Release Date: May 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 continuation of positive trends with growing awareness and utilization of Furoscix, reflecting a solid quarter.
- Net revenue reached $6.1 million, despite a 10% negative impact from the Change Healthcare cyberattack and seasonal effects related to patient deductibles resetting.
- The company has expanded the population of heart failure patients with access to Furoscix under favorable Medicare terms, moving closer to their goal of 75% or more over time.
- scPharmaceuticals Inc (SCPH) has initiated a pivotal PK study for a new 80 mg over 1 mL low-volume auto-injector, which could potentially reduce manufacturing costs and offer environmental benefits.
- The company submitted a supplemental new drug application for the treatment of edema due to fluid overload in patients with chronic kidney disease (CKD), expanding potential market opportunities.
Negative Points
- The gross-to-net discount increased to 19% from the previous year, with expectations it will approach 30% to 35% by year-end, indicating rising costs in payer contracting.
- The cyberattack by Change Healthcare negatively impacted the doses filled during the quarter, although the company managed to mitigate some of the effects.
- Cancellation rates for prescriptions were high at 19% in Q1 2024, influenced by various factors including the cyberattack.
- The company reported a net loss of $14.1 million for Q1 2024, an increase from the net loss of $11.2 million in Q1 2023, reflecting higher operational costs.
- Despite an increase in unique prescribers and doses written, the fill rate of prescriptions remains a challenge, affected by external factors and system transitions.
Q & A Highlights
Q: Can you explain why the revenue was flat sequentially despite a 15% increase in doses filled from the previous quarter?
A: John Tucker, CEO of scPharmaceuticals, explained that the flat revenue, despite increased doses filled, was due to a large order from Kaiser in Q4 that was included in net revenue but not in fill doses. Additionally, the Change Healthcare cyberattack and the resetting of patient deductibles at the start of the year affected the revenue.
Q: How are the discussions with managed care companies progressing, and what feedback are you receiving from doctors about prescribing Furoscix?
A: Steven Parsons, Senior VP of Commercial, noted that discussions with payers are positive, with most prescriptions getting covered at affordable co-pays. Doctors are not facing significant issues in prescribing Furoscix, reflecting effective engagement with both payers and providers.
Q: What are your expectations regarding seasonality in demand for Furoscix, and what plans are in place to capture patient share during high-demand quarters?
A: CEO John Tucker mentioned that while there is some seasonality, particularly in Q1 due to deductible resets, Q4 sees increased prescriptions due to holiday-related dietary indulgences. They plan to manage these fluctuations through strategic prescriber engagement and inventory management.
Q: Could the transition to a new patient services provider and specialty pharmacy network impact inventory or streamline the process of getting Furoscix to patients?
A: John Tucker clarified that the transition would not impact inventory levels but is expected to improve the patient and physician experience and streamline the delivery process, enhancing overall efficiency.
Q: With the upcoming PDUFA date for the Class 4 heart failure indication, do you plan any changes in field force strategy or physician education?
A: Upon approval, the company plans immediate notification and education for providers about the new indication, leveraging both direct and indirect promotional activities to ensure physicians are aware that more severe heart failure patients can now be treated with Furoscix.
Q: How has the script fill rate normalized post the Change Healthcare cyberattack, and what are the long-term expectations for doses per script?
A: CEO John Tucker confirmed that the fill rate has returned to normal levels. He also noted that while the average doses per script are currently higher than expected, they anticipate it will moderate, influenced by payer contracts and ongoing usage patterns.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
