Company: SMNR
Filing Date: 2025-06-11
Form Type: S-4/A
Source: 0001193125-25-139124
Chunk: 347

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-06-11
Form: S-4/A
Chunk 347
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 its clinical and commercial supply needs for sodium hyaluronate, one of the excipients for SP-102. In addition, cost of sales projections also considered the negotiated contracted prices of commercial production of SP-102, if approved, by Lifecore under the Lifecore Master Services Agreement. Lifecore is the single-source manufacturer of SP-102. Taking into account the historical cost of supply by Genzyme and cost of manufacturing by Lifecore, cost of sales is estimated to be 10% of gross sales. |

| (3) | Gross profit projections are based on the projected net sales, with costs of sales, royalty payments and milestone payments deducted. Net sales are estimated to be approximately 35% of gross sales, and are determined by subtracting various fees and expenses from gross sales. These deductions include government and commercial rebates, return reserve, chargebacks and service fees. Cost of sales is estimated to be 10% of gross sales, as indicated in footnote (2) above. |

Gross profit projections assume royalty and milestone payments commence concurrently with the launch of SP-102 in fiscal year 2027, and that such payments will range from approximately $34.8 million to $225.4 million, with peak royalty and milestone payments of $225.4 million in fiscal year 2029. Under the Semnur Merger Agreement, assuming SP-102is approved by the FDA, Scilex is obligated to pay the Semnur Equityholders up to $280.0 million in aggregate (which amount is expected to be charged back to Semnur through an intercompany arrangement) contingent cash consideration based on the achievement of certain milestones, comprised of a $40.0 million payment that will be due upon obtaining the first approval of a NDA of SP-102by the FDA and additional payments that will be due upon the achievement of certain amounts of net sales of SP-102,as follows: (i) a $20.0 million payment upon the achievement of $100.0 million in cumulative net sales (projected to occur in fiscal year 2028), (ii) a $20.0 million payment upon the achievement of $250.0 million in cumulative net sales (projected to occur in fiscal year 2028), (iii) a $50.0 million payment upon the achievement of $500.0 million in cumulative net sales (projected to occur in fiscal year 2029), and (iv) a $150.0 million payment upon