scPharmaceuticals Inc. (SCPH) Q2 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents strong financial performance with significant revenue and dose growth, especially in CKD. Despite high COGS and competitive pressures, the anticipated auto-injector launch is expected to improve margins. The Medicare redesign has shifted from a headwind to a tailwind, and the IDN strategy shows promising growth. While cash reserves decreased, management has access to additional funds if needed. Overall, the positive outlook for FUROSCIX, increased prescriptions, and strategic expansions suggest a positive stock price movement.
Key Financial Performance
Net Revenue $16 million in Q2 2025, a 99% increase over Q2 2024. The increase was driven by higher demand for FUROSCIX doses.
FUROSCIX Doses Filled Approximately 20,200 doses in Q2 2025, a 117% increase over Q2 2024. The growth was primarily attributed to cardiology and the recent uptake in nephrology.
Cost of Product Revenues $5 million in Q2 2025, compared to $2.3 million in Q2 2024. The increase was due to higher demand for FUROSCIX and related manufacturing costs.
Gross to Net Discount (GTN) Approximately 27% in Q2 2025, up from earlier quarters. The increase was primarily due to the implementation of the Medicare Part D redesign and mandatory manufacturer rebates under the Inflation Reduction Act.
Cash and Cash Equivalents $40.8 million as of June 30, 2025, compared to $75.5 million as of December 31, 2024. The decrease was due to net cash outflows, although these were lower in Q2 compared to Q1.
Operating Highlights
FUROSCIX doses filled: Approximately 20,200 doses filled in Q2 2025, a 117% increase over Q2 2024 and a 45% increase over Q1 2025.
Nephrology launch: Launched FUROSCIX into nephrology in late April 2025, showing faster uptake by nephrologists compared to cardiologists.
Auto-injector submission: On track for SNDA submission in Q3 2025, expected to reduce COGS by 75% and increase penetration rates.
Part D dynamics: Growing number of Part D patients reaching out-of-pocket maximums positively impacted Q2 performance and is expected to enhance market penetration.
IDN distribution strategy: Continued growth in IDN business, with performance exceeding expectations and new accounts being opened monthly.
Sales force expansion: Q4 2024 sales force expansion led to increased reach and frequency, contributing to Q2 2025 growth.
Revenue growth: Net revenue of $16 million in Q2 2025, a 99% increase over Q2 2024.
Ambulatory Specialty Model (ASM): Proposed in July 2025 by CMS, aimed at improving heart failure management and expected to support FUROSCIX uptake.
Risk or Challenges
Regulatory Changes: The implementation of the Medicare Part D redesign, including mandatory manufacturer rebates under the Inflation Reduction Act, is increasing the gross-to-net discount for FUROSCIX, which could impact profitability.
Cash Flow Management: The company experienced a significant decrease in cash and cash equivalents, from $75.5 million at the end of 2024 to $40.8 million in Q2 2025, raising concerns about cash flow sustainability despite expectations of reduced net cash outflows in the latter half of 2025.
Market Penetration Challenges: While there is growth in prescribers and doses filled, the adoption curve in cardiology and nephrology markets is still in its early stages, which may delay achieving full market potential.
Cost of Goods Sold (COGS): The current COGS remains high, impacting margins, although the company anticipates a reduction with the launch of the auto-injector.
Economic and Competitive Pressures: The company faces competitive pressures in the cardiology and nephrology markets, which could impact its ability to maintain or grow its market share.
Guidance & Outlook
Nephrology Market Contribution: The company anticipates nephrology will have a meaningful contribution in Q3 2025 and moving forward, with a faster uptake by nephrologists compared to cardiologists.
Part D Dynamics: The growing number of Part D patients reaching their out-of-pocket maximums is expected to enhance FUROSCIX's market penetration and prescription growth in the second half of 2025.
IDN Business Growth: The company expects continued growth in the IDN business segment, with performance exceeding internal expectations and acceleration as new accounts are opened monthly.
Ambulatory Specialty Model (ASM): The proposed ASM program by CMS for 2026 is anticipated to provide a significant tailwind for FUROSCIX uptake, focusing on early intervention for worsening heart failure symptoms.
SNDA Submission for Auto-Injector: The company is on track to submit the SNDA for the auto-injector in Q3 2025, which is expected to reduce COGS by approximately 75% and increase penetration rates.
FUROSCIX Growth Drivers: The company remains optimistic about FUROSCIX's growth trajectory, driven by expanded CKD indication, favorable Part D dynamics, IDN growth, auto-injector launch, and the ASM proposal.
Sales Force Expansion Impact: The expanded sales force is expected to continue delivering returns throughout 2025, with increased reach and frequency benefiting cardiology and nephrology markets.
Gross to Net Discount (GTN): The GTN discount is anticipated to approach 30% in Q3 2025, influenced by Medicare Part D redesign and mandatory manufacturer rebates under the Inflation Reduction Act.
Net Cash Flows: Quarterly net cash flows are expected to decrease for the remainder of 2025 as revenues increase due to higher volumes and a 3.5% price increase effective July 1, 2025.
Shareholder Return Plan
dividends: The extra sales force horsepower has started to hit its stride, and we expect that will continue to pay dividends over the balance of 2025.
Key Q&A
Earnings Word Cloud
SCPH Transcript
The earnings call presents strong financial performance with significant revenue and dose growth, especially in CKD. Despite high COGS and competitive pressures, the anticipated auto-injector launch is expected to improve margins. The Medicare redesign has shifted from a headwind to a tailwind, and the IDN strategy shows promising growth. While cash reserves decreased, management has access to additional funds if needed. Overall, the positive outlook for FUROSCIX, increased prescriptions, and strategic expansions suggest a positive stock price movement.
The earnings call reflects strong revenue growth and promising product adoption, particularly with the CKD launch surpassing expectations. The anticipated reduction in COGS due to the Autoinjector and positive market dynamics, such as the Medicare redesign, are favorable. Despite concerns over regulatory risks and competitive pressures, the company's optimistic outlook for revenue growth and decreasing cash outflows suggests a positive sentiment. The Q&A session supports this with indications of strong market traction. However, the lack of clear guidance on certain aspects tempers the sentiment slightly, leading to an overall positive rating.
The earnings call indicates strong revenue growth and positive market traction, particularly in the CKD segment, which is outpacing expectations. The company is managing competitive pressures and supply chain challenges without significant impact. Although cash flow risks exist, they are expected to decrease. The Q&A reveals positive sentiment from analysts regarding physician traction and IDN sales growth. Despite a net loss, the overall outlook is positive with increasing revenues and a strategic focus on growth. The absence of negative guidance and strong product performance support a positive stock price movement.
SCPH Report
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