H.C. Wainwright analyst Douglas Tsao reiterated a Buy rating on scPharmaceuticals (SCPH – Research Report) today and set a price target of $18.00.
Douglas Tsao has given his Buy rating due to a combination of factors including the recent approval of Furoscix for treating edema in adults with chronic kidney disease (CKD), which significantly broadens its market potential. This label expansion is expected to increase the market opportunity by $3 billion, and the company is gearing up for a full-scale launch by mid-April. The approval aligns with existing furosemide labels, and the company is actively engaging nephrologists, who are likely to be more receptive due to the prevalence of edema in CKD patients.
Additionally, the company has already secured coverage with payers for edema treatment across all indications, setting a strong foundation for sales growth anticipated in the third quarter. Tsao’s valuation of scPharmaceuticals is based on a 7.8x multiple of the 2035 risk-adjusted revenue estimate of $447 million, with a 100% probability of success for Furoscix as an approved asset. Despite potential risks such as regulatory challenges and market adoption, the strategic positioning and market expansion efforts underpin the Buy rating.
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