US-based clinical-stage biopharmaceutical company Sorrento’s subsidiary Scintilla Pharmaceuticals has completed acquiring the majority share of pharmaceutical products developer SCILEX.
Under a binding agreement announced in August last year, Scintilla acquired 72% of SCILEX's common stock for $47.6m, payable in a combination of cash and shares of Sorrento common stock.
ITOCHU CHEMICAL FRONTIER Corporation (ICF), a member of ITOCHU Corporation (ITOCHU), continues being the owner of the rest of 23% of SCILEX.
Sorrento paid 10% of the payment consideration at closing in common stock, while another 10% will be paid in Sorrento common stock after the resubmission of the New Drug Application (NDA) for the ZTlido product to treat postherpetic neuralgia.
Of the total $47.6m, 10% was paid by Sorrento at closing in Sorrento common stock, and 10% will be paid in Sorrento common stock upon the resubmission of the new drug application for the ZTlido product for the treatment of postherpetic neuralgia with the Food and Drug Administration (FDA).
The remaining 80% will be paid either in cash or Sorrento common stock, or in a combination of cash and Sorrento common stock upon FDA approval of the NDA.
SCILEX developed ZTlido, a branded lidocaine patch formulation to provide relief from pain of postherpetic neuralgia also referred to as after-shingles pain.
Sorrento president and CEO Dr Henry Ji said: "The acquisition of a majority of Scilex significantly enhances Sorrento's late-stage pipeline and footprint in the treatment of acute and chronic inflammation and pain.
“We are very pleased with FDA's recent guidance relating to Scilex's lead product ZTlido and believe that we have been provided a clear path to near-term resubmission.
"Through this acquisition, we have also fostered a strong relationship with Itochu Corporation, a leading Japanese company with $45bn in annual revenues.”