Scilex Holding Company's majority-owned subsidiary Semnur Pharmaceuticals has secured $20 million in private placement funding to advance its lead non-opioid pain therapy SP-102 through a second Phase 3 clinical trial for the treatment of lumbosacral radicular pain and sciatica. The funding comes as Semnur prepares to become a public company through its pending business combination with Denali Capital Acquisition Corp.
Leadership Transition Supports Semnur's Public Company Preparation
In a significant strategic move, Jaisim Shah resigned as Chief Executive Officer and President of Scilex Holding Company on August 17, 2025, to dedicate his full-time efforts to leading Semnur as CEO and President. Henry Ji, Ph.D., who previously served as Executive Chairman of Scilex, has assumed the role of Scilex's new Chief Executive Officer and President.
"As Semnur is in the process of becoming a public company through its business combination with Denali, having a fully dedicated CEO is an important milestone and would serve to unlock Semnur's potential value," said Jaisim Shah, who co-founded Semnur in 2013 and has served as its CEO through Scilex's acquisition of the company in 2019.
$20 Million Private Placement at Premium Valuation
Under the purchase agreement with an investor, Semnur and Denali will issue 1,250,000 shares of common stock at $16.00 per share for the combined company following the business combination. The PIPE financing is expected to close immediately after the consummation of the business combination, which is scheduled for September 2025.
The proceeds will specifically fund the second Phase 3 clinical trial for SP-102, also known as SEMDEXA, a 10 mg dexamethasone sodium phosphate viscous gel formulation designed for epidural injection.
SP-102: First-in-Class Non-Opioid Epidural Treatment
SP-102 represents the first non-opioid novel gel formulation administered epidurally in development for patients with moderate to severe chronic radicular pain and sciatica. The therapy is a viscous gel formulation of dexamethasone sodium phosphate, a widely used corticosteroid, specifically designed for epidural injections to treat lumbosacral radicular pain.
Scilex has already completed one Phase 3 study for SP-102 and received Fast Track status from the FDA in 2017, highlighting the regulatory agency's recognition of the therapy's potential to address an unmet medical need in non-opioid pain management.
Business Combination Timeline and Market Positioning
The business combination between Semnur and Denali is expected to close in September 2025, following an extraordinary general meeting of Denali shareholders scheduled for September 3, 2025. The combined company will be renamed "Semnur Pharmaceuticals, Inc." upon closing.
While the combined company has submitted an application to list on The Nasdaq Stock Market LLC, approval has not yet been obtained. If Nasdaq listing is not approved, the combined company's securities will continue to trade on the OTC Markets following the business combination.
Scilex's Broader Non-Opioid Portfolio
Scilex Holding Company focuses on acquiring, developing and commercializing non-opioid pain management products for acute and chronic pain treatment. The company's commercial products include ZTlido (lidocaine topical system) 1.8% for neuropathic pain associated with postherpetic neuralgia, ELYXYB for acute migraine treatment, and Gloperba, a liquid oral version of colchicine for gout flare prophylaxis.
Beyond SP-102, Scilex's pipeline includes SP-103, a triple-strength formulation of ZTlido that has completed Phase 2 trials in acute low back pain and received FDA Fast Track status, and SP-104, a low-dose naltrexone hydrochloride formulation being developed for fibromyalgia treatment.
