Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- scPharmaceuticals Inc (SCPH, Financial) reported a net revenue of $8.1 million for Q2 2024, representing a sequential growth of 33% compared to Q1 2024.
- The company secured financing up to $175 million, which extends their cash runway through profitability.
- FDA approved the supplemental new drug application to expand the FUROSCIX label to include all heart failure patients, including Class IV.
- Positive top-line study results from a PK study for the low-volume autoinjector in development, achieving primary pharmacokinetic and secondary pharmacodynamic endpoints.
- The company plans to expand its sales force to 90 territories by the end of Q3 2024 to support the expanded label and increased demand.
Negative Points
- scPharmaceuticals Inc (SCPH) reported a net loss of $17.1 million for Q2 2024, compared to a net loss of $14.2 million for Q2 2023.
- The gross-to-net discount is expected to increase over time, potentially impacting net revenue.
- The transition to a new patient services hub caused a temporary decrease in fill rates, negatively impacting Q2 2024 net sales.
- Selling, general, and administrative expenses increased to $17.5 million in Q2 2024, up from $12.1 million in Q2 2023.
- The company anticipates a long-term gross-to-net discount in the range of 30% to 35%, which could affect profitability.
Q & A Highlights
Q: How much could the average number of doses per prescription for FUROSCIX increase with the new label for Class IV? How fast can clinicians start prescribing FUROSCIX for Class IV patients? Are there any hurdles or logistics they might need to get through?
A: (Steve Parsons, Vice President, Head of Commercial) It is hard to predict the exact impact, but Class IV patients may need 9 to 12 doses based on symptom severity and could get prescriptions as often as every month or every other month. Prescriptions for Class IV patients should start next week as the sales force will be trained and payers will update their systems to reflect the new label.
Q: Thinking ahead to potential approval for CKD patients with edema, how are you planning to expand the field force size? What metrics will signal the need for expansion?
A: (John Tucker, President, Chief Executive Officer, Director) We are moving to 90 reps based on increasing demand and the label expansion to Class IV. For CKD, we plan to expand to 130 reps, covering nephrologists and cardiologists. This will be one sales force calling on both specialties.
Q: Can you talk about your ongoing preparations for the expansion this month and the level of enthusiasm from KOLs? Do you expect early adopters to start prescribing for recurring Class IV patients?
A: (Steve Parsons, Vice President, Head of Commercial) We know the advanced heart failure clinics and specialists well. Reps are eager to share the good news about the label expansion. We have a hit list of doctors to visit first and will also use email blasts to reach a broader audience. We are well-prepared to meet this unmet need.
Q: Can you speak to what the new hub is doing differently to drive such a dramatic improvement in fill rates?
A: (Steve Parsons, Vice President, Head of Commercial) The new hub is all online, allowing doctors to submit orders, see prior authorization status, copays, and shipment details in real-time. This modern, optimal system encourages more prescriptions and faster fills. The chat function also facilitates better communication between case managers and medical staff.
Q: What should we think about for the cadence of growth to net changes? Do we get to 30% to 35% GTN next year with Medicare changes or through contracting with larger PDP, Medicare Advantage plans?
A: (John Tucker, President, Chief Executive Officer, Director) We expect GTN to increase in the second half of this year due to more IDN business. For next year, mandatory rebates with Medicare and supplemental rebates with Medicare payers will drive GTN to 30% to 35%. The redesign of patient co-pays will also help improve fill rates.
Q: Will Medicare beneficiaries quickly grasp the changes in co-pays next year, or will it take time? How do you think this will impact fill rates?
A: (John Tucker, President, Chief Executive Officer, Director) It won't change overnight, but we will educate patients and physicians about the new co-pay structure. We expect fill rates to improve significantly once patients and physicians understand the changes, especially after reaching the catastrophic phase where there will be no co-pay friction.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
