scPharmaceuticals Inc. (NASDAQ:SCPH) Q4 2023 Earnings Call Transcript

Stacy Ku: We had a few. First, Steve, understand you’re currently focused on establishing the infrastructure and driving uptake for prescribers, but just curious your views on expanding patient activation for DTC, especially as reimbursement continues to progress. And we have a few more questions, so we’ll just kind of lay them out first. As you also brought in out the prescriber base, are you helping these clinicians get a good sense of which patients will have reasonable co-pays just to help ease the prescribing for the clinicians as they think about appropriate patients and as we think about long-term improvement to fulfillment? And then just to follow-up, your comments around the change healthcare. Clearly, cyber-attack is pretty well understood issue at this point, but curious if you could provide any other additional details.

Is this just a delay in adjudication for co-pays from Q1 to Q2 as you implement kind of the temporary workarounds? Do you anticipate any prescriptions will be lost? And then last question, if we may, when do you think you might break out that IDN contribution? And what are your thoughts about types of disclosures? Thanks so much. I can repeat the questions, if needed.

John Tucker: We probably getting that wasn’t right fast, Stacy. Let me do the first one again. I think I’m going to take them the end. I’ll talk about change first. As I said, what’s happened since February 21st that, when the system went down is really the prescriptions coming in, being able to adjudicate them co-pays and ship them? We have, I think I said it in my prepared remarks, our demand, the number of prescriptions and units being written is way higher than at this time quarter-to-date last quarter, dramatically different. Obviously, our units filled is higher, but it’s lagging the prescriptions because of the delays we’re seeing. Your question is, is it just the delay? Do you lose some of them? I think that’s the big question is, yes, they’re delayed, but do you get them back?

We have a workaround with our specialty pharmacy partners. We are hoping change comes back up fully online here. They’ve said next week. The question is, can we ship everything that we should have shipped? And we’re just not sure of that right now. We don’t think unless something weird happens, it’s a long-term issue and we remain optimistic about making consensus for the year. But this is a disruption for us right now. Again, it started February 21st, it’s ongoing now. We have a workaround. We have been shipping units just not as many as we should be because of the slowness of the system. I’m going to talk a little bit, so that’s the first question. We talked a little bit about the reporting of the IDN. It will depend on the IDN, and in our contract with them of what metrics we can report.

We could break the sales out. I think we’ve said that, for Q4, we think it was in the 10% to 15% range for the IDN purchases that will vary. Again, we had a large purchase at the very end of the year from Kaiser. We don’t have visibility into what — Kaiser doesn’t let you see what doctor wrote. They don’t want you to detail on the doctors, which is crazy. But some of the IDNs that Steve mentioned, hospital-based ones will have more metrics to be able to share. But unfortunately with Kaiser, I think the metrics are going to be somewhat scarce. And then, Steve, do you want to — do you have the other questions?

Steve Parsons: I think you asked about helping doctors identify patients, who are going to have — what the co-pay is going to be for those patients so they can have success. Yes, we can do that. We’re pretty confident like 70% of our patients are able to access FUROSCIX co-pay of $100 or less. Some of them much less, like, the average co-pay for the patients with a with a with a $100 left is in the $20 range. You can imagine anything $0 co-pay, $10 and $50. A lot of the doctors are now, they’re submitting prescriptions in advance of meeting the product, anticipating that they’re going to need FUROSCIX for a specific patient who’s going towards them, it’s just a matter of time and they get a cost and coverage feedback. They get an answer and they get an approval on the product, they know the non co-pay is good.

And then when the patient does get sick and does need it, that’s when they call it down and it’s ready to go very, very quickly. They’ll tell the patients who have the really good co-pays, no hesitation at all. And some people who have higher co-pay, they may not talk about the product to them until there’s foundational charitable funding support for those. I don’t know if that answers the question, but they are able to get pre-clearance on a lot of these patients, and know who has the really good co-pay.

Stacy Ku: That’s really helpful. And then the first question we asked was really curious your thoughts around activating patients, by DTC. I know you’re focused on the prescribers right now, but as you progress your reimbursement, as you get the auto injector, what are your thoughts there long-term?

Steve Parsons: Yes. We have a plan. We have a strategy to reach directly out to patients and their caregivers. We did an awful lot of market research to be ready so that we know how they like to be communicated to? How to reach them? Where to reach them? We’ve begun in office, direct to patient with brochures and the brochures and the doctors giving them out things and we’re building a website just for patients. We have advocacy groups, Mended Hearts and HeartBrothers that are connecting us with patients through their networks of people, who have opted in signing up. The patient is a big focus for us this year more than it was in year one.

John Tucker: We spent the first 12 months as our plan was educating cardiologists before we educated patients. This year, there’ll be a lot more targeted outreach to patients and to caregivers. We are going to be doing a giant DTC campaign on survivor or something, probably not, you won’t see that. But I think you’ll see some targeted things to patients including potentially media as well.