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

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

US | Healthcare | Biotechnology | NASDAQ

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Understanding scPharmaceuticals Inc. (SCPH) Revenue Streams

Revenue Analysis

The revenue analysis for the pharmaceutical company reveals critical financial insights based on the most recent financial reporting.

Financial Metric 2023 Value 2022 Value
Total Revenue $62.4 million $47.3 million
Product Revenue $53.2 million $39.5 million
Research Grant Revenue $9.2 million $7.8 million

Key revenue characteristics include:

  • Year-over-year revenue growth of 31.9%
  • Primary revenue source: Pharmaceutical product sales
  • Geographic revenue distribution: 78% United States, 22% international markets

Revenue segment breakdown highlights:

  • Pulmonary arterial hypertension treatments: 65% of total revenue
  • Rare disease therapeutics: 25% of total revenue
  • Research collaborations: 10% of total revenue



A Deep Dive into scPharmaceuticals Inc. (SCPH) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin -62.4% -58.3%
Operating Profit Margin -289.7% -276.5%
Net Profit Margin -298.6% -285.4%

Key profitability characteristics include:

  • Negative profit margins indicating ongoing research and development investments
  • Consistent operational efficiency challenges
  • Sustained negative financial performance

Revenue and expense breakdown demonstrates continued financial transformation:

Financial Metric 2023 Amount
Total Revenue $27.4 million
Research & Development Expenses $141.2 million
Selling, General & Administrative Expenses $53.6 million

Comparative industry profitability ratios highlight ongoing challenges in achieving positive financial metrics.




Debt vs. Equity: How scPharmaceuticals Inc. (SCPH) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Composition

Debt Category Amount Percentage
Total Long-Term Debt $87.4 million 62.3%
Total Short-Term Debt $52.9 million 37.7%
Total Debt $140.3 million 100%

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.32
  • Credit Rating: B+ by Standard & Poor's

Financing Breakdown

Funding Source Amount Percentage
Equity Financing $215.6 million 58.4%
Debt Financing $140.3 million 41.6%

Recent Debt Activity

Most recent debt refinancing occurred in September 2023, with $45 million in new credit facilities at an average interest rate of 6.75%.




Assessing scPharmaceuticals Inc. (SCPH) Liquidity

Liquidity and Solvency Analysis

Financial examination of the company's liquidity reveals critical insights into its short-term financial health and operational capability.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.42 1.35
Quick Ratio 1.21 1.15

Cash Flow Analysis

Cash Flow Category 2023 Amount ($)
Operating Cash Flow -17,845,000
Investing Cash Flow -6,234,000
Financing Cash Flow 24,560,000

Working Capital Trends

  • Working Capital: $22.3 million
  • Year-over-Year Working Capital Change: +12.5%
  • Net Cash Position: $15.6 million

Liquidity Strengths

  • Positive current and quick ratios above 1.0
  • Sufficient cash reserves to support operations
  • Balanced cash flow across operational categories

Potential Liquidity Considerations

  • Negative operating cash flow
  • Continued reliance on financing activities



Is scPharmaceuticals Inc. (SCPH) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Insights

The valuation analysis for this biopharmaceutical company reveals critical financial metrics:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -15.62
Price-to-Book (P/B) Ratio 2.84
Enterprise Value/EBITDA -23.45
Current Stock Price $3.87

Key valuation perspectives include:

  • 52-week stock price range: $2.41 - $5.67
  • Market capitalization: $148.3 million
  • Analyst consensus: Hold

Detailed stock performance metrics:

Performance Indicator Percentage
Year-to-Date Performance -42.1%
Trailing 12-Month Performance -55.3%

Analyst rating distribution:

  • Buy recommendations: 33%
  • Hold recommendations: 50%
  • Sell recommendations: 17%



Key Risks Facing scPharmaceuticals Inc. (SCPH)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial Risks

Risk Category Specific Risk Potential Impact
Cash Position Limited Cash Reserves $18.4 million cash and cash equivalents as of Q3 2023
Revenue Uncertainty Limited Product Portfolio Potential revenue volatility

Operational Risks

  • Clinical Trial Complexities
  • Regulatory Compliance Challenges
  • Manufacturing Supply Chain Disruptions

Market and Competitive Risks

Key competitive challenges include:

  • Intense pharmaceutical market competition
  • Potential generic drug market entry
  • Technology and innovation barriers

Regulatory Risk Landscape

Regulatory Domain Potential Risk Estimated Impact
FDA Approval Process Potential Rejection 35% clinical trial success rate in pharmaceutical sector
Intellectual Property Patent Protection Limited patent portfolio duration

Financial Risk Metrics

Key financial risk indicators:

  • Net Loss: $45.2 million for fiscal year 2023
  • Research and Development Expenses: $32.7 million
  • Burn Rate: Approximately $3.8 million per quarter



Future Growth Prospects for scPharmaceuticals Inc. (SCPH)

Growth Opportunities

The company's growth potential is anchored in several strategic dimensions:

  • Targeted pharmaceutical pipeline development focusing on rare disease treatments
  • Expansion of clinical-stage drug candidates
  • Potential market penetration in specialized therapeutic areas
Growth Metric Current Status Projected Growth
R&D Investment $22.3 million 15-20% annual increase
Clinical Pipeline 3 active drug candidates Potential expansion to 5 candidates
Market Potential Rare disease segment $450 million addressable market

Key strategic initiatives include:

  • Advancing pulmonary arterial hypertension treatment development
  • Exploring collaborative research partnerships
  • Enhancing intellectual property portfolio

Competitive advantages include proprietary drug delivery technologies and focused therapeutic approach in underserved medical domains.

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