Breaking Down scPharmaceuticals Inc. (SCPH) Financial Health: Key Insights for Investors

Are you keeping a close watch on scPharmaceuticals Inc. (SCPH) and wondering about its financial stability? Did you know that scPharmaceuticals Inc. reported a net FUROSCIX revenue of $36.3 million for the full year 2024, marking a 167% increase compared to 2023? As of December 31, 2024, the company holds $75.7 million in cash and cash equivalents. But how do these figures really paint the picture of its overall financial health? Keep reading to explore key financial insights that can help you make informed decisions.

scPharmaceuticals Inc. (SCPH) Revenue Analysis

Analyzing scPharmaceuticals Inc.'s financial health involves understanding its revenue streams, growth, and segment contributions. Here's a detailed breakdown based on available information.

scPharmaceuticals Inc. focuses on developing and commercializing products that address the needs of patients. Key aspects of their revenue include:

• Primary Revenue Sources: scPharmaceuticals generates revenue primarily from sales of its lead product, FUROSCIX®. This is a proprietary formulation of furosemide delivered via a subcutaneous injection for the treatment of congestion due to heart failure.
• Year-over-Year Revenue Growth: Monitoring the year-over-year revenue growth rate provides insights into the company's performance and market acceptance of FUROSCIX®.
• Business Segments: Currently, scPharmaceuticals operates as a single business segment focused on the development and commercialization of FUROSCIX®.
• Significant Changes in Revenue Streams: Investors should monitor any potential changes such as new product launches, expanded indications for FUROSCIX®, or partnerships that could impact revenue streams.

To gain a clearer picture, a detailed table summarizing key revenue figures can be helpful. Please note that specific figures for 2024 are not available in the search snippets. However, I can provide a general framework for how this data is typically presented and analyzed.

For detailed insights into scPharmaceuticals Inc. and its investors, check out: Exploring scPharmaceuticals Inc. (SCPH) Investor Profile: Who’s Buying and Why?

scPharmaceuticals Inc. (SCPH) Profitability Metrics

Analyzing scPharmaceuticals Inc.'s (SCPH) profitability involves examining several key financial metrics. For the full year 2024, the company reported a net loss of $85.1 million, compared to a net loss of $54.8 million in 2023. Despite increased revenue, the company has struggled to achieve profitability.

Here's a breakdown of scPharmaceuticals Inc.'s (SCPH) profitability metrics:

• Gross Profit: For the full year 2024, scPharmaceuticals generated net FUROSCIX revenue of $36.3 million.
• Operating Profit: The company's operating profit margin for 2024 was -178.29%.
• Net Profit Margin: The net profit margin for 2024 was -234.36%.

The cost of product revenues for the full year 2024 was $11.4 million, compared to $3.8 million for the full year 2023. This increase is attributed to higher demand for FUROSCIX and related manufacturing costs.

Selling, general, and administrative (SG&A) expenses were $77.6 million for the full year 2024, compared to $53.4 million for 2023. The increase was primarily due to higher employee-related costs, commercial preparation costs, and patient support expenses.

Research and development (R&D) expenses were $3.2 million for the fourth quarter of 2024. For the full year 2024, R&D expenses totaled $12.1 million, slightly up from $11.8 million in 2023.

Here is a table summarizing the financial performance of scPharmaceuticals Inc. (SCPH):

Despite the challenges, scPharmaceuticals has several positive developments:

• Revenue Growth: Net FUROSCIX revenue increased by 167% year-over-year, reaching $36.3 million for the full year 2024.
• FDA Approval: The FDA approved the expanded label indication for FUROSCIX to include the treatment of edema in patients with chronic kidney disease.
• Market Expansion: The company has expanded its market reach, particularly in the Class IV heart failure patient population.

The gross-to-net discount for FUROSCIX was approximately 19% in the fourth quarter of 2024, and is expected to rise to 30-35% in 2025 due to Medicare redesign impacts.

For insights into the company's goals, review the Mission Statement, Vision, & Core Values of scPharmaceuticals Inc. (SCPH).

As of December 31, 2024, scPharmaceuticals had 50,095,689 shares outstanding and cash and cash equivalents of $75.7 million.

scPharmaceuticals Inc. (SCPH) Debt vs. Equity Structure

Understanding how scPharmaceuticals Inc. (SCPH) finances its operations and growth is crucial for investors. The balance between debt and equity reveals insights into the company's financial risk and potential returns. Here’s a breakdown of scPharmaceuticals Inc. (SCPH)'s debt and equity structure:

As of the fiscal year 2024, scPharmaceuticals Inc. (SCPH) showcases the following financial structure:

• Debt Levels: scPharmaceuticals Inc. (SCPH) carries a significant amount of debt.
• Long-term Debt: The company's long-term debt stands at approximately $128.2 million.
• Short-term Debt: In contrast, scPharmaceuticals Inc. (SCPH) has a smaller amount of short-term debt, totaling around $0.36 million.

To evaluate scPharmaceuticals Inc. (SCPH)'s financial leverage, the debt-to-equity ratio is a key metric. As of 2024, scPharmaceuticals Inc. (SCPH.)'s debt-to-equity ratio is approximately 16.72. This ratio indicates that the company's debt is 16.72 times its equity. When compared to the industry average, it’s important to consider that the biotechnology and pharmaceutical sectors often have varying capital structures depending on their stage of development and investment in research and development.

Recent financial activities provide further insight into scPharmaceuticals Inc. (SCPH)'s financial strategy:

• Recent Debt Issuances: scPharmaceuticals Inc. (SCPH) has not engaged in any new debt issuance activities.
• Credit Ratings: Currently, scPharmaceuticals Inc. (SCPH) does not have any credit ratings.
• Refinancing Activity: There is no recent refinancing activity for scPharmaceuticals Inc. (SCPH).

Balancing debt and equity is critical for scPharmaceuticals Inc. (SCPH). The company’s high reliance on debt financing can amplify both gains and losses. While debt can fuel expansion and innovation, it also introduces financial risk, particularly if the company faces challenges in meeting its obligations. scPharmaceuticals Inc. (SCPH) must strategically manage its debt levels to ensure sustainable growth and stability.

For more detailed insights into scPharmaceuticals Inc. (SCPH)'s financial health, you can read the full analysis here: Breaking Down scPharmaceuticals Inc. (SCPH) Financial Health: Key Insights for Investors

scPharmaceuticals Inc. (SCPH) Liquidity and Solvency

Understanding a company's financial health requires a close look at its liquidity and solvency. For scPharmaceuticals Inc. (SCPH), assessing these aspects provides insights into its ability to meet short-term obligations and sustain long-term operations. Liquidity measures the company's capacity to cover its immediate liabilities, while solvency indicates its ability to meet long-term debts.

Assessing scPharmaceuticals Inc.'s Liquidity:

Analyzing scPharmaceuticals Inc.'s liquidity involves key financial ratios and cash flow trends:

• Current and Quick Ratios: These ratios offer a snapshot of scPharmaceuticals Inc.'s ability to cover its short-term liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Monitoring the trends in scPharmaceuticals Inc.'s working capital, which is the difference between its current assets and current liabilities, is vital. A positive working capital balance indicates that the company has enough liquid assets to cover its short-term obligations.
• Cash Flow Statements Overview: Examining scPharmaceuticals Inc.'s cash flow statements provides a deeper understanding of its liquidity position. The cash flow statement is divided into three sections:
  • Operating Activities: This section shows the cash generated or used from the company's core business operations. Positive cash flow from operations indicates that the company is generating enough cash from its primary activities to sustain its business.
  • Investing Activities: This section includes cash flows from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
  • Financing Activities: This section involves cash flows related to debt, equity, and dividends.

By evaluating these cash flow trends, investors can gain insights into scPharmaceuticals Inc.'s ability to manage its cash and meet its financial obligations.

For more insights into the company's strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of scPharmaceuticals Inc. (SCPH).

scPharmaceuticals Inc. (SCPH) Valuation Analysis

Determining whether scPharmaceuticals Inc. (SCPH) is overvalued or undervalued requires a multifaceted approach, considering various financial metrics and market dynamics. Here’s an overview of key valuation indicators:

Relative Valuation Ratios:

These ratios provide a snapshot of how the company's market value compares to its financial performance:

• Price-to-Earnings (P/E) Ratio: As of its last trading day, December 6, 2023, scPharmaceuticals Inc. (SCPH) had a P/E ratio of -2.14. This negative value suggests that the company had negative earnings, which is not uncommon for growth-stage pharmaceutical companies focusing on R&D and not yet profitable.
• Price-to-Book (P/B) Ratio: The P/B ratio, which compares a company’s market capitalization to its book value of equity, is another important metric. As of December 6, 2023, scPharmaceuticals Inc. (SCPH) had a P/B ratio of 3.79.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company’s enterprise value (market cap plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). As of December 6, 2023, scPharmaceuticals Inc. (SCPH) had an EV/EBITDA ratio of -1.81.

Stock Price Trends:

Analyzing the stock price trends can reveal investor sentiment and market perception of the company's future prospects. scPharmaceuticals Inc.'s (SCPH) stock demonstrated significant volatility over the past year. As of December 6, 2023, SCPH was trading at $11.44. The stock's 52-week range was between $3.85 and $12.37, reflecting a wide swing in investor confidence and market conditions.

Dividend Yield and Payout Ratios:

As scPharmaceuticals Inc. (SCPH) does not currently offer dividends, dividend yield and payout ratios are not applicable.

Analyst Consensus:

Analyst ratings provide a consolidated view on the stock’s potential. The consensus among analysts can offer insights into whether the stock is currently viewed as a buy, hold, or sell. According to the analyst consensus as of December 6, 2023, scPharmaceuticals Inc. (SCPH) was rated as a 'moderate buy.' The consensus price target was $21.50, suggesting a potential upside of 87.94% from the current price of $11.44.

Additional Valuation Considerations:

Below is a summary of scPharmaceuticals Inc.'s (SCPH) key financial metrics:

These valuation metrics, combined with stock price trends and analyst opinions, are crucial for investors looking to assess whether scPharmaceuticals Inc. (SCPH) is currently overvalued or undervalued. Keep in mind that these metrics provide a snapshot in time and should be considered alongside a comprehensive understanding of the company's financials, industry trends, and future growth prospects.

To gain more insight into who is investing in scPharmaceuticals Inc. (SCPH) and why, check out this related article: Exploring scPharmaceuticals Inc. (SCPH) Investor Profile: Who’s Buying and Why?

scPharmaceuticals Inc. (SCPH) Risk Factors

scPharmaceuticals Inc. (SCPH) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges, external market pressures, and regulatory hurdles. Understanding these factors is crucial for investors assessing the company's long-term viability.

Industry Competition: The pharmaceutical industry is intensely competitive. scPharmaceuticals Inc. (SCPH) competes with large pharmaceutical companies with significantly greater resources. These competitors may develop and market products that are more effective or cheaper, which could reduce the demand for scPharmaceuticals Inc. (SCPH)'s products.

Regulatory Changes: The development, manufacturing, and marketing of pharmaceutical products are subject to extensive regulation by governmental authorities in the United States and other countries. Changes in these regulations can increase the time and cost associated with bringing new products to market and can affect the profitability of existing products.

Market Conditions: Economic downturns, changes in healthcare policies, and shifts in market preferences can all affect the demand for scPharmaceuticals Inc. (SCPH)'s products. For example, increased pressure on drug pricing or changes in insurance coverage could reduce the company's revenue.

Operational Risks:

• Manufacturing Issues: Any disruption in the manufacturing process, whether due to equipment failure, quality control issues, or supply chain problems, can lead to product shortages and delays, negatively impacting revenue.
• Commercialization Risks: The successful commercialization of scPharmaceuticals Inc. (SCPH)'s products depends on its ability to effectively market and sell them. This includes building a strong sales force, securing favorable reimbursement from payers, and convincing healthcare providers to prescribe the company's products.

Financial Risks:

• Need for Additional Funding: Pharmaceutical companies often require significant capital to fund research and development, clinical trials, and commercialization activities. scPharmaceuticals Inc. (SCPH) may need to raise additional funds through equity or debt financing, which could dilute existing shareholders or increase the company's debt burden.
• Dependence on Key Products: If scPharmaceuticals Inc. (SCPH) relies heavily on a small number of products for the majority of its revenue, any issues affecting those products (e.g., patent expiration, competition, safety concerns) could have a major impact on its financial performance.

Strategic Risks:

• Acquisition and Integration Risks: If scPharmaceuticals Inc. (SCPH) pursues acquisitions to expand its product portfolio or market presence, it faces the risk that it may overpay for acquisitions or that it may have difficulty integrating acquired businesses.
• Reliance on Partnerships: scPharmaceuticals Inc. (SCPH) may rely on partnerships with other companies to develop and commercialize its products. Any disputes or difficulties with these partners could delay or disrupt the company's plans.

Mitigation strategies often involve diversifying product lines, securing intellectual property rights, and maintaining strong relationships with regulatory agencies. Continuous monitoring of the competitive landscape and adaptation to changing market conditions are also vital.

For more insights into scPharmaceuticals Inc. (SCPH), check out: Exploring scPharmaceuticals Inc. (SCPH) Investor Profile: Who’s Buying and Why?

scPharmaceuticals Inc. (SCPH) Growth Opportunities

scPharmaceuticals Inc. (SCPH) is focused on developing and commercializing products that address the needs of patients requiring subcutaneous drug delivery. Future growth prospects hinge on several key factors, including product innovation, market expansion, strategic initiatives, and competitive advantages.

Key growth drivers for scPharmaceuticals Inc. (SCPH) include:

• Product Innovation: Continued development and approval of new formulations and delivery methods for existing drugs can expand the company's product portfolio and market reach.
• Market Expansion: Successfully penetrating new geographic markets and expanding the indications for its lead product, FUROSCIX, are critical for revenue growth.
• Strategic Initiatives: Partnerships with other pharmaceutical companies or healthcare providers can accelerate product development and commercialization efforts.
• Acquisitions: Strategic acquisitions of complementary technologies or products could broaden the company's offerings and market presence.

Future revenue growth projections and earnings estimates for scPharmaceuticals Inc. (SCPH) will depend heavily on the commercial success of FUROSCIX and the advancement of its pipeline products. As of the 2024 fiscal year, scPharmaceuticals is focused on optimizing the market penetration of FUROSCIX for outpatient treatment of heart failure.

Strategic initiatives that may drive future growth include:

• Lifecycle Management: Developing new formulations or delivery methods for FUROSCIX to extend its market exclusivity and address unmet patient needs.
• Clinical Trials: Conducting clinical trials to support the use of FUROSCIX in additional indications or patient populations.
• Commercial Partnerships: Collaborating with other companies to co-promote or distribute FUROSCIX in specific geographic markets or healthcare settings.

scPharmaceuticals Inc. (SCPH) possesses several competitive advantages that could position it for growth:

• Proprietary Technology: The company's subcutaneous drug delivery technology provides a differentiated approach to drug administration, potentially offering improved patient convenience and adherence.
• Established Manufacturing and Supply Chain: scPharmaceuticals Inc. (SCPH) has established a reliable manufacturing and supply chain infrastructure to support the commercialization of FUROSCIX.
• Experienced Management Team: The company's management team has a proven track record of developing and commercializing pharmaceutical products.

For more detailed insights into scPharmaceuticals Inc. (SCPH)'s financial health, you can refer to this analysis: Breaking Down scPharmaceuticals Inc. (SCPH) Financial Health: Key Insights for Investors