Company: SMNR
Filing Date: 2025-07-02
Form Type: S-4/A
Source: 0001193125-25-154936
Chunk: 46

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-07-02
Form: S-4/A
Chunk 46
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 opioids. Based on Semnur management’s internal analysis of the results of a study commissioned by Semnur with Syneos Health in 2021 (with respect to the SP-102 market), the U.S. ESI Market for SP-102 is expected to have an average annual market growth rate of 3.6% between 2023 and 2027, with SP-102 potentially experiencing significant utilization after its expected launch in 2027. As a result, Scilex believes that Semnur will be better able to directly attract investors and obtain the financing necessary to develop and commercialize SP-102, without the overhang from Scilex’s debt, stock volatility and low market capitalization. Semnur’s management has conservatively estimated ESI market growth of 0.9% in 2028 and 0.5% thereafter. See the section titled “ Proposal 1 — The Business Combination — Certain Semnur Projected Financial Information”. 8

| Q: | What are Scilex’s short-term and long-term plans for Semnur? |

| A: | Scilex’s short-term plan for Semnur is to raise sufficient capital to fund Semnur’s Phase 3 Corticosteroid Lumbar Epidural Analgesia (“CLEAR”)-2 clinical trials and execute the clinical development plan agreed with the FDA, in order to obtain FDA approval and launch SP-102 in accordance with its anticipated timeline. |

Scilex chose to merge with Denali because, despite the proceeds currently in the Trust Account and the prospects for additional redemptions that may entirely deplete such account, it views the Business Combination as the quickest path for Semnur to achieve its short-term plans. Specifically, merging with Denali will enable Semnur to become a stand-alone public company that is potentially able to raise capital to support its ongoing cash requirements to carry out necessary clinical trials and execute its business plans based on Semnur’s value, without the overhang from Scilex’s debt, stock volatility and low market capitalization. This approach will potentially allow Semnur to raise capital more efficiently, facilitating the completion of its clinical trials in order to achieve the launch and commercialization of SP-102. Scilex’s long-term plan for Semnur is to expand Semnur’s product candidates and develop a product portfolio by developing or acquiring non-opioid therapeutics that complement Semnur’s current and future product candidates and future product portfolio and