a significant means, and including to its portfolio of crucial remedies earlier than the remainder of the investing neighborhood realizes the story creating at Scilex.

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