scPharmaceuticals sets share price in $50 million offering

BURLINGTON, Mass. – scPharmaceuticals Inc. (NASDAQ:SCPH), a biopharmaceutical company, announced today the pricing of its public offering of 12 million shares at $4.00 each, aiming to raise approximately $50 million. The firm also offers pre-funded warrants to certain investors as an alternative to common stock.

The company, which specializes in developing and commercializing products that enhance the delivery of infused therapies, has granted underwriters the option to purchase up to an additional 1.875 million shares. This option is available for 30 days and is at the public offering price, minus underwriting discounts and commissions.

The offering, which is expected to close tomorrow, subject to standard closing conditions, includes pre-funded warrants to buy up to 500,000 shares at $3.999 per share, with an exercise price of $0.001 per share.

Leerink Partners and TD Cowen are serving as joint book-running managers for the offering, with additional financial services provided by Craig-Hallum, Maxim, and H.C. Wainwright & Co.

This move follows the company’s filing of a shelf registration statement with the U.S. Securities and Exchange Commission (SEC) on March 13, 2024, which became effective on March 22, 2024. The preliminary prospectus supplement relating to the offering was filed with the SEC today.

The final prospectus supplement will be filed with the SEC and made available on its website. Interested parties can obtain copies of the preliminary prospectus supplement and the accompanying base prospectus from Leerink Partners LLC and TD Securities (USA) LLC.

This press release contains forward-looking statements regarding the offering's anticipated completion and net proceeds. However, these are subject to market and other conditions, and there can be no assurance that these expectations will be met.

Investors are cautioned to consider the risks and uncertainties detailed in the "Risk Factors" section of the company's Annual Report for the year ended December 31, 2023, and subsequent SEC filings.

The information in this article is based on a press release statement from scPharmaceuticals Inc.

In other recent news, scPharmaceuticals Inc. has seen significant developments. The U.S. Food and Drug Administration (FDA) approved the expansion of the indication for FUROSCIX to include treatment for all classes of chronic heart failure patients.

This approval extends the use of FUROSCIX, previously limited to New York Heart Association (NYHA) Class II and III patients, to those with NYHA Class IV chronic heart failure. The approval is based on demonstrated efficacy and safety in treating congestion due to fluid overload, which could potentially prevent hospital admissions or readmissions related to heart failure.

In financial updates, scPharmaceuticals reported a net revenue of $6.1 million and a net loss of $14.1 million for Q1 2024. The company also announced its plan for a public offering of its common stock, managed by Leerink Partners and TD Cowen, subject to market conditions and other factors. Despite a cyber-attack resulting in a 10% loss of doses, the company has maintained momentum with strategic initiatives, including the expansion of its FUROSCIX product indications.

The FDA has also accepted scPharmaceuticals' sNDA for the FUROSCIX drug expansion, aiming to treat edema due to fluid overload in patients with chronic kidney disease. This potential expansion targets a $3 billion market. The company is planning for long-term growth initiatives, including potential expansion of FUROSCIX indication for Class 4 heart failure and CKD patients. These are among the recent developments for the company.

InvestingPro Insights

scPharmaceuticals Inc. (NASDAQ:SCPH), in its recent public offering, has showcased a strategic move to bolster its financial position and fuel its product development and commercialization efforts. With a current market capitalization of $163.94 million, the company is navigating through a crucial phase of growth. An impressive revenue growth of 754.68% over the last twelve months as of Q1 2024 indicates a significant market interest in scPharmaceuticals' offerings.

InvestingPro Tips reveal that analysts are optimistic about the company's sales growth in the current year, which aligns with the aggressive revenue expansion observed. However, the company is also quickly burning through cash and analysts do not expect profitability this year. This is further reflected in the company's negative operating income margin of -338.58% for the same period. Moreover, scPharmaceuticals holds more cash than debt, which is a positive sign for investors considering the company's liquidity amidst its growth trajectory.

On the valuation front, scPharmaceuticals is trading at a high Price/Book multiple of 6.35, which suggests that investors are willing to pay a premium for the company's book value. This could be attributed to the potential investors see in the company's innovative approach to drug delivery systems. It's noteworthy that the company does not pay a dividend, which is common for growth-focused biopharmaceutical firms that reinvest earnings back into research and development.

For those considering an investment in scPharmaceuticals, InvestingPro offers additional insights and tips, with a total of 7 more tips available on the platform that can help investors make a well-informed decision.

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