Semnur Pharmaceuticals to go public in SPAC deal of up to $2 billion with Denali Capital

Semnur Pharmaceuticals announced on Tuesday its intention to go public via a merger with Denali Capital Acquisition Corp (DECA.O), a special purpose acquisition company (SPAC). This pre-transaction equity deal is valued at up to $2 billion. Semnur, a subsidiary of Scilex Holding (SCLX.O) based in California, specializes in developing non-opioid pain treatments.

If the merger proceeds, the newly combined entity will retain the name Semnur Pharmaceuticals, with Scilex Holding remaining the majority shareholder. Shareholder approval from the SPAC is expected to be sought in the latter half of 2024.

The funds from the transaction will be allocated towards advancing Semnur’s leading drug candidate, SP-102, which is in late-stage clinical trials for treating patients with moderate-to-severe chronic radicular pain or sciatica. Sciatica involves the irritation, inflammation, pinching, or compression of nerves extending from the lower back down to the legs.

SPACs are entities that raise capital through an initial public offering (IPO) and hold the funds in trust to merge with a private company, thereby taking it public. Typically, SPACs have a two-year period from their IPO to complete a merger.