Company: SMNR
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001193125-25-179226
Chunk: 340

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 340
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 there is also a royalty payout of 1.5% of net sales for annual net sales of up to $250.0 million and 2.5% of net sales for annual net sales of greater than $250.0 million (projected to start from fiscal year 2028).

| (4) | Operating expenses projections are based on the assumption that Semnur will continue to depend on shared   
 services provided by Scilex for a period of three years following the closing of the Business Combination. |

The main categories in operating expenses include (i) salaries and benefits, (ii) product promotions and (iii) research and development. Prior to the commercial launch of SP-102 in 2027, research and development expense is projected to constitute approximately 67-70% of operating expenses, which includes clinical costs and chemical, manufacturing and control (“CMC”) costs. Following the commercial launch of SP-102, research and development costs are expected to decline to approximately 4-5% of total operating expenses. In contrast, prior to the commercial launch of SP-102, salaries and benefits are projected to constitute approximately 8-9% of operating expenses and following such launch, salaries and benefits are expected to increase significantly to approximately 33-42% (with peak expense in 2028) of total operating expenses, due to the expansion of the sales force necessary to support commercialization of SP-102. No product promotion costs will be incurred prior to the commercial launch of SP-102. Following the launch in 2027, product promotion expenses are expected to account for approximately 20% to 25% of total operating expenses.

| (5) | Semnur anticipates operating losses from 2024 to 2027 due to expenditures on the                                                                                        
 SP-102 clinical trials, CMC, promotional activities and regulatory payments, as well as any royalty and milestone payments following the commercial launch of SP-102 in 
 2027 to Semnur Equityholders under the Semnur Merger Agreement and the Shah Assignment Agreement. Semnur expects to achieve profitability starting in 2028.             |

Semnur Management Projections – Best Case Projections The key financial metrics of the Semnur Management Projections provided to Denali and relied upon by Denali in its valuation analysis are set forth in the table below:

|                             |     | FY2024 |            |   |     | FY2025 |             |   |     | FY2026 |             |   |