Scilex to explore ways to maximize value of Scilex Pharmaceuticals subsidiary

Scilex Holding’s board of directors has authorized management to explore ways to maximize the value of its wholly owned subsidiary, Scilex Pharma, including by way of conducting a spinoff or public listing of securities of Scilex Pharma in markets and on securities exchanges outside of the U.S., including Hong Kong, and/or a potential strategic transaction or dividend of Scilex Pharma common stock to Scilex stockholders. Scilex Pharma launched its first commercial product in October 2018, ZTlido 1.8%, a prescription lidocaine topical system that is designed with novel technology to address the limitations of current prescription lidocaine therapies by providing significantly improved adhesion and continuous pain relief throughout the 12-hour administration period. In 2023, ZTlido was recognized as the most prescribed non-opioid branded pain treatment by pain specialists, according to Prescription Data from Symphony Health and ZTlido profile being viewed as a leading prescription lidocaine patch by pain specialists. Based on the independent market research conducted by Syneos Health Consulting, with the new campaign, health care providers report increased awareness and substantial intent to utilize for ZTlido with peak sales potential projected to reach over $500 million in the next 6 years in the U.S. In June 2022, Scilex Pharma in-licensed the exclusive right to commercialize GLOPERBA oral solution, a U.S. Food and Drug Administration-approved prophylactic treatment for painful gout flares in adults, in the United States. In February 2023, Scilex Pharma acquired the rights related to ELYXYB and the commercialization thereof in the U.S. and Canada. ELYXYB is a first-line treatment and the only FDA-approved, ready-to-use oral solution for the acute treatment of migraine, with or without aura, in adults. Scilex Pharma launched ELYXYB in the U.S. in April 2023 and commercialized GLOPERBA in the U.S. in June 2024.