Sorrento deal

Sorrento will spin out its Scintilla Pharmaceuticals Inc. subsidiary as an independent company focused on pain management. The separation is due to occur when Scintilla closes its acquisitions of Semnur Pharmaceuticals Inc. (Los Altos, Calif.) and Scilex Pharmaceuticals Inc. (West Chester, Pa.), which is expected by mid-October.

Scintilla agreed to acquire Scilex for up to $70 million in Scintilla stock and will gain lead compound ZTlido, a 1.8% lidocaine transdermal patch formulation in development to treat postherpetic neuralgia (PHN). FDA issued a complete response letter for the product for undisclosed reasons, and Scintilla said it plans to resubmit an NDA for ZTlido early next year. ...