Scilex Holding Company Reports $72.8 Million Net Loss for 2024, Revenue Increases to $56.6 Million

Scilex Holding Company reported a net loss of $72.8 million for the year ended December 31, 2024, compared to a net loss of $114.3 million in 2023. Net revenue increased by $9.9 million to $56.6 million, driven primarily by increased sales of ZTlido ($5.8 million increase) and ELYXYB ($3.8 million increase), with the addition of GLOPERBA sales ($0.2 million) commencing in June 2024. The increase in ZTlido and ELYXYB sales resulted from higher demand and standard annual price increases, partially offset by increased rebates. Research and development expenses decreased by $3.1 million to $9.6 million, primarily due to reduced costs associated with SP-103 and SP-104.

Selling, general, and administrative expenses decreased slightly to $119.0 million in 2024 from $119.6 million in 2023. This decrease was primarily due to lower legal fees and insurance costs, offset by increases in rebate expense, contracted services, and personnel expenses. The company's cost of revenue increased by $1.0 million to $16.7 million, primarily due to higher royalties on increased ZTlido sales and increased ELYXYB sales. Other income/expense, net, experienced a significant decrease of $19.5 million to ($10.6) million in 2024, largely due to changes in the fair value of debt and liability instruments and (gain) loss on derivative liability.

Significant developments during the year included the launch of GLOPERBA in June 2024 and the continued commercialization of ELYXYB, launched in April 2023. The company also completed a Phase 2 trial for SP-103 in August 2023, which showed positive safety and tolerability results. Furthermore, Scilex entered into several significant agreements, including a license agreement for ZTlido in territories outside the U.S., a royalty purchase agreement for GLOPERBA and ELYXYB, and amendments to existing debt agreements. The company also noted that it had approximately 115 full-time employees as of December 31, 2024.

The company's financial statements included an explanatory paragraph from the independent registered public accounting firm expressing substantial doubt about Scilex's ability to continue as a going concern. This doubt stems from recurring operating losses, negative cash flows, and a substantial accumulated deficit. Scilex plans to fund future operations through a combination of equity offerings, debt financings, collaborations, and other strategic transactions. The company also highlighted several risk factors, including reliance on single-source suppliers, competition in the pharmaceutical industry, the uncertainties inherent in the regulatory approval process, and the potential for product liability lawsuits. The company's outlook is contingent upon the successful commercialization of its existing products and the successful development and regulatory approval of its product candidates. The company also noted that it received a notification from Nasdaq regarding its non-compliance with minimum bid price requirements for continued listing.