secwatch / observer
8-K filed February 27, 2024, 6:59 PM ET ticker SCLX CIK 0001820190
litigation confidence high sentiment neutral materiality 0.70

Scilex Pharma settles Virpax litigation for $3.5M upfront, $2.5M later, plus royalties on three drugs

Scilex Holding Co

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Scilex Holding Co entered into Settlement Term Sheet with Virpax Pharmaceuticals, Inc. valued at (i) $3.5 million by March 1, 2024 (the “Initial Payment”); (ii) $2.5 million by July 1, 2024 and (ii (effective 2024-02-26).

Action
entry
Agreement
settlement
Counterparty
Virpax Pharmaceuticals, Inc.
Value
(i) $3.5 million by March 1, 2024 (the “Initial Payment”); (ii) $2.5 million by July 1, 2024 and (ii
Effective
2024-02-26
Exact text from the filing
On February 26, 2024, the Plaintiffs and Virpax entered into a term sheet regarding a mutual release and settlement agreement (the “Settlement Term Sheet”), pursuant to which the parties have agreed to enter a definitive settlement agreement by or before March 1, 2024 to resolve their ongoing disputes and provide for, among other things, that Virpax will be obligated to make the following payments to the Company to settle the Action: (i) $3.5 million by March 1, 2024 (the “Initial Payment”); (ii) $2.5 million by July 1, 2024 and (iii) to the extent any of the following drug candidates are ever sold, royalty payments of (a) 6% of annual Net Sales (as defined therein) of Epoladerm; (b) 6% of annual Net Sales of Probudur and (c) 6% of annual Net Sales of Envelta.
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Source: SEC EDGAR
accession 0001193125-24-046890
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