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Scpharmaceuticals (SCPH)... Is Summer Stock Dip a Buying Opportunity?

Updated: Aug 16, 2023


Overview:

• Under the radar companies

• Huge upside

• Difficult FDA approval behind them

⇒ Typical for drug device combo

⇒ 2 CRLs

• But still high risk/high reward stock



Details:

Single drug company

• Furoscix

⇒ SubQ furosemide via on body infusor

⇒ Diuretic for fluid build up in chronic heart failure

• Early commercial - Launched Feb ‘23

• Market opp $7B



Sales Pitch:

Large cost savings for Medicare & insurers

✔️Patients stay home instead of IV @ hospital

✔️Hospitals save $

⇒ Heart failure overstays & readmits cost them $



Financials look attractive:

• MC = $300M; EV = $243M

⇒ Lots of upside

⇒ Cash = 117M

⇒ Quart burn = $11M



Patent protection seems OK:

• thru 2034

• Methods of treating

• Formulations

• But, cannot patent active ingredient



Initial market response promising?

⇒ $2.2M Q1 (5 weeks only)

>50% increase in scripts in May vs. April

• Seems positioned well for future M&A if...

⇒ Revenue gets to $10s M/q

⇒ Based on rest of above facts



Summary:

SCPH is a high risk high reward opportunity

Proceed with caution

* Pricing info from Inside Rx



Article History:

Originally Published 7/17/23 (RB)


This is not investment, legal or tax advice. Do your own diligence and seek the advice of professionals.


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