Company: SCLXW
Filing Date: 2025-05-14
Form Type: 424B3
Source: 0001193125-25-119831
Chunk: 77

Company: Scilex Holding Co
Filing Date: 2025-05-14
Form: 424B3
Chunk 77
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 may misuse our products with their patients if they are not adequately trained, potentially leading to injury and increased risk of product
liability. Any such product liability claims may include allegations of defects

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in manufacturing, defects in design, a failure to warn of risks inherent in the product, negligence, strict liability and a breach of warranties. Claims could also be asserted under state consumer protection acts. If we cannot successfully defend ourselves against product liability claims, we may incur substantial liabilities or be required to limit commercialization of our product candidates, if approved. Even successful defense would require significant financial and management resources. Regardless of the merits or eventual outcome, liability claims may result in:

| • |     | loss of revenue from product sales; |

| • |     | decreased demand for our product candidates or products that we develop; |

| • |     | injury to our reputation; |

| • |     | withdrawal of clinical trial participants; |

| • |     | initiation of investigations by regulators; |

| • |     | restrictions on labeling, the marketing or manufacturing of the product, withdrawal of the product from the 
 market or voluntary or mandatory product recalls;                                                           |

| • |     | costs to defend the related litigation; |

| • |     | a diversion of management’s time and our resources; |

| • |     | substantial monetary awards to trial participants or patients; and |

| • |     | the inability to commercialize our product candidates. |

Our inability to obtain and maintain sufficient product liability insurance at an acceptable cost and scope of coverage to protect against potential product liability claims could prevent or inhibit the commercialization of any products we develop. We currently carry product liability insurance covering use in our clinical trials in the amount of $10.0 million in the aggregate. Although we maintain such insurance, any claim that may be brought against us could result in a court judgment or settlement in an amount that is not covered, in whole or in part, by our insurance or that is in excess of the limits of our insurance coverage. Our insurance policies also have various exclusions and deductibles, and we may be subject to a product liability claim for which we have no coverage. We will have to pay any amounts awarded by a court or negotiated in a settlement that exceed our coverage limitations or that are not covered by our insurance, and we may not have, or be able to obtain, sufficient capital to pay such amounts. Moreover, in the future, we may not be able to maintain insurance coverage at a reasonable cost or in sufficient amounts to