scPharmaceuticals (SCPH) - 2024 Q4 - Earnings Call Transcript

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]