💬 Thoughts on SCPH

It was good to see SCPH up ~25% on their quarterly update in May. Company still only ~$200M market cap, so plenty of room to run up this year.

4 out of 34 hedge funds hold it – actually a positive at this size, and that includes Orbimed and Perceptive. Still, not a strong enough signal to be included in any of our BPIQ portfolios.

There are some key warning signs: revenue still only ~$12M last quarter, SGA >2x gross profit, and Manny has historically sold for tax losses most of the last 3–5 years.

That said, Medicare changes are providing a strong tailwind for their chronic heart failure/CKD drug/device combo, with many patients hitting $0 deductibles. The market opportunity is large.

Manny plans to keep adding to SCPH in one of his personal accounts before the Q2 update (August), even if it's not in BPIQ portfolios.

If you're looking for a high-risk/high-reward smid-cap to research, check out SCPH and their last earnings call. #SCPH

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This article is not investment, tax, or legal advice. Please do your own diligence and seek advice from professional advisors representing your interests.

First published 6/5/25 EJV & AV