© REUTERS/Ammar Awad
PALO ALTO, California – Scilex Holding Company (NASDAQ:SCLX), a non-opioid pain management solutions company, announced that it has fully redeemed its convertible notes and made a significant prepayment on its senior secured note .
The full redemption of approximately $1.3 million in convertible notes to YA II PN, Ltd., commonly known as Yorkville, was originally issued in March 2023. Additionally, the company voluntarily made an upfront payment of $15 million on the bond issued to Oramed Pharmaceuticals Inc . (NASDAQ:) in September 2023.
Jaisim Shah, CEO and President of Scilex, said this financial move marks a pivotal moment for the company, demonstrating its commitment to growth and ability to capitalize on new opportunities in the acute and chronic pain treatment markets, in particularly as a response to the opioid crisis. Shah highlighted the company’s improving financial position, which is expected to support further collaborations, enhance commercialization efforts and facilitate the introduction of additional innovative opioid-sparing treatments.
Scilex’s portfolio includes ZTlido® for neuropathic pain associated with postherpetic neuralgia, ELYXYB® for the treatment of acute migraine in adults, and Gloperba®, an anti-gout drug scheduled to launch in the first half of 2024. The company also has several product candidates in various stages of clinical development, including SP-102 (SEMDEXA™), which has completed a Phase 3 study, SP-103 for chronic neck pain, and SP-104 for fibromyalgia, with initiation of a Phase 2 clinical trial expected in 2024.
The company’s strategic financial management aims to strengthen its market position and improve patient outcomes in pain management without the use of opioids. Scilex Holding Company, headquartered in Palo Alto, California, continues to focus on addressing unmet needs in pain management and improving patient care.
The information in this article is based on a press release from Scilex Holding Company.
Insights on InvestingPro
In light of Scilex Holding Company’s recent financial developments, it is worth examining the financial health and market performance of Oramed Pharmaceuticals Inc. (NASDAQ:ORMP), which received a substantial prepayment on its note. Oramed, known for its innovative oral drug delivery systems, holds a market capitalization of approximately $113.45 million. This is a key indicator of the company’s size and a factor in its ability to attract investors.
One of Professional investment tips points out that Oramed Pharmaceuticals is trading at a low price-to-earnings (P/E) ratio relative to near-term earnings growth, sitting at 20.58. This suggests that the company may be undervalued based on its earnings outlook, which could be of interest to valued investors. Additionally, the company’s cash exceeds its short-term obligations, indicating financial stability and the ability to handle its immediate financial responsibilities without strain.
From a stock performance perspective, Oramed has recorded a strong return over the past three months, with a total price return of 24.89%, reflecting positive investor sentiment. However, it is also essential to note that analysts do not expect the company to be profitable this year, which could be a concern for potential investors looking for immediate returns. For those interested in a more in-depth analysis, there are 9 others Professional investment tips available at: https://www.investing.com/pro/ORMP.
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