Q2 2025 Update: SC Pharma Took a 4% Hit — Here’s Why

So, SC Pharma (SCPH) dropped about 4% after reporting their Q2 2025 update on August 7 even though revenue was up big both quarter-over-quarter and year-over-year. At first glance, that makes no sense, right? But here’s what I think is going on.

The Kidney Doctor Puzzle

They’ve got this new kidney indication approval, and management made it sound like they were breaking into that market fast. Turns out… not so much. Apparently, tracking down and getting in front of these kidney specialists is harder than it sounds. That means the revenue boost from this segment isn’t hitting as quickly as investors (including me) were hoping.

Revenue Growth vs. Wall Street’s Forecast

Yes, revenue grew — but maybe not at the pace the Street wanted. With consensus estimates hovering around $75M for the full year, the latest quarter’s numbers, while solid, may have fallen a bit short of the growth trajectory analysts were expecting. That alone can take some wind out of a hot stock’s sails.

Valuation Is Stretched Compared to Peers

At the current price, SCPH is trading at about 5.5x Price/Sales. That’s rich compared to early-commercial-stage biotech peers, which tend to sit closer to a median of ~3.5x. High valuations mean higher expectations — and a smaller margin for error.

Cash on Hand — And a Need for More

They ended the quarter with $40 million in cash. Solid, sure. But the reality is they may have to tap their debt facility or raise more money. Any time a company even hints at raising cash, the market gets skittish — especially after a run-up.

Expectations Were Sky-High

Speaking of run-ups, SCPH has been on a tear since Q1. That means the bar was set higher this time around, so even good news can get punished if it’s not amazing news.

My Take as a Shareholder

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