scPharmaceuticals (SCPH) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported net product revenue of $3.8 million for Q3 2023, a significant increase of 138% from $1.6 million in Q2 2023, driven by unit shipments through the specialty pharmacy network and direct sales to integrated delivery networks [5][11][20] - Gross profit for Q3 2023 was $2.7 million, with a cost of revenue of $1.1 million [20] - The net loss for Q3 2023 was $15.6 million, compared to a net loss of $10.2 million in Q3 2022 [21] - Cash, cash equivalents, and short-term investments at the end of Q3 2023 totaled $90.2 million, down from $118.4 million at the end of 2022 [22] Business Line Data and Key Metrics Changes - The average number of doses per prescription filled for FUROSCIX was 5.6, higher than long-term expectations [10] - The fill rate for FUROSCIX prescriptions increased to 55% in Q3 from 52% in Q2 [10] - The company added 12 sales territories towards the end of Q3, bringing the total field sales force to 66 territories [12][18] Market Data and Key Metrics Changes - The company reached an agreement with a large integrated delivery network, providing unrestricted access to FUROSCIX for over 8 million lives [6] - As of November 1, FUROSCIX was added as a preferred brand on a major government retiree payer formulary, increasing preferred access by an additional 1.1 million lives [6] Company Strategy and Development Direction - The company is focused on expanding the FUROSCIX indication to include Class 4 heart failure patients and treatment for edema due to fluid overload in chronic kidney disease patients [14][15] - The company plans to report data from a pivotal pharmacokinetic study in 2024 and aims to submit a supplemental new drug application to the FDA by the end of 2024 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the FUROSCIX launch and the progress made with large payers, which is expected to enhance access for heart failure patients [62] - The company anticipates that payer decisions will expand access to FUROSCIX, aiming for 75% or more heart failure patients to have fixed co-pays of $100 or less [13] Other Important Information - The company has engaged in a broad multi-channel marketing campaign to drive brand awareness and adoption of FUROSCIX [19] - The company is actively working to improve patient engagement and reduce co-pays through better market access strategies [52] Q&A Session Summary Question: Discussion on direct purchase agreements from IDNs - Management indicated that while direct purchases from IDNs were minimal in Q3, they expect this to become a meaningful part of the business moving forward, especially in 2024 [26] Question: Future sales rep additions - The company plans to increase the number of sales representatives to around 110, with the next expansion likely in the first half of 2024 [27] Question: Units per script increase - Management noted that the increase in units per script is driven by the absence of quantity limits and a higher proportion of patients in preventative care [33][34] Question: Unique prescribers vs. prescriptions written - The discrepancy is attributed to new prescribers writing fewer prescriptions initially as they become accustomed to the product [39] Question: IDN network and in-services - The IDN network allows for more efficient training and in-servicing, as they can control the process internally [45]