TD Cowen has expressed continued confidence in scPharmaceuticals (NASDAQ: NASDAQ:SCPH), sustaining a Buy rating and a $25.00 price target for the company's stock.
The firm's endorsement comes amid scPharmaceuticals' progress, particularly with its Furoscix product, which is anticipated to see increased adoption following a label expansion for Class IV heart failure (HF) in the second half of 2025.
The analyst from TD Cowen highlighted the significant strides scPharmaceuticals is making with Furoscix. The label expansion for treating Class IV HF is expected to boost the product's adoption rate in the latter half of 2025.
Furthermore, the development of an autoinjector for Furoscix, which has demonstrated intravenous (IV) bioequivalence, is projected to streamline administration and is on track for regulatory submission by the end of the year.
The chronic kidney disease (CKD) market presents another promising avenue for Furoscix, which, according to TD Cowen, remains undervalued. The firm foresees the approval of Furoscix for CKD treatment in the first quarter of 2025, which could further enhance the drug's market potential.
scPharmaceuticals set its share price in a $50 million public offering of 12 million shares at $4.00 each, managed by Leerink Partners and TD Cowen. In addition, scPharmaceuticals secured up to $125 million in financing through debt and royalty agreements with Perceptive Advisors to support the commercialization of its product, FUROSCIX.
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. Furthermore, scPharmaceuticals reported positive results from a study of SCP-111, its investigational autoinjector designed to deliver furosemide subcutaneously.
InvestingPro Insights
Amidst the positive outlook for scPharmaceuticals presented by TD Cowen, it's insightful to consider some key financial metrics and analyst expectations provided by InvestingPro. The company, with a market capitalization of $168.12 million, has recently shown a remarkable revenue growth of 754.68% over the last twelve months as of Q1 2024. This surge is reflected in the quarterly revenue growth of 195.78% in Q1 2024, indicating a strong upward trajectory in sales. Despite these impressive growth figures, scPharmaceuticals is not currently profitable, with a negative P/E ratio of -3.17, and analysts do not anticipate profitability this year.
On a brighter note, an InvestingPro Tip highlights that scPharmaceuticals holds more cash than debt on its balance sheet, providing a cushion for operational flexibility. However, another InvestingPro Tip points out that the company is quickly burning through cash, which investors should monitor closely. Moreover, with liquid assets exceeding short-term obligations, scPharmaceuticals appears to be in a good position to meet its immediate financial commitments.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips on scPharmaceuticals' financial health and future prospects. The current fair value estimates according to InvestingPro stand at $5.42, which is significantly lower than the analyst target from TD Cowen, suggesting a more conservative valuation of the company's stock. Investors may find these insights particularly valuable when considering the potential risks and rewards associated with investing in scPharmaceuticals.
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