Scpharmaceuticals ((SCPH)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for scPharmaceuticals conveyed an overall positive sentiment, highlighting robust revenue growth and strategic achievements such as the FDA approval for expanded use in chronic kidney disease (CKD). Despite challenges like increased operating expenses and a higher net loss, the company remains optimistic about future growth prospects, driven by Medicare redesign and product expansion.
Significant Revenue Growth
scPharmaceuticals reported an impressive $36.3 million in FUROSCIX net revenue for 2024, marking a 167% increase year-over-year. This substantial growth underscores the company’s successful market strategies and expanding product reach.
FDA Approval for Expanded Use
The FDA’s approval of FUROSCIX for treating edema in CKD patients significantly expands its market potential. This regulatory milestone is expected to drive further adoption and revenue growth for the company.
Increased Provider Adoption
The company has seen a notable increase in provider adoption, with over 3,800 unique providers prescribing FUROSCIX. Additionally, doses filled increased by 23% in Q4 compared to Q3, indicating growing acceptance and demand.
Positive Patient Co-pay Developments
The anticipated Medicare redesign is expected to lower patient out-of-pocket costs significantly. This development could potentially increase fill rates and demand for FUROSCIX, enhancing its market penetration.
Autoinjector Progress
scPharmaceuticals reported encouraging data from shelf-life testing of the Autoinjector, with plans for a mid-year submission of the supplemental new drug application (sNDA). This progress is crucial for the company’s product pipeline expansion.
Increased Operating Expenses
The company experienced a rise in selling, general, and administrative expenses to $77.6 million for 2024, up from $53.4 million in 2023. This increase reflects the company’s investment in growth and expansion efforts.
Higher Net Loss
scPharmaceuticals reported a net loss of $85.1 million for 2024, compared to $54.8 million in 2023. Despite this higher net loss, the company remains focused on long-term growth strategies.
Continued Gross to Net Discount Challenges
The gross to net discount for FUROSCIX was approximately 19% in Q4, with expectations to increase to 30-35% in 2025 due to Medicare redesign. This adjustment poses a challenge but is part of the company’s strategic adaptation to market changes.
Forward-Looking Guidance
scPharmaceuticals provided forward-looking guidance with a net revenue of $12.2 million for Q4 2024, contributing to a total of $36.3 million for the year. The company anticipates a long-term gross-to-net discount range of 30% to 35% for 2025 due to Medicare redesign. The FDA approval for FUROSCIX in CKD patients is set for a full launch in April 2025, expected to enhance market penetration and organic growth.
In summary, scPharmaceuticals’ earnings call reflected a positive outlook, driven by significant revenue growth and strategic advancements such as FDA approvals and Medicare redesign. Despite challenges like increased expenses and net loss, the company is well-positioned for future expansion and market penetration.