Why did SCPH's operating expenses surge in Q4 2024?

The surge in operating expenses for scPharmaceuticals Inc. (SCPH) in Q4 2024 can be attributed to several key factors: 1. **Expansion of Sales Force and Territories**: SCPH reported a significant increase in net revenue, which was largely due to the expansion of its sales force and territories. This strategic move likely led to higher operating expenses as the company invested more in sales and marketing activities to support the growth in revenue. 2. **Increased Gross-to-Net (GTN) Discount**: The GTN discount for FUROSCIX exceeded anticipated ranges, impacting revenue negatively. This could indicate that SCPH had to offer higher discounts to healthcare providers, which would increase the operating expenses related to pricing and market access. 3. **High Patient Copays and Coverage Gap Rebates**: SCPH faced challenges with coverage gap rebates, which affected both GTN and patient fill rates. High patient copays during the coverage gap led to a lower fill rate for prescriptions, affecting sales. These issues are likely reflected in the increased operating expenses related to patient assistance programs and reimbursement-related activities. 4. **One-Time Charges and Strategic Initiatives**: SCPH incurred one-time charges, primarily due to new financial agreements, which contributed to the higher operating expenses. Additionally, the company is likely investing in strategic initiatives, such as the expansion of Integrated Delivery Networks (IDNs), which could have increased the operating expenses in the quarter. In conclusion, the surge in operating expenses for SCPH in Q4 2024 can be attributed to a combination of factors including the expansion of sales force and territories, increased GTN discount, high patient copays and coverage gap rebates, and one-time charges. These expenses are likely a result of SCPH's strategic initiatives to drive revenue growth and improve market access for its products.