On August 14, 2024, scPharmaceuticals Inc (SCPH, Financial) released its 8-K filing reporting financial results for the second quarter ended June 30, 2024. scPharmaceuticals Inc is a pharmaceutical company focused on developing and commercializing products that have the potential to optimize the delivery of infused therapies, advance patient care, and reduce healthcare costs. The company's main product is FUROSCIX, a patented formulation of furosemide for subcutaneous administration with a wearable, portable sc2Wear Infusor for the treatment of edema in patients with heart failure.
Performance Overview
scPharmaceuticals Inc reported net FUROSCIX revenue of $8.1 million for Q2 2024, reflecting a 33% sequential increase from Q1 2024. This revenue figure aligns closely with the analyst estimate of $8.09 million. However, the company reported a net loss of $17.1 million, translating to an earnings per share (EPS) of -$0.44, which missed the analyst estimate of -$0.41.
Financial Achievements and Challenges
Despite the revenue growth, scPharmaceuticals Inc faced significant challenges. The cost of product revenues increased to $2.3 million in Q2 2024 from $0.4 million in Q2 2023, driven by higher demand and related manufacturing costs. Additionally, selling, general, and administrative expenses surged to $17.5 million from $12.1 million in the same period last year, primarily due to increased employee-related costs, commercial costs, product samples, and patient support.
“We continued to see growth during the second quarter, with net FUROSCIX revenue of $8.1 million on approximately 9,300 doses filled, representing sequential growth of 33% and 15%, respectively, from the first quarter 2024,” stated John Tucker, President, and Chief Executive Officer of scPharmaceuticals.
Income Statement Highlights
| Metric | Q2 2023 | Q2 2024 |
|---|---|---|
| Product Revenues | $1.6 million | $8.1 million |
| Cost of Product Revenues | $0.4 million | $2.3 million |
| Research and Development Expenses | $2.9 million | $2.7 million |
| Selling, General and Administrative Expenses | $12.1 million | $17.5 million |
| Net Loss | $14.2 million | $17.1 million |
Balance Sheet and Cash Flow
As of June 30, 2024, scPharmaceuticals Inc had $38.5 million in cash, cash equivalents, and short-term investments, down from $76.0 million as of December 31, 2023. The company’s total assets stood at $65.5 million, while total stockholders' equity was $9.3 million. The term loan increased slightly to $40.0 million from $38.8 million at the end of 2023.
Business Update and Future Outlook
scPharmaceuticals Inc has made significant strides in its growth initiatives for FUROSCIX, including label expansion for heart failure and a supplemental New Drug Application (sNDA) submission for chronic kidney disease. The company also reported positive topline pivotal pharmacokinetic (PK) data for its autoinjector. These advancements are crucial as they aim to expand the market reach and acceptance of FUROSCIX.
“We also achieved meaningful progress across our life cycle management and long-term growth initiatives for FUROSCIX that we previously announced. We received FDA approval to expand the FUROSCIX indication to include the sickest heart failure patients, including those classified as NYHA Class IV,” added Mr. Tucker.
Conclusion
While scPharmaceuticals Inc has demonstrated robust revenue growth and significant advancements in its product pipeline, the company continues to face challenges related to rising costs and net losses. Investors will be keenly watching how the company manages these challenges and capitalizes on its growth initiatives to achieve profitability.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from scPharmaceuticals Inc for further details.
