scPharmaceuticals Earnings Call Highlights Growth and Expansion

Scpharmaceuticals ((SCPH)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for scPharmaceuticals conveyed an optimistic outlook, underscored by robust revenue growth and successful market penetration into the chronic kidney disease (CKD) sector. Despite facing some challenges, such as seasonal revenue impacts and a reduced cash position, the overall sentiment was positive, with the company’s promising trends outweighing the negative aspects.

Significant Revenue Growth

scPharmaceuticals reported a remarkable increase in net revenue, achieving $11.8 million in Q1 2025, compared to $6.1 million in the same quarter of the previous year. This substantial growth reflects a heightened demand for their product, FUROSCIX, indicating strong market acceptance and expanding customer base.

Successful CKD Launch

The launch of FUROSCIX in the CKD market in April 2025 has been met with strong initial traction. Nephrologists have rapidly adopted the product, with prescriptions being written promptly, demonstrating the product’s appeal and effectiveness in addressing the needs of CKD patients.

Positive Market Expansion

The company’s strategic expansion into nephrology is yielding positive results, with a notable increase in prescriptions from nephrologists for both CKD and heart failure patients. This expansion is a testament to the company’s successful market strategies and the growing demand for FUROSCIX.

Improved Fill Rates

There has been a significant improvement in the fill rates for FUROSCIX prescriptions, which rose to 55% in April 2025 from 46% in Q1. This improvement is attributed to more Medicare patients reaching their out-of-pocket maximum, facilitating easier access to the medication.

Increased Sales Force Effectiveness

The expansion of the sales force has enhanced the company’s reach and frequency to target prescribers, resulting in increased demand for FUROSCIX. This strategic move has proven effective in boosting the company’s market presence and sales.

Seasonal Revenue Impact

The first quarter of 2025 saw an impact on net revenue due to seasonal factors, such as deductible and Medicare beneficiaries’ out-of-pocket cap resets. These factors affected prescription fill rates, presenting a challenge for the company in maintaining consistent revenue growth.

Reduced Cash Position

scPharmaceuticals experienced a decrease in cash and cash equivalents, dropping from $75.7 million at the end of 2024 to $57.5 million by the end of Q1 2025. This reduction was primarily due to net cash outflows, including incentive compensation payouts.

Gross to Net Discount Increase

The gross to net discount for FUROSCIX increased to 23% in Q1 2025 and is expected to rise to approximately 30% throughout the year, influenced by the Medicare Part D redesign. This increase poses a challenge for maintaining profitability margins.

Forward-Looking Guidance

scPharmaceuticals provided forward-looking guidance with confidence in FUROSCIX’s growth trajectory. The company anticipates a blended gross-to-net discount of around 30% for the remainder of 2025, driven by Medicare Part D redesign and mandatory manufacturer rebates. They expect the Autoinjector to significantly reduce costs of goods sold by 70% to 75%, enhancing growth potential. With $57.5 million in cash, the company plans for decreased quarterly net cash outflows as revenues increase, supported by a favorable copay environment for Medicare Part D enrollees.

In summary, scPharmaceuticals’ earnings call highlighted a positive outlook, with strong revenue growth and successful market expansion efforts. Despite challenges such as seasonal revenue impacts and increased discounts, the company remains optimistic about FUROSCIX’s long-term growth potential, driven by strategic initiatives and market expansion.