MannKind to acquire scPharmaceuticals stock in $303 million deal, H.C. Wainwright downgrades

Published 29/08/2025, 12:42
MannKind to acquire scPharmaceuticals stock in $303 million deal, H.C. Wainwright downgrades

Investing.com - H.C. Wainwright downgraded scPharmaceuticals (NASDAQ:SCPH) stock rating from Buy to Neutral and reduced its price target to $5.35 from $18.00 following the announcement of the company’s acquisition by MannKind. According to InvestingPro data, SCPH has shown strong momentum with a 13.6% return over the past week and impressive revenue growth of 107.8% in the last twelve months.

MannKind and scPharmaceuticals announced on August 25 a definitive agreement under which MannKind will acquire all outstanding shares of scPharmaceuticals for $5.35 per share in cash, plus one non-tradable contingent value right (CVR) per share that could yield up to $1.00 per CVR in additional cash payments upon achievement of certain milestones.

The transaction values scPharmaceuticals at approximately $303 million in total equity value at closing, representing a 36% premium to the company’s 90-day volume-weighted average price (VWAP).

H.C. Wainwright noted that while scPharmaceuticals was beginning to successfully commercialize its Furoscix product independently, the company’s growth potential was constrained by its balance sheet and the need to achieve profitability.

The acquisition is expected to close in the fourth quarter of 2025, subject to regulatory approvals and satisfaction of other customary conditions.

In other recent news, MannKind Corporation announced its acquisition of scPharmaceuticals Inc. in a deal valued at up to $360 million. The agreement includes an upfront payment of $5.35 per share in cash, with an additional non-tradable contingent value right worth up to $1.00 per share, contingent on achieving certain regulatory and sales milestones. This acquisition marks MannKind’s expansion into cardiorenal medicine. In related developments, scPharmaceuticals reported its Q2 2025 earnings, with net revenue reaching $16 million, a 99% increase year-over-year, surpassing forecasts. However, the earnings per share fell short of expectations at -$0.34, compared to the anticipated -$0.29. Additionally, scPharmaceuticals has amended its supply agreement with West Pharmaceutical Services, extending the arrangement through December 31, 2027. The amendment outlines specific terms for termination and payment responsibilities. These recent developments highlight significant changes and challenges for both MannKind and scPharmaceuticals.

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