PALO ALTO, CA – Scilex Holding Company (NASDAQ:SCLX), a biopharmaceutical firm specializing in biological products with a market capitalization of $81.5 million, announced the appointment of BPM LLP as its new independent registered public accounting firm.
According to InvestingPro data, the company faces significant financial challenges, with its stock down nearly 70% year-to-date. The decision was made by the Audit Committee of the Board of Directors on Thursday, effective for the quarter ended September 30, 2024, and the fiscal year ending December 31, 2024.
Prior to engaging BPM, Scilex had not consulted the accounting firm for any financial advice or auditing services during the two most recent fiscal years or the subsequent interim period. The company confirms that there were no disagreements or reportable events as defined by SEC regulations with its previous accountant.
The change in the company's certifying accountant is documented in the recent 8-K filing with the Securities and Exchange Commission. As per the filing, the company's previous accountant did not provide any written or oral advice that was considered an important factor in the company's accounting, auditing, or financial reporting decisions.
InvestingPro analysis reveals concerning metrics, including a current ratio of 0.2, indicating potential liquidity challenges. Subscribers can access 7 additional key financial insights about SCLX.
This switch comes as part of Scilex's regular corporate governance practices. The company, headquartered in Palo Alto, California, is incorporated in Delaware and operates under the name 03 Life Sciences following a name change from Scilex Holding Company/DE on November 17, 2022, and from Vickers Vantage Corp. I on August 4, 2020.
The appointment of BPM is part of the company's ongoing efforts to ensure the highest standards of financial reporting and compliance. While Scilex's common stock and warrants are traded on The Nasdaq Stock Market under the symbols SCLX and SCLXW, respectively, analysts maintain an optimistic outlook with a consensus "Strong Buy" recommendation and price targets ranging from $4 to $14, significantly above current trading levels.
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The information in this article is based on the latest 8-K filing by Scilex Holding Company with the SEC, reflecting corporate governance updates without suggesting any broader industry impacts or trends.
In other recent news, Scilex Holding Co. has been navigating a series of significant developments. The company announced the resignation of David Lemus from its Board of Directors for personal and professional reasons, leaving a vacancy yet to be filled.
Scilex has also successfully negotiated waivers for potential defaults on its financial obligations, preventing immediate acceleration of payment obligations under the senior secured promissory note and the Tranche B notes.
The company received a non-compliance notice from Nasdaq due to a delay in filing its Q3 report and is now required to submit a plan to regain compliance. Meanwhile, Scilex reported Q3 net sales growth for its non-opioid pain management products, with ZTlido sales reaching between $11.0 million and $13.0 million.
Scilex secured a $50 million convertible note offering with stakeholders including Murchinson, 3i (LON:III) LP, and Oramed Pharmaceuticals (NASDAQ:ORMP), a move that H.C. Wainwright applauded as it maintained its Buy rating on Scilex. Additionally, the company reached a consensus with the FDA for a New Drug Application for SP-103, a product candidate for chronic neck pain treatment, projected to reach peak annual sales of $1.2 billion by the 6th year after its launch.
Furthermore, Scilex is exploring strategic options for its subsidiary, Scilex Pharmaceuticals, potentially considering a spinoff or public listing outside the United States.
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