Company: SMNR
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001193125-25-179226
Chunk: 38

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 38
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 assets to be between $2.001 billion and $2.554 billion. Scilex’s low market capitalization, together with the volatility of its stock price and existing levels of debt, make it difficult for Scilex to attract investors and obtain the financing necessary to develop and commercialize SP-102. Scilex believes that establishing Semnur as a stand-alone company through the Business Combination will highlight its underlying fundamentals and future growth potential. Specifically, Scilex believes SP-102 could potentially benefit from a first-to-market advantage if it can be demonstrated to reduce or delay the need for expensive and potentially risky interventions, such as spinal surgery, while also decreasing the use of 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”. 9

| 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