SCPH - Earnings call transcript Q3 2024

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Operator

Good afternoon and welcome to scPharmaceuticals Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like to turn the conference call over to Nick Colangelo, Investor Relations, to cover forward-looking statements. Nick, please go ahead.

Nick Colangelo

Thank you, operator.

Before beginning today's earnings call, we would like to highlight the following forward-looking statements. statements conference the than securities and meaning but regulatory limited FUROSCIX. this forward-looking facts laws, of plans on future approvals of not within expected FUROSCIX the statements of to, and for statements the call management's ongoing historical other are including, financial business, All results, scPharmaceuticals' commercialization expectations marketing regarding the other federal and to expressions identify guidance, intend, forward-looking The words are target, and are used other estimate, typically the statements anticipate, forward-looking confidence, similar of future such project statements. These expect, guarantees believe, not performance. involve subject other scPharmaceuticals' and business, It results. risks may affect crucial and condition are operating and other uncertainties and financial may certain that factors to contained reports is These Form with report are include, to, the Form filed which on the your but attention directed. limited scPharmaceuticals' qualifications XX-K, in on not quarterly other and SEC to company risk by other XX-Q the reports annual and factors scPharmaceuticals is by may turn call, or and Actual including of results conference based that, outcomes your statements. Any as by responses this these on expressed implied these to and as questions, except differ forward-looking will statements expressively in required Chief to of expectations scPharmaceuticals. forward-looking are intent to disclaims statements, obligation today, or now John over the update Officer call from I forward-looking made Tucker, current law. With materially what any Executive John, please go ahead.

John Tucker

Commercial, has a this the quarter Parsons, dialed FUROSCIX Thank update. third provide business you, call. to to before for and who the begin thank President Senior XXXX Vice handing in by thorough highlights everyone and of discussing today's operational of our Steve company's to Nick, to you more commercial I'll afternoon's call call the

XXXX, closing in XX% our call of provide then review net the We generated from the before second $XX million. an with scPharmaceuticals' Nokes, will approximately net increase detailed quarter represents of Chief This third of out a Financial quarter Officer, we session. In revenue XXXX. financials from question-and-answer the of Rachael revenue a

our quarter see ended, we the have quarter, at the our While we in The longer-term the beginning the our growth over were XX% momentarily. FUROSCIX gross discount XX.X%, in of and We results. growth expansion, on indication with sales on sales pleased degree disappointed I range demand far XX% largely the so include net lagging to to that FUROSCIX initiatives second pharmacies. will is strong lesser high delivery the reporting due system IDN Class quarter increase the and and was GTN fourth of CMS where to the seen during to given third expansion the growth the guided coverage approximately by of to driven we end to networks rebates integrated patients with force being are the hospital IV this in comprehensive more just on give quarter. growth continued gap business. we a update a

lower the We of end we D Medicare the by positioned stay in in by offset co-pays Medicare and year, XXXX. the than patient For patient balance by in to GTN be due the increase of on uniquely costs of GTN lower D to Part the And XX% anticipate take redesign. Please the advantage to mind, anticipate XX% to out-of-pocket range. feel discount XXXX, GTN up the to the to the more redesign. the we in impact redesign to feel keep the XXXX, Part are the the we we XX% driven

of on FUROSCIX hospitalization therapies fluid are manage the symptom failure to from market, frequently patients the the Despite physical one likely to and patients This severe that roughly Class long-term IV failure benefit inpatient their FUROSCIX, responsible and heart for delay are costly of resonates for and setting. Ultimately, been patients of activity. symptoms, IV strongly on more more getting that including and greatest opportunities increased FUROSCIX message without of heart have patients. expansion we their growth back having events our future physicians for Class initiatives our failure indication patients more XX% the patients, has heart IV to consisting cover focused is outside maintenance to patients a over towards Looking all overall both the hospitalization of the XX% Class are with their limitation in chronic present resolution.

IV We an are prescriptions, the of and patients. sizes seeing Class size larger are IV Class already filling our patients in prescriptions uptick reflecting for in script

relates sNDA filing quarter indication CKD. we in to in acceptance overload key expansion expand chronic FDA fluid to the FUROSCIX Another that with or treatment this to of option was everyday patients objective if their the believe important edema kidney the being an play again, include diuretics by to for treatment are buildup fluid franchise CKD ongoing the due market, the our We disease regime work utilized accomplished who of FUROSCIX, in approved, the potential treatment again. oral the begins comfortable with to until has their an role patients to loop at-home the by

oral controlled is field renal has potential for loop patients' CKD CKD care overload conducting several decline a initiation. We've is steps a faster predictable fluid the on they fluid these calling that team acute these already treating prepare leaders that have key in bioavailability. as nephrologists as in research, mortality significantly testing have CKD have as loop initiatives exploratory diuretics to also a patients patients, given It identifying in opinion well and in and failure crucial overload heart CKD. well for do are levels diuretics dialysis high-impact associated positioning, establishing of While are undertaken with FUROSCIX who increased fluid around These that CKD. are oral current of fluid include market launch both that spikes function been in limitations, levels standard particularly cross-functional less

we for undertaking uptake every activity Autoinjector, prelaunch CKD. The on executing enable growth announced we the PK/PD is focused While which XXXX, over the final quarter August. a were line third commercial rapid positive initiative are we approval we our study from FUROSCIX top results date PDUFA X, our course in of bridging receive of await to March low-volume should

auto IV XXX.X% compared similar the the costs manufacturing to treatment participants option current patients. Importantly, Autoinjector, sodium the excretion had urinary and FUROSCIX HCPs furosemide. The infuser to demonstrated and a and meaningfully Autoinjector potassium output offers for urine receiving and reduce if Autoinjector bioavailability of to and compelling approved, potential has compared on-body

our and continuing the are through anticipate work submitting of in We January sNDA currently FDA to XXXX. to package

quickly our completed that in Parsons financing transformative roughly sheet launch million $XX a resulted through the net we early FUROSCIX overview Before comprehensive addition runway for to more I metrics, profitability. that in cash call hand August and to of projected a Steve expected wanted the balance to bolsters I of scPharmaceuticals' highlight

debt we Vice to turn In million scPharmaceuticals' addition an are a continued million via down equity support our Steve both a Advisors. of the Commercial. pull pleased the investors. I over facility will and put both additional summary, was royalty $XX Perceptive that to Senior roster immediately Parsons, the In from scPharmaceuticals Steve? that President great of now $XX with call in new we have to stream validation ability available, the and has place to and existing

Steve Parsons

FUROSCIX, approximately repeat remain progress with reflective second increase the providers We our efforts launch FUROSCIX X,XXX have during From health a existing and prescribed encouraged the third compared care to representing writers. John. the XX, continued unique expand while base of achieved to increasing through quarter. still by quarter XX% you, XXXX, Thank September the is prescriber utilization

of we doses doses continue second of the larger FUROSCIX trend approximately XX,XXX During risen have penetrate to quarter to quarter, X.X indication average will upward expansion Of include the driven per an the this heart doses quarter. quarter the providers to to clinics. previous the the FUROSCIX, IV in average filled for the number care we quarter. the X.X and of increased third third anticipate efforts over XX% has prescriptions failure from further writing some in prescription by up compared note, past advanced We Class health of patients. Also,

advanced process information, the medium to system are discharge see. will including support to patient's normal the to date and also long data treatment for which health we've highest treatment we the factors customers which and hub streamlined failure restrictions we status, expanded access, frequency customers of opportunity to their we typically hospital prescribers conclude, the Now I and connect new have quarter per service. To approval NYHA patient. should believe early call a patient been seen the XX the doses of the is reach the seeking in continues system have submissions can the FUROSCIX number far. system on fourth will e-prescribing Chief their removed, patients -- Nokes, ease captures beds future increases prescribing prior who intended receive to data that, to higher Officer. that track the authorization well the patient's convenience would Internal hub and and the approximately with home encouraging prescription. The addition distribution volumes prescribers highlighted number distribution Financial more FUROSCIX drive the access positive The and Direct FUROSCIX and these IDN all key territories They've allows friction feedback to impact perform scPharmaceuticals' to submission, of heart all to The for over and revenue. With the co-pay to real-time care value. delivery that what to in dashboard prescription we from class specialists during bring transition. of internal our year services of providers like Rachael now that are shipment that and systems, the improved from received ease the can to hearing hand planning reduce we also treatment This feel have patient thus amounts for our run. Convenience is following hub meds staff the a into from offers online and on have

Rachael Nokes

the third you, to primarily costs, commercial research the product quarter the an due into and quarter for $X.X quarter of ended development, million offset XXXX revenues million manufacturing compared quarter launch administrative decrease development third third compared third expenses for increase were September million September the were in increase by quarter FUROSCIX expenses the associated commercial selling, Product The quarter credit quality, September third product in XXXX. ScPharmaceuticals' of quarter $X.X and in quarter accounting million XXXX due to charges primarily XXXX. and increase for of revenues $XX.X and the of pharmaceutical of by increase third for for and good ended compared into XXXX, share. in burdened the to $X.XX net quarter third equivalents compared development company a of of further to quarter demand quarter product in of in extinguishment related for to loss XXXX. and in transformative XX, costs, that costs. Research the share. as reported for The million entering XXXX million XXXX, XXXX, was in of XXXX XX, Cost the due costs. Selling, expenses XXXX. for costs December in a offset new decrease third quarter third expenses revenue quarter costs, equity XXXX. August debt third everyone. for of compared patient XXXX for study related agreement cash net completed $X.X to increase to of of onetime share The cost the financial due revenues million clinical XXXX of $XX.X employee-related $XX.X revenues $XX financing for taxes ended both million short-term scPharmaceuticals to instruments increase third XXXX quarter to entered of and with $X.X by million compared purchase Thank employee-related quarter for $X.XX costs, of an and through the the of scPharmaceuticals $X.XX the and the cash Steve, XX, of in million $XX.X per and a XXXX. $XX.X was The August was and charges and XXXX, The of support August agreement to the loss debt expected per third and to per million for were $XX for $X.X of afternoon, the net for third XXXX. quarter profitability. equivalents was primarily loss The general administrative was regulatory professional sale investments the the XX, ended cash service were XXXX insurance. ScPharmaceuticals and funds in million for the in was general the of and was onetime in into cash, and with

our will hand total question-and-answer update the beginning XX, of before was to shares call I session. closing outstanding John XXXX, our and scPharmaceuticals' financial remarks back September XX,XXX,XXX. That for As concludes now

John Tucker

you, Thank At the for you, concludes Rachael this and point, we our Steve. will call remarks. thank prepared questions. open This Operator?

Operator

[Operator with Instructions] Ruiz from Partners. Leerink comes Roanna first question Our

Unknown Analyst

This Ruiz. a Roanna is questions. We for [ Mesi just ] couple on have of

what per could relative FUROSCIX failure. think, first, prescription to CKD look think I in curious the as to like for doses you heart

John Tucker

to Steve, do answer you want that?

Steve Parsons

Yes.

Our early similar. Class heart like failure be patients. as as be research suggests more high III failure won't IV heart it'll It II, the patients, Class Class

in the So X.X range. to X

Unknown Analyst

the if shake do you Autoinjector out Okay. Autoinjector, what rate term? in on-body long And could then to with the think of versus the diffuser approved, potential

John Tucker

Yes.

the some market of this this be will based modeled at So research. day of the this Autoinjector. percent XX-plus is think we've John. in end Yes, on We so initial the

back move and rate Now XXX%. a think forth by some rate will stay we'll there and things. We or the with the fluid who hospital, it. patients struggled know to number vast will will Autoinjector. patients and that will years clinic, found and adoption think get don't have something the we with driven new overload be the the adopt are works of We majority to IV But the transfer going it for

we conversion, the the So XX% think end by to it's Autoinjector. XX% of

Unknown Analyst

Okay.

from a then us. And Okay. last one

you any could So QX? the what holiday think season? seasonality in there do that we Is expected see about

John Tucker

Yes, that over to I'll Steve. turn

Steve Parsons

ERs, opportunity the is of to get of problem the big visit overload how admitted quarter around year the on based biggest year hospital, patients fourth is many fluid The holidays. a the Yes.

That's have is opportunity these And most the model quarter. predicts so our that the fourth most we'll where for in sales patients. the

So is there seasonality.

John Tucker

Yes.

they that too patient Chinese some to the salt, much understanding food, does preempt preempt script turkey, get just much trouble. too in a And have and by going patients doctors will case will writing are too that actually much whatever in

seeing in So prophylactic yet. as we prepared close gotten both are in opportunity said good the to even start and a haven't see really my therapy. And pre-admission or that an to quarter, we we I this even holidays remarks,

Unknown Analyst

Well of actually that expect usually to that something for follow Or kind see when see that with up like you do maybe the November, is that, holidays? up, Great. come Does prescribing the you more to on that QX? stocking Okay. period? physicians this in in December

John Tucker

phenomenon. QX a It's

So we'd November it December. expect in and to see

Operator

Stacy with Ku Cowen. Our TD next from question comes

Stacy Ku

We had a few.

regarding just IV So first patients. Class

IV? you CKD it days, for As the think you exit going percentage term, how upcoming and on And what you the launch? early do CKD, about you're can detailing initial long year, comment do stabilize? And what is the then think will you learning be still could Class where nephrology but

John Tucker

Sure. Stacy, the Class John. it's IV. I'll take

right now So XX%. we it's think about

launch it Now September. really didn't we until

So it's early.

we I in size. what is though increase think have an seen the script

next quarter scripts. scripts our we're today. of XX% and grow So the to be the will into through think as here to be impactful about us there size that going think But year. the is of We might as sitting I

Steve Parsons

prescription. doses Eight per

John Tucker

Yes. prescription We're per on seeing X doses Class IV. about

about home we're seeing the an an size to enthused using care use as also many X as can of IV stated clinic And think the at hospital do before, patients, preventing these we're treatment, week the a lot that we that in IV now So scripts. times to patients a how of go they get for scripts could go be IV as to where palliative as we've but well clinic.

talk bit initiative we reception were nephrology, called As far a started X.X But about and ago. you this the a little Steve, we've month, offices could the months as had. just maybe on

Steve Parsons

in market was that by Or nephrologists research prescribing heart question it your failure? actual is about question about? the Is

Stacy Ku

launch of the heart when that's all curious concomitant the Just sure and be giving will reception force what CKD failure A you CKD. receptivity right idea -- of of kind it's of patients. and both. you is bit little what to now, kind an kind the I'm of But sales

Steve Parsons

Yes.

positive. were a hear be for But They original year. they pretty from it about get plan our account. next go to inbound They the it's to target lot this going weren't we inbound Well, We cardiology. in see get for do nephrologists. built of on year. for requests Okay. Like requests opening

pretty They IV outpatient So to been access their IV. have don't positive. offices, it's in

FUROSCIX has overlap, prescribe. they So cardiorenal they that adoption need the been, little to. a cardiology the product their I'd than faster offices see the and need, like say, a they see we've been and in They

John Tucker

Yes.

that. really to Nephrologists clinic. have a is Stacy, clinics Steve good IV failure, I point, don't the that in at sometimes access think really made they'll have failure heart heart

using of them nothing to out So else you use. they -- a lot of have diuretics metolazone non-loop hear like sheer

and So we've market the reception been CKD. our enthused about research in

Steve Parsons

of had was lots a of [ just Society that leads. and ago American Nephrology positive, We ] very meeting week

Operator

from Wainwright. Our Doug Instructions] next [Operator Tsao question H.C. with comes

Douglas Tsao

John, I some a the the of guess dynamics that to a end you little of I'm than understand quarter expected. a of to led write just slower little of bit trying little it of to less bit script Was sort sort prescribers breadth your writing individuals? diminished through did started your bit frequently as your that Or of quarter? a the the around

John Tucker

quarter in. second we with were we coverage Doug, of handicap went. really And how was I can't the didn't the you fully -- guess, really it gap something -- the disappointed rebates Yes, play how your half

to the XX.X%. rebates -- our in X was XX%. range hurt came at coverage It So a which gap given had XX% of us GTN, kind we in One, in places. of

high been $XXX,XXX in end. costs revenue. a there over Obviously, little you the we've above So point every

afford can your higher hurts that's But what us. And XX% it. paying all high of the coverage is And a they of pay they to flip get those it that hurt it, patients the you when abandon gap that flip is rebate ones of it, on drove pay the then have we you're really that co-pay, the on side on GTN. So when patients in because side patients. co-pays, know the rebate the GTN

saw in that, through patients catastrophic any, all didn't the good co-pays gap, we lower. growth coverage and there have a lower gap responsibility are the we did So of in now X the them co-pay. in not are lot fill about about that QX, is -- their continued scripts where our script silver are in These the -- patients thing things gone typically linings that good the The is if and were written. these of because

helps year, helps more gap than GTN have they then $XXX. and go don't And at the fill it smooth, be patients cannot our to So rate. any where the you again, pockets, coverage redesign if out of next all you as

level be. the coverage to that's really but what in to the coverage -- the But are hard didn't and the of quarter patients -- early quarter, We that phenomenon going what it's on through had hadn't. So It's going anticipate gap be we in the it the clearly that third, gap. always rebates is gotten a what a what gap. second anticipate in to thought gaps co-pay they coverage early

the coming it It's continued much As in in, demand looking than were in we fill script the co-pays was just they were the of anticipated. But grow. at half to of was we there, the the higher the higher second half quarter first that the quarter. was rate than had

Operator

comes Our next Chase Craig-Hallum. with from Knickerbocker question

Chase Knickerbocker

guess, missed conversion here, of of in the if what some you improvement And quarter? jumping calls kind around what sorry there? I third was on rate sequentially kind I did and see first, Just it, the

John Tucker

Yes.

was your... Steve, what So,

Steve Parsons

QX ]. them the the the It and We Rxs said about by of earlier declining compared XX% end the rate coverage gap some ended we in the to Rxs. was patients, treatment quarter of up cost as [ of higher, XX% XX% fill of with quarter moderated of in at

John Tucker

mind And on have product keep we of just also still layaway our fill and the -- of coverage in dynamics determination. rate putting doctors doing

challenged gap patients noisy, bit But in XX% always rebate but So by coverage a go QX QX. to up the it's about from quarter. clearly it did

Chase Knickerbocker

it. Got

in in from is the bit And kind kind sequentially Was that of standpoint can of how growth. so dynamic? talk kind of looks you'd a we QX? other this Or there John, are then, gap as here, call little so quarter rate through QX far doses out? And any largely decelerated to that coverage kind you written that halfway a dynamics of of conversion

John Tucker

Yes.

include the growth So to gap go coverage to saw QX. QX scripts the back which We you... did on to fill written number business filled the the growth again, -- from from see IDNs, far, rate, gets well, that and QX script in units QX continues yes, thing QX, we grow. the added do QX, doesn't about we in to rise that, so where as of to a In Steve, and about That XX%. IDNs

Steve Parsons

XX%. XX%,

John Tucker

XX%, XX%.

But a still and as the into gap seeing think layaway determination I the writing coverage, co-pay phenomenon get we're little patients doctors we tick of scripts. up have through catastrophic. and

last. up seeing -- quarter last trended before. So trending this It up are but versus we it quarter the quarter versus

So where are. that's we

Chase Knickerbocker

Part then the Got the into far green question that the bit what reps there? of D progress kind see of far kind early of improving kind that think far? last, generating parlays early to guys, well, talk conversion on were for and and with a all thus rate increased new in you demand going? year. I'm kind again, where shoots kind of can any hopefully If kind do of of we any as hired questions, as And it. redesign little know around days, my for of kind but updated rates that as you kind conversion their return it's QX? Happy can sorry And next thus about that of expectations any I

John Tucker

Yes.

them thing the we to new of field reps I percentage think get new didn't until October. every -- answer contributing. -- started the the what already reps, at day of the first. question in have look the the is territories the so beginning Yes, week, me are let territories every one out we contribute. We second new really And in

them rate in or -- new But, why them Chase, now. and of We contribution. They're up up. call we to year converting have will on ticking model seen to we usually X think any where are us. I field. these tell The next talked think doctors said the write get you get what, it, think seen really in weeks it was to where a territories. their takes I it a is year. And in excited They competitor there so to you I impact make We're fill no doctors we're and So about be of a continue and are to we have because and patients contribution. then is in redesign, to is QX. co-pay. number a That's tick will But know really, this we've times got for able really beneficial reps we to about the there's yes, them where you really can bit smooth X category our

coverage be and $XXX and $X,XXX, patients, going they're those $X,XXX, these gap all some So co-pays for And failure to month. these are that we're at of of are that's a big, big, meds. co-pays, over heart their talking

XX% projecting rate. we're So fill

Now, but a rate, from there's we're what up get out great. that's afford bit. out the already the the to as fill more more the of are they plans -- you'll is prescribing patients customize little the the it forms for a payers sign smoothing, how CMS form, on is the all drug. patients that And doctors also does But with their can understand plans

and of but them them. we're them specialty sign them up We the hubs. We hands in planned the provide certainly They're to helping forms. pharmacies of And have to into up, the our our can can't all signed smoothing. we get form the sign

a impact think be I rate, could Could But So jump it Yes, in we also your XX%. fill in prescriptions jump think written. higher? but a is that, of big obviously, be. the that big being

our force we for Class at It's this look labeling. quarter. in sales It's expansion. So coming IV the a tailwinds the --

full you're beginning comes to you're of for have those IV to might which the going benefit And redesign, the Class For even you're have impactful March. and all next going quarter CKD of be expansion, March, force the of year, our at benefit have in then going here of of in sales benefit most the the January, things. the of to indication

think we year year. us up So interesting a it's setting next really for for

Operator

the reached turn I ahead, sir. of to Please our John closing for would comments. like have session. to question-and-answer floor now end the back We over go

John Tucker

Thank this you much our and afternoon. concludes very that call

stated, we of encouraged remain consistently on and FUROSCIX the feedback launch ongoing accepted is FUROSCIX overwhelmingly are how have performing field. receiving we by the being positive As well and in

to very the indication have tailwinds XXXX. at the IV our forward into number the quarter a I and label force, you Thank We sales we go as expanded Class much. and Medicare that quarter XXXX our the redesign XXXX, fourth through takes of January and including back expansion, the look successful CKD in a first effect QX of X, providing next update.

Operator

teleconference. today's concludes This

you for disconnect time. your at You participation. this Thank lines your may

scPharmaceuticals (SCPH) 13 Nov 242024 Q3 Earnings call transcript