Summary of SC Pharmaceuticals Conference Call Company Overview - SC Pharmaceuticals is focused on the cardio-renal space and has launched a product called Furosex, which recently received a label expansion for patients with chronic kidney disease [2][3]. Financial Performance - In Q4 2024, SC Pharmaceuticals reported revenue of $12.2 million from the commercial launch of Furosex, with a projected total of $36 million for the full year 2024 [4]. - Analysts estimate revenue of approximately $73 million for the current year [4]. - The company has a strong financial position with nearly $76 million in cash at the end of 2024 [5]. Product Development and Market Strategy - Furosex is designed to improve the delivery of furosemide, reducing costs of goods sold (COGS) by 70-75% [6]. - The product is aimed at treating fluid overload in patients with chronic heart failure and chronic kidney disease [13][52]. - The company has received approval for expansion into chronic kidney disease and launched the product recently, already seeing prescriptions from nephrologists [6][7]. Market Opportunity - The heart failure market in the U.S. is valued at approximately $10 billion, with about 6.5 million patients annually [8]. - Patients with heart failure account for 11% of the total Medicare population but drive 41% of admissions and 53% of readmissions [10]. - The company estimates that Furosex can address about 2.1 million treatment opportunities, with an average cost of therapy around $4,700, leading to a market opportunity of approximately $10 billion [33]. Medicare Redesign Impact - The recent Medicare redesign is expected to benefit SC Pharmaceuticals by lowering patient out-of-pocket costs to a $2,000 cap, allowing for smoother payments over twelve months [7][42]. - The redesign has already shown positive impacts on fill rates and prescriptions written, indicating a potential increase in revenue [8][43]. Clinical Efficacy and Patient Outcomes - Furosex has demonstrated a bioavailability of 99.6%, providing equivalent diuresis to IV administration, which is crucial for patients experiencing fluid overload [17][18]. - Clinical studies indicate that 96% of patients treated with Furosex did not require hospitalization within 30 days, compared to 100% hospitalization in the control group [20]. - The product is positioned as an acute intervention for chronic heart failure patients, aiming to prevent hospital admissions [23][24]. Stakeholder Alignment - The interests of payers, hospitals, and physicians are aligned with the use of Furosex, as it helps reduce hospital admissions and associated costs [34][36]. - Hospitals face penalties for excess readmissions, making Furosex an attractive option for managing heart failure patients [31][37]. Future Growth Initiatives - The company plans to expand its sales force and has already seen benefits from this expansion, which is expected to drive growth in Q1 and Q2 [49][57]. - The introduction of an auto-injector version of Furosex is anticipated to further enhance market penetration and patient compliance [47][54]. Conclusion - SC Pharmaceuticals is well-positioned for growth with its innovative product Furosex, addressing significant market needs in the cardio-renal space while benefiting from favorable Medicare changes and strong clinical outcomes [58].

Financial Data and Key Metrics Changes - For Q4 2024, scPharmaceuticals reported net revenue of $12.2 million, a significant increase from $6.1 million in Q4 2023, representing a year-over-year growth of approximately 100% [22][8] - For the full year 2024, net revenue reached $36.3 million, marking a 167% increase compared to $13.6 million in 2023 [22][23] - The gross to net discount for FUROSCIX in Q4 2024 was approximately 19%, with expectations for a long-run discount of 30% to 35% in 2025 [9][10] Business Line Data and Key Metrics Changes - The number of unique providers prescribing FUROSCIX increased by 23% in Q4 2024 compared to Q3 2024, totaling over 3,800 providers [16] - Approximately 13,300 doses of FUROSCIX were filled in Q4 2024, up 23% from 10,800 doses in Q3 2024 [16] - The average number of doses per prescription increased to 7.4 doses, primarily due to more prescriptions for advanced heart failure patients [17] Market Data and Key Metrics Changes - The company anticipates that the Medicare redesign will enhance its commercial strategy and support organic growth of FUROSCIX, particularly with the $2,000 out-of-pocket maximum for Part D beneficiaries [10][11] - The CKD indication approval is expected to significantly expand the market opportunity, with over 700,000 cases of fluid overload annually [11][12] Company Strategy and Development Direction - The company plans to fully launch the CKD indication in April 2025, leveraging its expanded sales force and prior learnings from the heart failure launch [12][15] - The strategy includes focusing on nephrology targets with smaller territories to increase access and frequency of visits to prescribers [19][20] - The company is confident that the CKD expansion will be a meaningful growth driver for the FUROSCIX franchise [13] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the commercial growth of FUROSCIX in 2024, particularly in Q4, and highlighted the positive impact of the Medicare redesign on patient access [8][45] - The management noted that high out-of-pocket costs were a significant headwind in the previous year, but the redesign is expected to lower these costs and improve fill rates [45][46] - The company remains optimistic about the upcoming CKD launch and the overall growth potential for FUROSCIX in 2025 [15][51] Other Important Information - Research and development expenses for Q4 2024 were $3.2 million, slightly down from $3.3 million in Q4 2023, while full-year R&D expenses increased to $12.1 million from $11.8 million [24][25] - Selling, general, and administrative expenses for Q4 2024 were $21.4 million, up from $16.2 million in Q4 2023, with full-year expenses totaling $77.6 million compared to $53.4 million in 2023 [26][27] - The company ended 2024 with $75.7 million in cash and cash equivalents [28] Q&A Session Summary Question: Can you discuss the potential opportunity that the CKD launch represents for FUROSCIX? - Management highlighted the existing relationships with nephrologists and the potential for quicker uptake due to prior engagement with heart failure patients [34][35] Question: What hurdles have been faced in adoption, and how can the ramp be accelerated? - Management identified high patient out-of-pocket costs as a significant hurdle last year, but the Medicare redesign is expected to alleviate this issue [45][46] Question: How do you assess the burn rate relative to commercial costs? - Management indicated that as revenue increases, the burn rate will decrease, and they are confident in their cash position to support growth [55][56] Question: What is the reimbursement split between commercial and government payers for CKD? - The reimbursement split is similar to heart failure, predominantly involving Medicare patients [94] Question: Are you seeing an impact on fill rates and demand due to the Medicare redesign? - Management noted an increase in patients enrolling in smoothing and a decrease in co-pays, leading to improved fill rates [100][102]

Financial Data and Key Metrics Changes - SC Pharmaceuticals reported net revenue of $12.2 million for Q4 2024, a significant increase from $6.1 million in Q4 2023, representing approximately 167% year-over-year growth [15][18] - The gross to net discount for Furosix in Q4 2024 was approximately 19%, with expectations of a long-term discount in the range of 30% to 35% for 2025 [7][8] - The company reported a net loss of $18.8 million for Q4 2024, compared to a net loss of $13.8 million in Q4 2023, and a full-year net loss of $85.1 million for 2024, up from $54.8 million in 2023 [18][19] Business Line Data and Key Metrics Changes - Furosix revenues for the full year 2024 reached $36.3 million, driven by increased demand and market penetration [15][16] - The average number of doses per prescription increased to 7.4 doses in Q4 2024, largely due to more prescriptions written for advanced heart failure patients [11][12] Market Data and Key Metrics Changes - The company has seen a 23% increase in unique providers prescribing Furosix, totaling over 3,800 since its launch in February 2023 [11] - Approximately 70% to 75% of Furosix prescriptions are filled by Part D beneficiaries, indicating a strong reliance on Medicare for patient access [8] Company Strategy and Development Direction - The company plans to fully launch the CKD indication for Furosix in April 2025, which is expected to significantly enhance growth opportunities [9][10] - SC Pharmaceuticals is focusing on expanding its sales force and targeting nephrology specialists to maximize the potential of the CKD indication [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the impact of the Medicare redesign, which is expected to lower out-of-pocket costs for patients and enhance prescription fill rates [33][34] - The company is confident that the CKD launch and the expanded sales force will drive significant growth in 2025, despite acknowledging challenges in patient access and high co-pays in the previous year [36][37] Other Important Information - The company ended 2024 with $75.7 million in cash and cash equivalents, slightly down from $76 million at the end of 2023 [19] - Management highlighted the importance of their patient services hub in streamlining the prescribing process and improving patient access to Furosix [14] Q&A Session Summary Question: Can you discuss the potential opportunity that the CKD launch represents for Furosix? - Management indicated that the CKD indication provides a significant growth opportunity, especially since many nephrology patients also have heart failure, allowing for cross-prescribing [22][24] Question: What hurdles have been faced in adoption rates? - Management noted that high out-of-pocket costs were a significant barrier last year, but the Medicare redesign is expected to alleviate this issue [31][33] Question: How do you assess the burn rate relative to commercial costs? - Management stated that as revenue increases, the burn rate will decrease, and they are confident in their cash position to support growth initiatives [40][41] Question: What is the expected impact of the CKD launch on fill rates and demand? - Management has observed an increase in fill rates and demand as patient co-pays decrease, particularly with the recent Medicare changes [81][90] Question: How will the sales force manage interactions with nephrologists and cardiologists? - Management believes that the expanded sales force will allow for effective coverage of both nephrologists and cardiologists, enhancing overall patient access [62][66]