scPharmaceuticals Inc.

Good afternoon and welcome to SC Pharmaceutical's first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will hold a question and answer session. To ask the question at that time, please press star followed by one one on your touchtone phone. As a reminder, today's conference call is being recorded. I would now like to turn the conference over to Wim Thorpe and Vesta Relations. to a couple forward-looking statements. Will, please go ahead.

Thank you, operator. Before beginning this afternoon's earning call, we would like to highlight the following forward-looking statements. All statements on this conference call, other than historical facts, are forward-looking statements within the meaning of the federal securities laws, including but not limited to statements regarding SC Pharmaceuticals' expected future financial results, management's expectations and plans for the business, the ongoing commercialization and marketing of furosics, the potential label expansion and other regulatory approvals of furosics, decrease of quarterly net cash outflows for the balance of 2025, the rise of furosics dispenses as out-of-pocket expenses decrease, and estimated reduction in COGS. The words anticipate, believe, estimate, expect, intend, guidance, confidence, target, project, and other similar expressions are typically used to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance. It may involve and are subject to certain risks and uncertainties and other important factors that may affect SE Pharmaceutical's business, financial condition, and other operating results. These include but are not limited to the risk factors and other Qualifications contain an SC Pharmaceuticals annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed by the company with the SEC to which your attention is directed. Actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Any forward-looking statements made in this conference call, including responses to your questions, are based on current expectations as of today. and SC Pharmaceuticals expressively disclaim any intent or obligation to update these forward-looking statements except as required by law. With that, I will now turn the call over to John Tucker, Chief Executive Officer of SC Pharmaceuticals. John, please go ahead.

Thank you, William, and thank you to all for attending this afternoon's conference call. Today, we will provide an overview of SC Pharmaceutical's core business and operational highlights for the first quarter of 2025. I will then hand the call to Steve Parsons, Senior Vice President of Commercial, for a Ferosix commercial update. Our Chief Financial Officer, Rachel Noakes, will then provide a financial update for Q1 before we open the line for questions. We truly believe, particularly in this environment, that SC Pharmaceuticals is better positioned than at any point in our history. Ferosix is successfully penetrating a market where we had broad synergies across the healthcare ecosystem by keeping patients out of the hospital and at home, which is far greater from a quality of life and cost perspective for both the patient and the healthcare system. We are also expanding the market into chronic kidney disease and making progress on our autoinjector, which we think will continue to transform the company, improve and expand the patient experience, and add materially to our furosix sales. In the first quarter of 2025, SC Pharmaceuticals generated $11.8 million in net revenue and filled approximately 13,800 furosix doses. As we have discussed, our net revenue generated in the first quarter is impacted by the typical seasonality factors, including deductible and Medicare beneficiaries' out-of-pocket cap resets. Despite these headwinds, we did see an increase in doses filled quarter over quarter. On our Q4 2024 earnings call two months ago, we highlighted the increasing number of Part D beneficiaries who hit their out-of-pocket caps or enrolled in Medicare's co-pay smoothing program, particularly in March of 2025 relative to January and February of 2025. We have seen an acceleration of this trend play out over the course of April and early May as more Medicare patients reach their $2,000 cap or enrolled in the co-pay smoothing program. Historically, we have observed increased prescribing of and improved fill rates for furosics when patients have lower out-of-pocket code pays. This is what we have seen so far in Q2 and see it continuing to accelerate through the balance of the year. The gross to net discount for furosics in the first quarter of 2025 was approximately 23%. Over the balance of 2025, we anticipate a blended GTN of approximately 30%. The increase in GTN is primarily attributable to the implementation of the Medicare Part D redesign, including the mandatory manufacturer rebates under the Inflation Reduction Act. We view the Medicare Part D redesign as a net tailwind in 2025, given the anticipated increase of 406 fill rates and prescribing for Part D enrollees who are through to catastrophic coverage and have a $0 copay on any Part D prescription. In April 2025, we formally launched Ferosix in the chronic kidney disease, and we're pleased to announce that we began filling nephrology prescriptions in April. We believe prescribing by a nephrologist will be a meaningful growth driver for Ferosix for a few core reasons. One, there are an estimated 700,000 additional patients that can be prescribed Ferosix for their fluid management. In the cardiorenal space, nephrologists are the primary diuretic managers for patients with CKD and heart failure. Three, the concentration of targets and their focus on fluid management. Lastly, we're able to provide a positive update on the autoinjector. Our additional shelf-life testing of the high-silicone syringe is progressing as expected, and we are targeting filing the SNDA next quarter. we continue to believe that the autoinjector will be meaningfully important to the long-term furosix growth trajectory with an estimated 70% to 75% reduction in COGS compared to the current on-body infuser and an increase in our penetration rates. Overall, we feel very positive about the long-term growth trajectory of furosix over the course of 2025. Between the CKD indication expansion and the favorable co-pay paradigm with Part D patients progressing into catastrophic coverage, we believe Ferosix is well-positioned to treat heart failure and kidney disease patients when they're experiencing fluid overload. With that, I will pass the line to Steve Parsons, SC Pharmaceuticals Senior Vice President of Commercial. Steve?