Why did Silex shares rise this week?

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what happened

share of Silex Holding (NASDAQ: SCLX ) It was up 39.7% this week through Thursday, according to data provided by S&P Global Market Intelligence. The stock closed last Friday at $7.60 and hit a high of $11.16 on Thursday, just shy of its 52-week high of $11.17 before closing the day at $10.62. Scilex is up more than 5% since it started trading Nasdaq 10 in November.

so what

Scilex develops non-opioid treatments for acute and chronic pain. Most are owned by healthcare organizations Sorrento TherapeuticsAnd there have been rumors of a possible buyout.

Scilex announced in a filing with the Securities and Exchange Commission on Tuesday that its board of directors has adopted a plan to offer stock options to attract top employees.

The company’s shares were already surging after it said on Jan. 3 that it expected annual revenue of between $37 million and $42 million in 2022, up from $31.3 million in 2021. That growth was led by Ztlido, whose sales were expected to be between $93 million and $98 million in 2022, up 53% from 2021. Ztlido treats postherpetic neuralgia, a burning pain caused by shingles.

what now

Scilex’s other approved therapy, Gloperba, to treat gout flare-ups, could generate $8.3 billion in annual revenue, the company said, while Ztlido could generate $1.9 billion in annual revenue.

It has two other therapies that may be available in the next few years. SP-102, for the treatment of lumbar radicular sciatica pain, is in a Phase 3 trial, and SP-103, a topical lidocaine system for the treatment of acute back pain, is in a Phase 2 trial.

While Scilex is unlikely to become profitable anytime soon, it has a large enough pipeline that should grow earnings.

Jim Haley has no position in any of the stocks mentioned. Motley Fool has no position in any of the stocks mentioned. Motley Fool has a revealing policy.


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