Company: SMNR
Filing Date: 2025-08-12
Form Type: S-4/A
Source: 0001193125-25-178821
Chunk: 356

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-12
Form: S-4/A
Chunk 356
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 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 the achievement of $750.0 million in cumulative net sales (projected to occur in fiscal year 2029). The obligation to make the foregoing payments is an obligation of Scilex and Scilex will pay such amounts, if triggered. However, in the event Scilex makes any of these payments, Scilex expects to seek reimbursement of these amounts from Semnur through an intercompany arrangement between Scilex and Semnur. At this time, no such intercompany agreement is in place. See the section titled “ Business of Semnur — Material Agreements — Semnur Merger Agreement” for additional information regarding Scilex’s obligations under the Semnur Merger Agreement. Under the Shah Assignment Agreement, 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 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