Scilex Holding (SCLX) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 was $16.4 million, up 30% year-over-year, driven by increased sales of ZTlido and ELYXYB and the launch of GLOPERBA in June 2024.

• Net loss for Q2 2024 was $37.6 million, compared to $26.6 million in Q2 2023, reflecting higher non-cash expenses from derivative liabilities and fair value changes in debt instruments.

• The company continues to focus on commercializing non-opioid pain management products and advancing its late-stage pipeline, including SEMDEXA, SP-103, and SP-104.

Financial highlights

• Net revenue for the six months ended June 30, 2024 was $27.3 million, up from $23.2 million in the prior year period.

• Operating loss for Q2 2024 was $15.6 million, an improvement from $22.8 million in Q2 2023, due to lower R&D and SG&A expenses.

• Loss on derivative liabilities was $15.3 million in Q2 2024, primarily from warrant revaluations.

• Cash and cash equivalents as of June 30, 2024 were $6.9 million.

• Total indebtedness as of June 30, 2024 was $107.5 million, including $75.4 million outstanding under the Oramed Note.

Outlook and guidance

• Management has concluded there is substantial doubt about the company’s ability to continue as a going concern for the next 12 months without additional financing.

• Plans to obtain additional resources include equity offerings, debt financings, collaborations, or strategic transactions.

• Future liquidity is dependent on successful commercialization of ZTlido, ELYXYB, and GLOPERBA, and execution of planned financings.