Scilex Holding (SCLX) Gets a ‘Buy’ Rating and $14 Price Target: SEMDEXA Could Be a Blockbuster
Alliance Global Partners has initiated coverage on Scilex Holding Company (SCLX), a company focused on non-opioid pain treatment solutions, with a resounding ‘Buy’ rating and a price target of $14. This optimistic outlook stems from the immense potential of Scilex’s flagship drug candidate, SEMDEXA, a non-opioid injectable corticosteroid gel specifically designed to treat lumbosacral radicular pain, more commonly known as sciatica.
Scilex’s board of directors has recently authorized management to explore strategic options, including a potential spinoff or dividend distribution of the company’s common stock. They are also considering a public listing of Scilex Pharma’s securities on exchanges outside the U.S., such as Hong Kong, or other strategic transactions. These initiatives signal a proactive approach to maximizing shareholder value and expanding the company’s reach.
Scilex currently boasts three FDA-approved products:
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ZTlido:
A 1.8% lidocaine topical product targeting neuropathic pain associated with postherpetic neuralgia or shingles pain.*
Elyxyb:
An oral solution containing celecoxib for the acute treatment of migraine.*
Gloperba:
A colchicine USP formulation for painful gout flares in adults.However, the real star of the show is SEMDEXA, a potential game-changer for sciatica treatment. Currently, the standard approach involves off-label use of epidural steroid injections, which are administered over 12 million times a year. SEMDEXA, if approved, could become the new standard of care. It possesses the potential to reach blockbuster status, generating over $1 billion in annual sales at its peak.
Scilex is poised to initiate a Phase 3 safety trial for SEMDEXA in the fourth quarter of 2024. A possible FDA marketing application submission is planned for 2026, with a potential launch in 2027 if approved. The analyst predicts that SEMDEXA could generate an impressive $1.2 billion in sales by 2030, cementing its position as a significant revenue driver for Scilex.
The recent news has sent Scilex stock soaring, up 6.5% at 86 cents at last check on Wednesday. This positive market reaction reflects the growing confidence in Scilex’s future, particularly the potential of SEMDEXA to revolutionize sciatica treatment and drive significant growth for the company.