Last Updated: 16 Sep 2024
Executive Summary
Scilex Holding Company (SCLX) is a biopharmaceutical company focused on developing and commercializing non-opioid therapies for acute and chronic pain. The company has a market capitalization of $151.48 million and is currently trading at $1.15 per share. Analysts have a consensus target price of $5.50, indicating a potential upside of 378%.
Company Overview
Scilex was founded in 2019 and is headquartered in Palo Alto, California. The company's lead product candidate is SEMDEXA (dexamethasone sodium phosphate), an injectable non-opioid pain reliever for acute and chronic pain. SEMDEXA was approved by the FDA in 2022 and is expected to launch in 2024.
Fundamental Analysis
Scilex is a pre-revenue company with no significant revenue or earnings. The company's operating expenses have been increasing as it invests in research and development and prepares for the launch of SEMDEXA. Scilex has a book value of -$1.768 per share and a trailing price-to-sales ratio of 2.98.
Technical Analysis
SCLX has been trading in a range between $0.732 and $2.63 over the past 52 weeks. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is at 34.42, indicating that the stock is oversold.
Short Term Outlook
In the short term, SCLX is likely to remain volatile as investors await the launch of SEMDEXA. The stock could see a short-term rally if the launch is successful, but it could also decline if the launch is delayed or if the product does not meet expectations.
Long Term Outlook
The long-term outlook for SCLX depends on the success of SEMDEXA. If SEMDEXA is successful, Scilex could become a major player in the non-opioid pain market. However, if SEMDEXA is not successful, Scilex could struggle to generate revenue and profitability.
Analyst Recommendations
Two analysts have a buy rating on SCLX, while none have a strong buy, hold, sell, or strong sell rating. The consensus target price of $5.50 implies a potential upside of 378%.
