Sorrento unit to acquire SCILEX Pharma

Serial dealmaker Sorrento Therapeutics (Nasdaq: SRNE) has entered into a binding term sheet to acquire fellow USA-based SCILEX Pharmaceuticals, through its subsidiary Scintilla Pharmaceuticals.

SCILEX is engaged in the development and commercialization of products focused on the treatment of pain. SCILEX' lead product candidate, ZTlido (lidocaine patch 1.8%), is a branded lidocaine patch formulation being developed for the treatment of postherpetic neuralgia, the chronic pain that sometimes develops with shingles.

The patch technology can be adapted to other applications. In July 2015, SCILEX filed a New Drug Application for ZTlido. The SCILEX team is meeting with US Food and Drug Administration in the next few weeks in preparation of a planned NDA re-submission for a potential FDA action date in mid-2017. The direct costs for re-submission are estimated to be less than $3 million. In addition to ZTlido, the SCILEX pipeline includes line extensions of ZTlido, as well as other novel patch technologies in development.