Maxim starts scPharmaceuticals at buy; PT $10

Maxim Group initiated coverage of scPharmaceuticals (NASDQ:SCPH) with a “buy” rating and price target of $10. The stock closed at $4.89 on Aug. 2.

scPharmaceuticals is a late-stage pre-commercial company developing Furoscix (furosemide) to treat congestive heart failure in adult patients who have reduced responsiveness to oral diuretics and do not require hospitalization.

Furoscix is a drug-device combination that can treat patients potentially cheaper at home instead of in a hospital environment, writes analyst Naz Rahman.

Congestive heart failure is the most common cause of hospitalization in the U.S. Heart failure also is primarily Medicare-based, representing almost one-third of all Medicare spending, Mr. Rahman noted. “There is a significant need for cheaper non-in-patient therapies.”

Mr. Rahman said Furoscix has a PDUFA date of Oct. 8, 2022, with a potential launch in November 2022.

In addition, he said scPharmaceuticals is well-capitalized with about $65-million in cash, and “considering the large market opportunity and a near-term catalyst on the horizon, we believe scPharmaceuticals is undervalued at its current market cap of about $134-million.