scPharmaceuticals Announces Non-Dilutive Financings Totaling Up to $125 Million with Perceptive Advisors
scPharmaceuticals Inc. (SCPH) has secured non-dilutive financings totaling up to $125 million with Perceptive Advisors. The deal includes a $75 million senior secured loan and a $50 million revenue interest financing. Key benefits include:
1. Refinancing of existing debt with improved terms
2. Lower interest rate and extended interest-only period
3. Reduced minimum cash requirement to $5 million
4. Additional funding for FUROSCIX commercialization
The revenue interest financing involves tiered single-digit royalties on FUROSCIX global net sales, capped at 1.6x to 2.0x the purchase price. This partnership aims to support FUROSCIX's potential in reducing unnecessary hospital utilization for heart failure patients while generating cost savings for healthcare payers.
scPharmaceuticals Inc. (SCPH) ha ottenuto finanziamenti non diluitivi per un totale di 125 milioni di dollari da Perceptive Advisors. L'accordo include un prestito senior garantito di 75 milioni di dollari e un finanziamento per interessi sui ricavi di 50 milioni di dollari. I principali vantaggi includono:
1. Rifinanziamento del debito esistente con termini migliorati
2. Tasso d'interesse più basso e periodo di solo interessi prolungato
3. Riduzione del requisito minimo di liquidità a 5 milioni di dollari
4. Ulteriore finanziamento per la commercializzazione di FUROSCIX
Il finanziamento basato sugli interessi sui ricavi prevede royalties a percentuale singola a scaglioni sulle vendite nette globali di FUROSCIX, limitate a un valore compreso tra 1,6 e 2,0 volte il prezzo d'acquisto. Questa partnership mira a supportare il potenziale di FUROSCIX nella riduzione dell'uso non necessario degli ospedali per i pazienti con insufficienza cardiaca, generando al contempo risparmi sui costi per i pagatori del sistema sanitario.
scPharmaceuticals Inc. (SCPH) ha asegurado financiamientos no dilutivos por un total de 125 millones de dólares con Perceptive Advisors. El acuerdo incluye un préstamo senior garantizado de 75 millones de dólares y un financiamiento de interés por ingresos de 50 millones de dólares. Los beneficios clave incluyen:
1. Refinanciamiento de la deuda existente con términos mejorados
2. Tasa de interés más baja y período de solo intereses extendido
3. Reducción del requisito mínimo de efectivo a 5 millones de dólares
4. Financiamiento adicional para la comercialización de FUROSCIX
El financiamiento de interés por ingresos implica regalías escalonadas de un solo dígito sobre las ventas netas globales de FUROSCIX, con un límite de entre 1.6x y 2.0x el precio de compra. Esta asociación tiene como objetivo apoyar el potencial de FUROSCIX para reducir la utilización innecesaria de hospitales para pacientes con insuficiencia cardíaca, al tiempo que genera ahorros de costos para los pagadores de atención médica.
scPharmaceuticals Inc. (SCPH)는 Perceptive Advisors와 함께 최대 1억 2,500만 달러의 비희석 자금을 확보했습니다. 이 거래에는 7,500만 달러의 고정 담보 대출과 5천만 달러의 수익 이자 재원이 포함됩니다. 주요 이점은 다음과 같습니다:
1. 기존 부채의 재융자 및 조건 개선
2. 낮은 이자율 및 연기된 이자 전환 기간
3. 최소 현금 요건을 500만 달러로 축소
4. FUROSCIX 상용화에 대한 추가 자금 지원
수익 이자 재원은 FUROSCIX의 전 세계 순매출에 대한 단일 디지털 로열티를 포함하며, 구매 가격의 1.6배에서 2.0배 사이로 제한됩니다. 이 파트너십은 FUROSCIX가 심부전 환자에 대한 불필요한 병원 이용을 줄이는데 기여하고, 의료 지불자에게 비용 절감 효과를 제공하기 위해 설계되었습니다.
scPharmaceuticals Inc. (SCPH) a sécurisé des financements non dilutifs totalisant jusqu'à 125 millions de dollars avec Perceptive Advisors. L'accord comprend un prêt senior garanti de 75 millions de dollars et un financement d'intérêts sur les revenus de 50 millions de dollars. Les principaux avantages incluent :
1. Refinancement de la dette existante avec des conditions améliorées
2. Taux d'intérêt réduit et période d'intérêt prolongée
3. Réduction du besoin en liquidités minimales à 5 millions de dollars
4. Financement supplémentaire pour la commercialisation de FUROSCIX
Le financement des intérêts sur les revenus implique des redevances à un chiffre à plusieurs niveaux sur les ventes nettes mondiales de FUROSCIX, plafonnées à 1,6 à 2,0 fois le prix d'achat. Ce partenariat vise à soutenir le potentiel de FUROSCIX à réduire l'utilisation inutile des hôpitaux pour les patients souffrant d'insuffisance cardiaque tout en générant des économies de coûts pour les payeurs de soins de santé.
scPharmaceuticals Inc. (SCPH) hat nicht verwässernde Finanzierungen in Höhe von insgesamt 125 Millionen Dollar von Perceptive Advisors gesichert. Das Geschäft umfasst ein gesichertes Darlehen in Höhe von 75 Millionen Dollar sowie eine Finanzierung von Einnahmeinteressen in Höhe von 50 Millionen Dollar. Zu den wichtigsten Vorteilen gehören:
1. Refinanzierung bestehender Schulden zu verbesserten Konditionen
2. Niedrigere Zinssätze und verlängerter Zeitraum für nur Zinsen
3. Reduzierung der Mindestbarkaution auf 5 Millionen Dollar
4. Zusätzliche Finanzierung für die Kommerzialisierung von FUROSCIX
Die Finanzierung durch Einnahmeinteressen sieht gestaffelte Einzelzinsroyalties auf die globalen Nettoumsätze von FUROSCIX vor, begrenzt auf das 1,6- bis 2,0-fache des Kaufpreises. Diese Partnerschaft zielt darauf ab, das Potenzial von FUROSCIX zur Reduzierung unnötiger Krankenhausaufenthalte von Patienten mit Herzinsuffizienz zu unterstützen und gleichzeitig Kosteneinsparungen für Krankenversicherer zu generieren.
- Secured up to $125 million in non-dilutive financing
- Refinanced existing debt with improved terms, including lower interest rate
- Extended interest-only period by four years
- Reduced minimum cash requirement from previous level to $5 million
- Additional funding to support FUROSCIX commercialization
- Revenue interest financing capped at 1.6x to 2.0x purchase price, with no 'make whole' or 'catch up' payments
- New debt agreement includes royalty payments on FUROSCIX global net sales
Insights
This non-dilutive financing deal is a significant positive for scPharmaceuticals. The
- Debt refinancing with improved terms: lower interest rate, extended interest-only period and reduced cash requirement
- Additional
$50 million available through revenue-based financing - Flexible royalty structure capped at 1.6-2.0x purchase price
- Early buyout option at 1.4x for first two years
This deal strengthens scPharmaceuticals' financial position, extending their runway for FUROSCIX commercialization. The partnership with Perceptive Advisors, a respected life sciences investor, adds credibility. However, investors should monitor FUROSCIX sales closely, as future royalty payments will impact profitability.
FUROSCIX represents an innovative approach to heart failure management, potentially reducing hospital admissions and healthcare costs. Key points for investors:
- Targets congestion in NYHA Class IV chronic heart failure patients
- Subcutaneous delivery allows for at-home treatment
- Potential to reduce hospital utilization and improve quality of life
However, adoption may face challenges:
- Changing established treatment paradigms can be slow
- Careful patient selection and monitoring required
- Potential side effects include electrolyte imbalances and dehydration
Long-term success will depend on real-world efficacy data and payer acceptance. Investors should watch for post-market studies and reimbursement decisions.
The heart failure treatment market presents a substantial opportunity for FUROSCIX:
6.2% of US adults have heart failure, with10% classified as NYHA Class IV- Heart failure hospitalizations cost the US healthcare system
$11 billion annually - Growing aging population increases the target market
FUROSCIX's potential to reduce hospitalizations aligns with value-based care trends. However, challenges include:
- Competing with established treatments and emerging therapies
- Educating healthcare providers on a new treatment paradigm
- Navigating complex reimbursement landscapes
Investors should monitor FUROSCIX's market penetration, reimbursement progress and any expansion into additional indications or markets.
scPharmaceuticals received
The term loan refinances existing debt principal; lowers coupon, extends interest-only period for four additional years, and lowers minimum cash requirement to
BURLINGTON, Mass., Aug. 12, 2024 (GLOBE NEWSWIRE) -- scPharmaceuticals Inc. (Nasdaq: SCPH) (the “Company”), a pharmaceutical company focused on developing and commercializing products that have the potential to optimize the delivery of infused therapies, advance patient care, and reduce healthcare costs, today announced non-dilutive financings totaling up to
Proceeds from the transactions will be used to repay existing debt, as well as to fund activities related to the ongoing commercialization of FUROSCIX, the Company’s proprietary formulation of furosemide indicated for the treatment of congestion due to fluid overload in adult patients, including patients with New York Heart Association (NYHA) Class IV chronic heart failure.
“We have a unique opportunity with FUROSCIX to positively impact heart failure patient outcomes while reducing preventable healthcare costs, and these non-dilutive financings provide us with ample resources to continue to pursue those goals,” stated John Tucker, Chief Executive Officer of scPharmaceuticals. “We are excited to partner with Perceptive and look forward to working with them as we continue to grow as a company.”
“We are pleased to partner with scPharmaceuticals as it advances its mission to make FUROSCIX a key component of a new heart failure treatment paradigm,” stated Sam Chawla, Portfolio Manager of Perceptive Advisors' credit funds. “By leveraging intervention opportunities both pre-hospital admission and post-discharge, FUROSCIX has the potential to reduce unnecessary hospital utilization, thereby improving patient quality of life while driving significant cost savings for health care payers. It is this kind of innovation that we strive to support, and we look forward to a long and mutually beneficial partnership.”
scPharma has entered into a
The Company also entered into a
TD Cowen served as exclusive financial advisor and Latham & Watkins served as legal advisor to scPharma. Morrison Foerster served as legal advisor to Perceptive.
FUROSCIX® (furosemide injection) 80 mg/10mL for subcutaneous use
FUROSCIX® is indicated for the treatment of congestion due to fluid overload in adult patients with chronic heart failure.
IMPORTANT SAFETY INFORMATION
FUROSCIX is contraindicated in patients with anuria, patients with a history of hypersensitivity to furosemide, any component of the FUROSCIX formulation or medical adhesives and in patients with hepatic cirrhosis.
Furosemide may cause fluid, electrolyte, and metabolic abnormalities, particularly in patients receiving higher doses, patients with inadequate oral electrolyte intake, and in elderly patients. Serum electrolytes, CO2, BUN, creatinine, glucose, and uric acid should be monitored frequently during furosemide therapy.
Excessive diuresis may cause dehydration and blood volume reduction with circulatory collapse and possibly vascular thrombosis and embolism, particularly in elderly patients.
Furosemide can cause dehydration and azotemia. If increasing azotemia and oliguria occur during treatment of severe progressive renal disease, discontinue furosemide.
Cases of tinnitus and reversible or irreversible hearing impairment and deafness have been reported with furosemide. Reports usually indicate that furosemide ototoxicity is associated with rapid injection, severe renal impairment, the use of higher than recommended doses, hypoproteinemia or concomitant therapy with aminoglycoside antibiotics, ethacrynic acid, or other ototoxic drugs.
In patients with severe symptoms of urinary retention (because of bladder emptying disorders, prostatic hyperplasia, urethral narrowing), the administration of furosemide can cause acute urinary retention related to increased production and retention of urine. These patients require careful monitoring, especially during the initial stages of treatment.
Contact with water or other fluids and certain patient movements during treatment may cause the On-body Infusor to prematurely terminate infusion. Ensure patients can detect and respond to alarms. The most common adverse reactions with FUROSCIX administration in clinical trials were site and skin reactions including erythema, bruising, edema, and injection site pain.
For more details, please read the full Prescribing Information at FUROSCIX.com/prescribing-information.pdf and Instructions for Use at FUROSCIX.com/instructions-for-use.pdf.
About scPharmaceuticals
scPharmaceuticals is a pharmaceutical company focused on developing and commercializing products that are designed to reduce healthcare costs and improve health outcomes. The Company develops, internally and through strategic partnerships, innovative products and solutions that aim to expand and advance the outpatient care of select acute conditions. The Company’s lead programs focus on the subcutaneous, self-administration of IV-strength treatments in heart failure and infectious disease. scPharmaceuticals is headquartered in Burlington, MA. For more information, please visit www.scPharmaceuticals.com.
About Perceptive Advisors
Founded in 1999, Perceptive Advisors focuses on supporting progress in the life sciences industry by identifying opportunities and directing financial resources toward the most promising technologies in modern healthcare. Today, the firm manages approximately
Forward-Looking Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, but not limited to, statements regarding the debt and royalty financings providing non-dilutive capital and funding to repay existing debt, as well as to fund activities related to the ongoing commercialization of FUROSCIX, statements regarding the future availability of funds under the debt facility and the ability of the Company to reach certain net sales milestones under the royalty financing, the potential benefits of Perceptive’ s funding and partnership to the Company, and the potential for FUROSCIX to positively impact heart failure patient outcomes while reducing preventable healthcare costs. Any forward-looking statements in this press release are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, we have a history of significant operating losses and expect to incur significant and increasing losses for the foreseeable future; we may never achieve or maintain profitability; we may need additional funding and may be unable to raise capital when needed, which would force us to delay, reduce or eliminate our product development programs or commercialization efforts; the terms of our credit facility place restrictions on our operating and financial flexibility, and we may not have cash available to us in an amount sufficient to enable us to make interest or principal payments on our indebtedness when due; clinical and preclinical development involves a lengthy and expensive process with an uncertain outcome, and any difficulties or delays in the commencement or completion, or the termination or the potential for the results from any clinical trials to support submission of sNDAs or comparable regulatory applications; if we are unable to expand our sales and marketing capabilities or continue to enter into agreements with third parties to market and sell FUROSCIX, we may be unable to generate any revenue; we have a limited operating history and no history of commercializing pharmaceutical products, which may make it difficult to evaluate the prospects for our future success. For a discussion of these and other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the sections entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 on file with the Securities and Exchange Commission, available at the Securities and Exchange Commission’s website at www.sec.gov, as well as discussions of potential risks, uncertainties and other important factors in the Company’s subsequent filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and the Company undertakes no duty to update this information unless required by law.
Katherine Miranda
scPharmaceuticals Inc., 781-301-6869
kmiranda@scpharma.com
Investors:
PJ Kelleher
LifeSci Advisors, 617-430-7579
FAQ
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