Scilex Holding Company announced that it has entered into a Memorandum of Understanding (MOU) for collaboration agreement with ACEA, a China-based company focused on the development of innovative treatments for high unmet needs. Under the terms of the MOU, ACEA may receive exclusive rights to develop and commercialize of ZTlido in mainland China, Taiwan, Hong Kong, Macau, including the current formulation and a right of first negotiation for a future next generation formulation of a 3X version of ZTlido, SP-103. The MOU provides Scilex with the opportunity to expand collaboration with ACEA across other products in Scilex's non-opioid pain management portfolio in the Greater China region.

ZTlido is a lidocaine topical system approved for the relief of neuropathic pain associated with post-herpetic neurogia or PHN. ZTlido was strategically designed to address the limitations of current prescription lidocaine patches by providing significantly improved adhesion and continuous pain relief throughout the 12-hour administration period. According to the most recent analysis by Precedence ResearchMarch 2022 Pain Management Therapeutics Market Size, the pain management market size is estimated to reach USD101.27 billion by 2029 and growing at a CAGR of 4.3% from 2022 to 2030.

In mainland China, the pain management market size in 2022 was USD 17.5 billion with annual growth of 5.64%.