Scilex Holdings Inc. completed an $18 million cash payment to Oramed Pharmaceuticals on January 7, 2026, fully satisfying the remaining obligations under a previously negotiated option agreement. The payment brings Oramed’s cumulative returns on its investment in Scilex to $118 million, a profit of $18 million on an original outlay of $99.5 million.
The transaction does not extinguish Scilex’s other debt to Oramed. Oramed continues to hold a $27 million senior secured note and a $12 million convertible note that remain outstanding and are scheduled for quarterly repayment through October 2026 unless converted. The $18 million payment was tied solely to the option agreement and does not reduce these balances.
For Oramed, the cash inflow enables the company to declare a $0.25‑per‑share dividend, totaling roughly $10.5 million, payable on January 26, 2026. The dividend reflects the firm’s confidence in its cash position and its desire to reward shareholders after realizing a substantial return on its Scilex investment.
Scilex’s financial picture remains challenging. The company has accumulated deficits and net losses in 2024, and the $18 million payment, while a relief, does not eliminate its debt obligations. Scilex has been actively restructuring its balance sheet, repurchasing warrants and making early installment payments on its senior secured promissory note, but it still faces the need for additional capital to fund operations and service debt.
The market reacted positively to the news, with Oramed’s stock rising in pre‑market trading on the day of the announcement. Investors viewed the cash receipt and dividend as evidence of Oramed’s successful monetization of its Scilex stake, while the remaining notes were seen as a manageable exposure that could be converted or repaid in the near term.
Overall, the transaction marks a significant milestone for both companies: Oramed secures a sizable return and shareholder payout, while Scilex reduces a portion of its cash obligations but retains debt that will require careful management in the coming months.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.