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Scilex alleges market manipulation in letter to Congress

Published 2024-05-24, 01:00 p/m
© Reuters.
SCLX
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PALO ALTO, Calif. - Scilex Holding Company (NASDAQ:SCLX), a firm specializing in non-opioid pain management products, has formally addressed concerns of alleged illegal market manipulation to the U.S. House of Representatives. The company claims that certain practices, such as "naked short" selling of its common stock, may be in violation of SEC Regulation SHO and detrimental to shareholder value.

In a letter sent today, Scilex management expressed its determination to address these alleged manipulative activities. The company's stance is that such practices infringe on shareholder rights by potentially devaluing the company's stock.

Scilex, which prides itself on innovative approaches to pain management, has a portfolio that includes ZTlido® for neuropathic pain, ELYXYB® for acute migraine treatment, and the soon-to-be-launched Gloperba® for gout flare prophylaxis. Additionally, Scilex is developing product candidates, such as SP-102 for sciatica, which has completed Phase 3 trials and received Fast Track status from the FDA.

This news is based on a press release statement from Scilex Holding Company.

InvestingPro Insights

Amidst the concerns of market manipulation addressed by Scilex Holding Company (NASDAQ:SCLX), the company's financial health and market performance provide a multifaceted picture. According to InvestingPro data, SCLX has a market capitalization of $132.02 million, indicating a relatively small market presence which may be more susceptible to market volatility. The company's P/E ratio stands at -0.85 for the last twelve months as of Q1 2024, reflecting that the company is not currently profitable. Additionally, the revenue growth of 12.54% in the same period signals potential in their sales strategies, despite the bottom line.

InvestingPro Tips highlight the significant debt burden that Scilex operates under, which may pose challenges for the company in making interest payments. This is a crucial consideration for investors, as it could impact the company's financial stability and future growth. Moreover, analysts do not anticipate Scilex to be profitable this year, aligning with the negative P/E ratio. On a more positive note, analysts expect sales growth in the current year, which could be a sign of the company's underlying business potential and market demand for its non-opioid pain management products.

It is also noteworthy that Scilex has seen a strong return over the last week, with a price total return of 21.11%, and over the last month, with a 28.24% return. However, the price has fallen significantly over the last year, by 84.11%, suggesting that recent gains may need to be viewed within the context of longer-term performance.

For those interested in a deeper dive into Scilex's financials and market performance, InvestingPro offers additional insights. With an InvestingPro subscription, users can access more detailed analysis and tips to better understand the investment landscape surrounding SCLX. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 10 more InvestingPro Tips available for Scilex, providing a comprehensive outlook on the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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