SCPH - Earnings call 3 2023 | scPharmaceuticals Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the SC Pharmaceuticals Third Quarter 2023 Earnings Conference Call.

As a reminder, the conference is being recorded. [Operator Instructions] I would now like to turn the conference over to PJ Kelleher, LifeSci Advisors. ahead. go Please

Peter Kelleher

operator. Thank you,

are the and anticipate, limited to call and the All I turning laws, historical business project to on of in the the to, federal over the statements future following similar expected like confidence, securities facts than make for other statements. but Pharmaceuticals' conference would other statements remarks expect, within financial this results guidance, The meaning typically plans not Before including, identify call management, words forward-looking concerning statements believe, are regarding SC and estimate, intend, management's used expectations forward-looking such expressions FUROSCIX. target, to statements. forward-looking

risks on Officer turn these call of Executive or update is required implied differ expectations obligation forward-looking contained of Report intent what performance and results. important not John quarterly materially based not forward-looking other and statements my other involve outcomes to law. scPharmaceuticals' may as and risk results forward-looking factors are any that scPharmaceuticals to These Mr. factors is may the by expressed is and certain of which but and statements. financial qualifications filed your include, reports other John? and operating Tucker, uncertainties over on in Annual now the future in conference except with disclaims other current statements from reports your the call, are to condition to questions, attention statements, by and affect limited the It expressly scPharmaceuticals' or Actual scPharmaceuticals. company by to this and and guarantees may SEC pleasure Chief these XX-K as Form are Form business, These today, made forward-looking Any to, to including directed. are on XX-Q responses subject

John Tucker

results. Senior quarter detailed review FUROSCIX of Chief our PJ, Rachael to call our Parsons, and Steve This a more Nokes, Vice everyone you to to to on for third this the over operational for Officer, a webcast of am update provide Commercial President pleased review Financial you, call our financials. to afternoon, turning and XXXX launch; and our an afternoon's the then Thank update I thank listening before

will your the open We then questions. call for

quarter third prescription. of product full represents the as number commercial and in launched has including XXXX prescriptions, of The prescribers late continued indicators, Demand February. of reflected our grow, quarter second of we to our total per filled FUROSCIX key number doses in availability

failure overload, meeting needs specialists patients heart fluid FUROSCIX comfort believe suffering and gaining is from of it. the we quickly are prescribing

our we networks. Also of through first FUROSCIX quarter, XXX% time representing are revenue pharmacy of of patients third million by delivery XXXX. multiple for This units integrated million, net second direct for predominantly cash shipped increase of to the sequential to The a in our the $X.X quarter driven $X.X from sales net was network. sales reported specialty the

third will end at quarter As with sales that second inventory increase, KPIs we the end mentioned Inventory quarter. be of we levels we reassessing the were IDNs levels quarter, last to as report. the the of at the consistent the

of Our QX approximately XX% of end at launch XX%, gross discount QX. running the down through net to is through from from end the

end additional quarter. We towards positive demand with expect over we the response this trends, to territories as of to XX contracting sales third In the evolves. an increase payers time added

quarter. in the to current these fourth additions territories, our field Shifting we impact brings seeing payers. and This sales positive to beginning now XX the anticipate of force

effort the We providing available U.S., largest $XX make in per we October, of to the of have possible. our to continue commercial, and terms with payers in to a at co-pay favorable broadly progress productive over the patients Medicaid FUROSCIX without $XX Medicare to discussions access Indicative and late X from unrestricted million D most prescription. reached an one fixed continuing at authorization with FUROSCIX ranging lives agreement integrated a to closed to prior Part networks delivery

November failure retiree the as formulary FUROSCIX previously as to one failure co-pays number $XXX of with of added-on fixed preferred brand towards X, access us fourth co-pays the goal our lives as increasing We or heart has FUROSCIX These early preferred more FUROSCIX impact formularies, patients the could of access having largest payer lives. that payer a X.X additional anticipate with stated and less. of quarter. moves FUROSCIX or with of decisions as an heart have Also, an XX% by patients of the this positively to government expand million to population nationally

many with to the plans, have progressing announcements in like several come. hope we more health other are We to months and these

coverage the Staying of payers recall moment, that Medicaid FUROSCIX for on July announced topic for effective a we national X.

FUROSCIX We these we that waiver as failure the in specialty can have of require efficiently that added to since an our as maximize needs Medicaid pharmacy heart states to possible. to patients network access and a address quickly additional

life Turning cycle management initiatives. now our to

regarding Class quarter, the indication FDA to we failure potential New in allow C long-term to feedback expansion critical favorable X strategy. During announced our IV for the FUROSCIX received on as patients. we Association growth meeting Heart feedback the August, heart Type In use view third that of from the York key we initiatives FDA

market heart IV that from prescribed the we benefit filed be for IV Class and Class will Heart percentage a indicated in estimate we indication FUROSCIX as IV chronic many a enable severe as We feedback If agency, upon from to currently many failure II and patients. the the overload meaningful our patients early represent III failure. XX% opportunity are we these the treatment York New received is FUROSCIX. Class as adult of are congestion of heart as due successful, that meaningful of heart Class expansion for Association and fluid with to most may in Based Class of all FUROSCIX the patients to XX% failure October.

successfully current feedback on-body of eligible confer treatment of pivotal to in end FDA the provide recently, an the study costs the of congestion we on-body infuser by developed approved to development require plan compared that adult to of due C pertaining manufacturing PK patients a a received to by to for from believe option FDA More and XX-milligram the advantages. do overload who is auto-injector XXXX. auto-injector And the fluid successful, report in if and infuser submission drug from Xml the supplemental but We application Type environmental We to are not hospitalization. intended targeting additional an reduced to data new we the XXXX.

a with with include FDA FUROSCIX the the treatment to meeting kidney potential or CKD. announced fluid feedback due expansion of from Type edema pertaining overload we the disease patients chronic of B to in Finally, indication to

pharmacodynamic failure. do million renal It's time, resulting in feedback, an not confirmed we aware frequent of FDA estimated and XX% adequate by that XX progressive heart its ml. PK of listed provided is can is additional with worsening diagnosis to In per drug, CKD have over that with patients are no they and million clinical that function CKD episodes studies to kidney the have a disease, indication, XXmg characterized which of loop-directs. Furosemide XX disease that demonstrate the are fluid the needed are expand bridge that Americans a to injection overload treated

to with progression, to to FUROSCIX the of believe be as work to a launch due with advance efficiently we common introducing most complications point, patients disease in as to new towards overload Plan for which are fluid CKD, of goal our being we The I'll are possible. with loop as CKD worsening At directs. FUROSCIX this fluid oral for Vice option President overload responding our one dive who and call turn into worsens symptoms beneficial to Steve? treatment the patients deeper Parsons, of metrics. Steve edema over a Commercial, CKD Senior not

Steve Parsons

Thank you, John.

commercial our was are quarter and full we third progress. second our availability, FUROSCIX the indicated, John quarter with pleased of As

Our encouraging to through unique we've through almost X,XXX results doubling be from XX. XX, continue had QX. XXX in From the June prescribers, acquired launch very September

been prescriptions are those in prescriptions with There that another have not X,XXX pending already ended. They and During the third are total written prescriptions still quarter, were we were process XXX QX the had filled. payers. Pending as canceled. of still XXX

and queue the others where in are authorization. Some prior are in waiting approved

plan the formularies, expected high co-pay providing rate various to reasons the for as reached increased fill hospitalized prescriptions XX% hard patients' FUROSCIX We percent in pending to costs quicker given. day. will a canceled or that written positioned cancel Of to are out-of-pocket that unreachable the that to XX% We been to coverage is In better who FUROSCIX the QX. more fill are every category those increase There prescriptions is QX, get into patients health filled number a QX anticipate from are continue more filled including deceased. on prescriptions that become some have now in to small contact main and continue lowering reason decisions. are

During which number quarter, doses per our prescription higher filled the X.X%, the remains was of expectations. third long-term average than

September In office Our for provides to X,XXX June in of this process of readiness. and services sales FUROSCIX service the offices as to XX compared X,XXX force ensures training conducted XX. as important on prescribing

of were trained to the and total We towards representatives It's are not to meaningfully the execution of ready more additional As added today note FUROSCIX of of added territories, such, as we said field added cardiology as The that demand conducting at stand warrants, selling as bringing remains results. QX previously in territories the face-to-face success. accounts, so QX did fundamental XX and important that We've we force open the our the in and add to territories. offices. now new we XX services new end to end to we during QX. territories sales did quarter very contribute

perspective, provider of development presence, patient From tasks. critical but awareness, a activities, marketing and other of and different to multichannel leaders, conference engagement brand adoption the This and engaged the program in activities include encompasses of among print a development opinion marketing broad and key drive websites key we collateral some ongoing cardiology both and many campaign electronic commitment. are

our their patient the Nokes, financial like progress turn we would failure with update. call concludes out for on. for We have patients also to Overall, Rachael Rachael? I reaching materials are Financial update. we over to our That caregivers very my Chief the education and the continued are pleased begun our FUROSCIX. that heart Officer, with and path

Rachael Nokes

million. was net of quarter decrease million Thank XXXX. third you, development decrease expenses to revenue and compared XXXX, of employee-related September profit offset pharmaceutical quarter quarter the increase $X.X ended to affairs third $X.X The a the quarter XX, costs. and quarter in XXXX in million, for for primarily by million third in and The million medical third revenue expenses of an $X.X to the for were yielding the clinical of $XX.X general was compared device gross million was for of development product $X.X and costs XXXX XXXX. million were $X.X the cost XXXX, expenses of of of development generated the and due for quarter partially in a and study We $X.X Research Selling, during Steve. costs. third research the decrease administrative

selling, of of quarter for ended XX, administrative The and XXXX, December general to in commercial third due compared third was the primarily of reported short-term increase quarter with of We employee-related September XXXX. and ended investments to for compared XXXX the quarter $XX.X net $XX.X $XX.X as increase equivalents million cash, costs. in million in XXXX. XX, loss cash the expenses third the of $XXX.X for costs an million We million a XXXX and quarter to

as September John? financial Finally, the XX, total shares scPharmaceuticals' That outstanding XX,XXX,XXX shares. concludes XXXX, update. of was

John Tucker

At call our concludes for prepared remarks. This questions. Rachael. the this will point, open Thanks, we

Operator

Instructions]. [Operator you. Thank

comes Roanna question Partners. first with The from Ruiz Leerink

Nikola Gasic

Maybe potential This of FUROSCIX Gasic and could of for quick forward? a could guess, or prescribing direct agreements the size should first on discuss broader to how is we bit the the IDNs And follow-up. about little think that purchase about drive future? could us, you the come Nik from the And extent Roanna. talk I going from in IDNs frequency what

John Tucker

talk IDN this IDNs direct be represent meaningful Steve last of let largest and purchases going a end it the of the business. to Nick, so still anticipate quarter, -- is at QX, quarter, specialty from did with this going Sure, our the was have through I'll much. pharmacy. Most we We did part up in to John. a of sign we that's that didn't here

internal forecast receive account Now keep in mind, that would our we in into have that, we taken business. have that

throughout think the especially we've part So said as of we net country. warehouse We it's to next units but do them tried total -- to and or they'll I meaningful a really quarter their think hospitals we going to articulate again, it year can't be to see that starting And -- to and revenue. we and I distribute script. into their scripts can't this sell per the

think So, especially what this very moving meaningful. that in meaningful we year next it quarter, the really in but forward do be wasn't will and

Nikola Gasic

then reps. just a And quick Helpful. on sales follow-up the

how future How for guess, -- added are sales into rep forward mentioned might the this sale? quarter. going thinking about flow you territories I So XXXX? in you through XX you How additions

John Tucker

Yes.

we around So really get little added hitting another reps. end We've along we that said quarter are to of the -- bit plan month. to reps at last that XX just a all the we again, field XXX the

another first do half the increase. it So next we next be yet year, that the probably next year when expansion. make But we in of will haven't articulated we'll

want sure big of balance way, territory that's of the of a still I cutting to make areas. going we're into territories the a little these, territory, right thinking we think wide absorb size versus

to but see going think next half you we're of stay would year. more opportunistic, I first reps in in ground So the the hit sales

Operator

question Wainwright. next comes with Douglas H.C. The Tsao from

Douglas Tsao

well maybe to go I has anticipated. per -- as up, and I what point, not than you progress. the on it's the guess, starting units Congrats think higher continued considerably a script considerably

of of launch, a docs ahead per little treatment, since to color driving about the mean been curious units it's course increase. even in going Steven if just continued what's more. it that. any I'm sort think like launch sounds I of or I bit of X terms talked maybe with and

John Tucker

Doug, let Steve Steve? I'll one. it's that John. handle

Steve Parsons

think we it is what there quantity limits. driving So is aren't

proportion might are again. to patients get they right already of preadmission as can is that if being a off discharged there's doctors the mix of Also, So doses trouble the got they not and was trying the higher to need in number if that fluid optimize the they being for now many after doses more were our get where more patients. there treated, into preventative

now we think quantity increase but in doses incrementally required utilization will X example, We a there's management where a for have may which also few continue X to it into of Rx. range dose Like payers. announced They by think run, X back as the have of quiet UnitedHealthcare right they limit quarter. down it limits some doses. are to short or the quiet a commercial, Medicaid states X the moderate per we limit last

can write same they the per another doses. prescription month, but Now X in Rx

bit think So we it might come down time. little over a

John Tucker

preadmission you're think usage we're -- the I I script see to where And also higher the think going in level. seeing more stage a

in more make adjudication I our and on probably effect different. our want the look co-pays, The is other great, have we're I rebates of that a shrinking also think anticipate on Obviously, anticipated. that X.X I those a doctors do just plans bit a think -- which some aggressive guidance had formulary we'll previously at But X to stays will Doug, the if we where than a time, to for. patients lower the not that range, little patients, of look paying still improve it little think of you units think up. you but But number of but number per access moderates bit at GTN originally rebates. to we come sword XX%, to drive We treating be script. with now double-edged thinking a a We're more at, more our GTN thing, if is a because seeing it's

Douglas Tsao

is individual then Great. and physicians the And sort IDNs to terms plan heart clinics? product, different just really to the helpful than it going the Okay. of be failure use in That's how color. of

Steve Parsons

for is and reduce they of it it place. for the since to hospitalization IDN an anywhere medical use the take the Yes, to sense whole costs burden costs, drug responsible the them, to first prevent stay makes length in can they

unlike they to they where a right the prescription, in you have do So off. want write they'll and anywhere everywhere use everything. to have guys, ability away, rest of prior the the it own you These to have world

finish job home, going early discharge So they the at to able they're do to be want that. to to

John Tucker

we've wanting writing bit patient anticipated when for that's out, to ready discharge I heard Doug, little getting of a initially than a that to prescription. think post thing, actually we more doctors this use a is get one kind maybe

So I more think even with the see IDNs, you of that.

Operator

The Rahman next with NAZ from question Maxim comes Group.

Nazibur Rahman

Congrats quarter. on the

X Just quick questions.

The increasing number is? prescriptions be rate is first faster what a one have number the that than unique to prescribers seems of comment I Can XQ between and of discrepancy your you on XQ. at

John Tucker

Yes.

accounts. territories still in-services we've those take new again, converting is the and first especially again, some in then time new opening been of And these some scripts. So focusing,

So early, to for come the back writing prescribers new a see the for here adopting ones how of before it. just lot wait one might works, patient it be

have maybe So how And NAZ and it you're nurse I that's X there might what just X one X or practitioners doctors think we or X physicians. nurse X a usually seeing, for practitioner or is be but works, number doctors. of

And the doctor the have do doctoring. written one, nurse diuretic even practitioner nurse up being tends of the most ends though the the practitioner rider, might to

consistently especially we're think physicians I where we now of month a good us, really we're October the and breadth to seen November we're start is starting the a to like because this lot So really of on strong starting, we've quarter, the seeing really was for off start. write -- a more

wrote product. practitioners doctors converting to or we're successful who the think starting nurse into or in adopt being those X So have really X I doctors their

Nazibur Rahman

or offices on, I That color and IDN the represents guess, beyond And provide question in long on like services like how in have to how some services was the facilities do this this commentary last could many number network network, my do many to how traction? is it you would And do or second to gain or you take in helpful. of patients? you

John Tucker

Yes.

it's if network that individual don't patients IDN the there's a of clinics so seeing -- pretty today, of physicians and Steve, to them practice, they've the add a of announced that. some lot private a with ] hybrid kind where also of of [ to there want some network So a practice nep-have them got of XX know big them heart kind we hospitals there. I are inside facility anything but failure you

Steve Parsons

can can in They themselves. that of they one at of an won't schedule do they'll employees and necessarily it the training. servicing location a The to available, is lot have do IDN beauty control be We a the time. to

In fact, about They to they like like to they talk like it, do control follow they their it up. to way.

burden us. not And for a so that's

Operator

The Chase Craig comes next Knickerbocker with Capital Group. question from Hallum

Chase Knickerbocker

a first similarities see kind of success having bit about talk percentage higher. little And where spilled. that any higher they're the are who conversion sort contracted, then just on written you're with writing physicians a well? higher percentage conversion of, where different places you've those kind co-pay? Maybe who most kind within Rx to lower as of kind starting those or fixed-year how a there's we look maybe some between driving of of or Do of there for being where scripts written protocols of Maybe I see that are most me, patients maybe those or of Rx prior-op the where

Steve Parsons

they that use doing the at higher above where and who product, or also they the for providing percent the lower filled have average selecting it information, goes. are Medicare seeing get access more they more experience patients proper comfortable the who So others offices have, product, better if and now docs they commercial authorization we're the more the more that versus -- more patients. Medicaid of are The of I'm the prior a correctly, Advantage look have the the to start it, process with XX%. The smoother to hearing prescribers

folks for it's seen it co-pay. and them, product but and high can easier, where have they so now offering may little select they've that they a in And they're a results, not necessarily to believe the the

we're So some of seeing that.

John Tucker

we're more Yes. continuing what think start a used form at And specialty finding information - that to I think filling saw doing plus need, offices Chase, our the to -- see and better are whatever is out job and getting what pharmacy patients. I they we I is think

patients don't pick these they when number, phone of Some don't call, up. recognize a a they they get

So We're we're texting. them letters. sending

talked process that raising think about -- of this of So that, rates. all the is I I that the and part fill think of we've

on the is it. The side is process, obviously, of the faster, working time adjudication other getting and access part down which co-pays what market we're of

what ways engage how for we've think in the and pharmacy the about with finding do done best with specialty patients. these to And QX the engage it, really I patients. doctors' But about drove best these to increase market research that, offices

when put going wins, year. I to think and all adjudication copays, we increase fill payer quarter top it and can that help managed decrease care, will of rate that's this I next which So up. continue that, or into time on into And think lower drive

Chase Knickerbocker

little eventually in the What of kind that are tightening? do any there would frame that color a sort from time ones seeing digging you an Is bit. frame there helpful. of filled? time Maybe get just be Just additional adjudication on

John Tucker

Sure. Steve?

Steve Parsons

Yes.

day, If get it's the the So well. depends hours, of on kind on looking or treatment and tomorrow start what XX want form. want. hour treatment we very dependent. to docs the review next on do checked they're they the expedited have and they that XX doctor expedited to for It patient

it of well. it have the They the it. order working known in to co-pay have advance then need remember queue they needing ready that's product form. a the people docs product. What it So They want they the or down to the approval until to get patient. who for in They have very release submit an pull and is we

you're on purpose. variability by that, so fill when it's but have in it's quite a rate, the you doing And design,

or who the answer quickly. So I'll it want ones getting quickly to just

Chase Knickerbocker

for kind kind share? sort how are FUROSCIX do you -- of of you And need when split these there waiting Any kind percentage -- of written visibility can scripts that and get maybe on build of of have versus and it. now patients guys writing what us these

Steve Parsons

I'll -- looking a next for Yes. It's -- actual a XX-XX. But time the it's day, that the is rewards thing. don't are like people numbers. I About have good XX% at for question. And That's in, have every getting XX% they're as and of just seeking are then and getting the answers, as possible, of ready patient when needs about they're it it. it treatment. them quickly sending there

John Tucker

really noncompliant, And that's to get Thanksgiving, to out, tend up. get Mrs. holidays this as medicine and dietary, into always going We Jones we're this to to hear think say, we know trouble, quarter especially I noncompliant. be going going play patients in does. we the from all doctors the is she queue

pull So through lot think we're quarter this as of well. really and be to seeing I quarter that able they'll this a them

Chase Knickerbocker

One guys Is those polished. that through? of that all the still come of we us But more still scripts write for it are to those fair that could you are wait pending. kind kind see of XXX think of and

Steve Parsons

prescriptions were we do what you calculation math about XX% all that published on if the is say would canceled. of the I

other are not been have evolved. have shipped of -- ones. XXX of lot as I'm that shipped the of sorry, bunch pending, still them QX We've queued pending been QX The has were a huge it the and in -- QX a lot

Operator

any John closing session. turn over would the back Please for like the ahead. I This concludes question-and-answer Tucker to remarks. go conference to

John Tucker

the with time, and momentum that gain . our Okay. that are our large excited we and concludes that and good as add We XXXX. updates and more only believe afternoon. more forward our to the about look initiatives providing we you I'm should life making XXXX. remain very our FDA launch and pleased a this meaningful the and have Overall, we successful with evening. are momentum build pleased access a FUROSCIX current progress our again, heart can At same payers, affordable FUROSCIX our to to That trajectory cycle to having in Thank with patients forward discussions failure call the after with upon of progress productive look

Operator

call. conference today's concludes This

for your have disconnect participating, Thank and a may you day. You pleasant lines.

scPharmaceuticals (SCPH) 8 Nov 232023 Q3 Earnings call transcript