Sorrento Therapeutics, Inc. (NASDAQ: SRNE) (“Sorrento”) announced today that its majority-owned subsidiary, Scilex Pharmaceuticals Inc. (“Scilex”), closed a debt financing with leading global institutional investors for aggregate gross proceeds to Scilex of $140 million. Scilex intends to use the net proceeds from this transaction for working capital and general corporate purposes in respect of commercialization of ZTlido (lidocaine topical system) 1.8%. Morgan Stanley & Co. LLC acted as sole structuring agent for the transaction.
“This non-dilutive financing provides Scilex with the capital resources to successfully execute on the launch of ZTlido,” said Henry Ji, Chairman, President and Chief Executive Officer of Sorrento and Scilex. “The structure of this financing also provides us with financial flexibility as we grow the ZTlido franchise to profitability and Scilex into one of the top global pain-focused pharmaceutical companies.”
ZTlido is indicated for the relief of pain associated with post-herpetic neuralgia (PHN), also referred to as post-shingles pain. ZTlido is a major advancement in analgesics because of its proprietary adhesion technology demonstrating 12-hour wear with efficient lidocaine delivery, even during exercise. In 2017, according to IMS data, over 110 million prescription lidocaine patches were sold in the U.S.
ZTlido will compete with Endo's Lidoderm and generic lidocaine patches. ZTlido's advantage will be its superior adhesion properties. One analyst has said that he expects sale of the drug to peak at $1.1 billion in 2025.
In addition to the commercial leadership, Scilex has recruited a team of 11 regional business directors and has partnered with Syneos Health (formerly InVentiv Health) to support a sales force of over 100 representatives. Scilex has also built a team of medical science liaisons to provide medical affairs support for the product.
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