Exploring scPharmaceuticals Inc. (SCPH) Investor Profile: Who’s Buying and Why?

You're looking at scPharmaceuticals Inc. (SCPH) and asking the right question: who is buying this stock, and what do they see that you might be missing? Honestly, the investor profile tells a story of a recent, massive shift, moving this from a speculative biotech play to an acquisition target now fully absorbed by MannKind as of October 2025.

Before the deal, institutional investors were already heavily committed, owning a substantial chunk-around 80.33% of the outstanding shares as of November 2025. Names like Rubric Capital Management LP and BlackRock, Inc. are major holders. Why the conviction? They were betting on the growth of FUROSCIX, the company's lead product, which drove Q2 2025 net revenue to $16 million, a 99% jump year-over-year.

But here's the quick math: with a trailing twelve-month (TTM) revenue of roughly $49.96 million and a TTM net loss of -$91.72 million, the company was still a cash-burner, ending Q2 2025 with only $40.8 million in cash. The acquisition by MannKind is the ultimate catalyst, translating a high-risk growth story into a clear integration opportunity. Are you still thinking about SCPH as a standalone company, or are you valuing the combined entity now?

Who Invests in scPharmaceuticals Inc. (SCPH) and Why?

You're looking at scPharmaceuticals Inc. (SCPH) to understand its investor base, but the most important development you need to know is that the company was acquired by MannKind Corporation, with the deal closing in October 2025. This event is the ultimate payoff for the investors we're about to discuss, shifting the focus from long-term growth speculation to a concrete, near-term capital return.

The investor profile leading up to the acquisition was dominated by institutional money, a common setup for a specialty pharmaceutical company with a single, commercial-stage product like FUROSCIX. These investors were betting on the commercial success of the lead drug, but the acquisition provided the final exit.

Key Investor Types: The Institutional Majority

The ownership structure of scPharmaceuticals Inc. was overwhelmingly institutional, meaning large firms-not individual retail traders-held the majority of the stock. This is typical for a biotech stock where deep due diligence on the drug pipeline and regulatory hurdles is necessary. As of the most recent filings, institutional investors owned an estimated 80.33% of the shares outstanding, representing a total of over 36.2 million shares held by 197 different institutions.

This institutional base breaks down into three main groups, each with a distinct role:

• Specialty Hedge Funds: Focused on biotech and event-driven strategies.
• Passive Index Funds: Required to hold the stock due to its inclusion in major indices.
• Active Mutual Funds: Making a fundamental bet on the company's core product.

The sheer concentration of ownership meant that a few large institutional decisions could move the stock price significantly. This is a small-cap reality.

Here's a quick look at the top institutional holders from the 2025 filings, which includes both passive giants and specialist funds:

Investment Motivations: Growth, Efficiency, and the Exit

The core motivation for investors was the growth trajectory of the company's lead product, FUROSCIX, which is an on-body infusor for heart failure and chronic kidney disease patients. The numbers in 2025 were compelling: in Q2 2025, the company reported $16.0 million in net revenue, marking a 99% increase year-over-year. This revenue beat analyst estimates and showed strong adoption, with approximately 20,200 FUROSCIX doses filled, a 117% increase over the prior year.

The second major motivation was a clear path to profitability via manufacturing efficiency. The company was on track to submit a supplemental New Drug Application (SNDA) for an auto-injector in Q3 2025, which management projected could lead to a 75% reduction in the Cost of Goods Sold (COGS). That's a huge margin improvement and a clear catalyst. The third, and ultimately most decisive, motivation was the acquisition itself. The cash offer of $5.35 per share plus a Contingent Value Right (CVR) provided a definitive, premium exit, validating the growth story for shareholders who bought in at lower prices.

Investment Strategies: The Merger Arbitrage Play

The strategies employed by investors shifted dramatically once the MannKind Corporation acquisition was announced in August 2025. Before the announcement, the strategy was classic biotech growth investing-buying a stock with a high burn rate (net loss was $18.0 million in Q2 2025) but explosive revenue growth.

Once the deal was public, the dominant strategy for many hedge funds became merger arbitrage. This means buying the stock below the cash offer price of $5.35 per share and holding it until the deal closes, capturing the small, low-risk difference (the 'spread'). You can learn more about the underlying financial health that made this company an attractive target in our in-depth analysis: Breaking Down scPharmaceuticals Inc. (SCPH) Financial Health: Key Insights for Investors. For a company like scPharmaceuticals Inc., the presence of activist investors like Rubric Capital Management LP, who filed Schedule 13G forms, also suggests a strategic value-add approach, pushing for corporate actions like a sale to maximize shareholder return. It's a textbook case of a growth story culminating in a strategic acquisition. They got their exit.

Institutional Ownership and Major Shareholders of scPharmaceuticals Inc. (SCPH)

You're looking at scPharmaceuticals Inc. (SCPH) ownership, but the most important detail is that the public market story is over: MannKind Corporation completed its acquisition of SCPH on October 7, 2025. The institutional investors who held the stock were essentially paid out, converting their equity into a cash-and-contingent-value-right (CVR) package.

Before the deal closed, institutional investors owned a commanding 89.52% of the company's stock, holding a total of over 36.2 million shares. This high concentration is typical for a small-cap biotech, where specialized funds-not retail investors-drive the valuation. The key takeaway is that the acquisition price of $5.35 per share in cash, plus a CVR of up to $1.00 per share, was the final decision point for these large holders.

Top Institutional Investors and Their Pre-Acquisition Stakes

The institutional profile of scPharmaceuticals Inc. (SCPH) was dominated by healthcare-focused funds and major index players, which is a common mix in the biopharma space. These firms held the cards in the lead-up to the MannKind deal. For instance, BlackRock, Inc. and Vanguard Group Inc. represent the passive, index-tracking money, while others like Rubric Capital Management LP were active, fundamental-driven investors.

Here's a snapshot of the largest institutional investors based on their latest filings before the acquisition was finalized in Q4 2025:

This shows a clear concentration: Rubric Capital Management LP was the single largest holder, controlling nearly 10% of the company. That's a significant position in any M&A scenario. If you want to dive deeper into the company's background and product, FUROSCIX, you can check out scPharmaceuticals Inc. (SCPH): History, Ownership, Mission, How It Works & Makes Money.

The Dynamic of Ownership Change Leading to the Buyout

Analyzing the change in institutional stakes right before the acquisition announcement in August 2025 and its close in October 2025 tells a story of diverging opinions and strategic positioning. Some institutions were accumulating shares, betting on a positive catalyst or a buyout, while others were reducing exposure, perhaps seeing the stock as fully valued or too risky for their mandate.

The quarter leading up to the deal saw some notable shifts:

• Rubric Capital Management LP increased its stake by +10.9%, a clear vote of confidence in the company's trajectory.
• Vanguard Group Inc. increased its holdings by +18.6%, likely due to index rebalancing as the stock gained momentum.
• King Luther Capital Management Corp decreased its position sharply by -39.9%, signaling a partial exit before the final terms were set.

This mixed activity is defintely a sign of a market trying to price in the future. The accumulation by some funds suggests they saw the intrinsic value of the company's main product, FUROSCIX, which generated $16.04 million in net revenue in Q2 2025, a 99% increase year-over-year. They were rewarded with a deal that offered a 36% premium over the stock's 90-day volume-weighted average price.

Impact of Institutional Investors on the Acquisition Strategy

In the case of scPharmaceuticals Inc. (SCPH), the institutional ownership was the primary driver of the acquisition's mechanics. When a company is acquired, the large shareholders play an outsized role in approving the deal, especially when their holdings are as high as 89.52%. Their collective decision effectively sealed the fate of the company.

Here's the quick math: MannKind Corporation acquired the company for up to $360 million. The high institutional ownership meant MannKind had to structure a deal-the $5.35 cash plus the $1.00 CVR-that was attractive enough to gain the necessary shareholder approval quickly. The CVR, a non-tradable contractual right to future payments based on milestones, is a classic M&A tool used to bridge the valuation gap between the buyer and the large, sophisticated institutional sellers. It allows the funds to get a solid cash price now while retaining a potential upside if the product performs post-acquisition.

The sheer volume of institutional shares meant the tender offer had to succeed, and it did: MannKind acquired approximately 73.47% of the outstanding shares through the tender, satisfying all conditions to close the merger. That's the power of institutional money; it doesn't just influence the stock price, it dictates the terms of the final exit. Finance: track the CVR milestones for MannKind's next earnings report.

Key Investors and Their Impact on scPharmaceuticals Inc. (SCPH)

The core takeaway for scPharmaceuticals Inc. (SCPH) investors is that the company's investor profile shifted dramatically in late 2025, moving from a publicly-traded, institutionally-backed biotech to a wholly-owned subsidiary of MannKind Corporation following a definitive acquisition. This transition was the ultimate expression of investor influence, driven by a declining stock price and the underlying value of its key asset, FUROSCIX.

Before the October 7, 2025, acquisition completion, scPharmaceuticals Inc. was heavily owned by institutional money, which is typical for a commercial-stage biopharma company. Institutional investors-like hedge funds, mutual funds, and asset managers-held roughly 80.33% of the company's stock as of November 2025, representing a total of over 36.2 million shares. That's a huge concentration of professional capital. You were defintely playing in the big leagues here.

Notable Institutional Investors and Their Stakes

The shareholder register was dominated by specialized healthcare funds and major index trackers. The presence of these funds showed a belief in the commercial ramp-up of FUROSCIX, the company's subcutaneous furosemide treatment. Their buying power and selling pressure were the primary drivers of stock movement.

Here is a snapshot of the top institutional holders and their positions based on 2025 fiscal year filings:

Investor Influence: The Acquisition Catalyst

The most significant investor impact came not from a single activist campaign, but from the broader market pressure on the stock price, which ultimately led to the sale. The declining stock price, despite strong product revenue growth-Q2 2025 net FUROSCIX revenue hit $16.0 million, a 99% increase year-over-year-put management in a difficult spot. Here's the quick math: a low stock price makes a company an easier takeover target, even if the underlying asset value is high.

The board of scPharmaceuticals Inc. felt enough pressure to shop the company, contacting 25 potential acquirors, which is a textbook process for maximizing shareholder value in a sale. The final deal with MannKind Corporation was a direct result of this influence. Breaking Down scPharmaceuticals Inc. (SCPH) Financial Health: Key Insights for Investors shows why the revenue growth was not enough to satisfy the market.

Recent Moves: The MannKind Deal and Contingent Value Rights

The key recent move is the acquisition itself. MannKind completed the purchase of scPharmaceuticals Inc. on October 7, 2025, for a total potential value of up to $6.35 per share. This transaction dictated the final outcome for every shareholder.

• Cash Payment: Shareholders received $5.35 per share in cash.
• Contingent Value Right (CVR): Investors also received a CVR worth up to an additional $1.00 per share.

This CVR is essentially a financial instrument that pays out if certain future milestones are met, specifically tied to the approval of the FUROSCIX autoinjector. Management estimated an 85% probability of the autoinjector being approved, which gives you a clear path to valuing the CVR. What this estimate hides, however, is the time and regulatory risk involved; the payout is not guaranteed. For investors like Rubric Capital Management LP, who held over 5 million shares, this deal provided a substantial cash exit while retaining an upside bet on a key product development.

The action for you, as a former shareholder, is clear: track the CVR milestones. That's where the final piece of your return will come from.

Market Impact and Investor Sentiment

You're looking at scPharmaceuticals Inc. (SCPH) to understand who was buying and why, but the most critical piece of information is that the company is no longer publicly traded. The ultimate investor action was an exit: MannKind Corporation acquired scPharmaceuticals Inc. in a merger that closed on October 7, 2025. This acquisition, which valued the company at a fixed cash price plus a contingent payment, is the final word on investor sentiment.

Pre-merger, the sentiment among major institutional shareholders was shifting from cautiously optimistic to a clear 'reduce' posture. Institutional investors held a significant stake, around 80.33% of the company's shares, but the consensus analyst rating had recently been downgraded to 'Reduce' from 'Buy.' That's a serious red flag, suggesting that while the big money was locked in, the forward-looking outlook was deteriorating.

Here's the quick math on the final value: Shareholders received $5.35 in cash per share, plus one non-tradable Contingent Value Right (CVR) worth up to $1.00 per share, contingent on achieving specific regulatory and net sales milestones. This final price was a compromise, but it was defintely below the average analyst price target of $7.78 that was on the books for 2026.

Recent Market Reactions and the Final Price

The stock market's reaction to scPharmaceuticals Inc.'s performance in 2025 was a major factor pushing the company toward the acquisition. The second quarter of 2025 showed a mixed picture that spooked the market: net revenue nearly doubled to $16.0 million year-over-year, driven by strong adoption of its product FUROSCIX. But, the Earnings Per Share (EPS) missed consensus estimates, reporting a loss of ($0.34), which was a miss of $0.04 against expectations.

• Net revenue nearly doubled to $16.0 million in Q2 2025.
• EPS miss of ($0.34) in Q2 2025 signaled profitability issues.
• Stock fell 11.98% post-Q2 earnings, showing investor concern.

The market reacted swiftly and negatively to the EPS miss and the declining cash reserves, which stood at $40.8 million at the end of Q2 2025. This pressure from a low stock price made the company vulnerable. The eventual merger consideration of $5.35 cash, while a premium to the stock price at the time of the initial offer, was lower than what some analysts saw as the company's intrinsic value, which is why the deal faced shareholder investigations.

Analyst Perspectives on Key Investors and the Exit

The institutional investors who held the largest stakes-like Rubric Capital Management LP, which held over 9.572% of the company, and Vanguard Group Inc. at over 4.085%-were essentially voting for the merger. Their perspective shifted from long-term growth driven by the autoinjector's potential to a near-term, guaranteed cash-plus-CVR exit. The CVR, or Contingent Value Right, is a classic tool in biotech mergers, allowing the buyer (MannKind) to pay less upfront while giving the seller's investors a piece of the upside if the product hits future milestones, like the autoinjector's approval.

Analysts noted the deal was priced at only 3.1x next year's projected revenue, which was significantly lower than precedent transactions in the 4.6x to 6.1x range. This suggests the market was valuing the certainty of the cash and the potential of the CVR over the risk of continued independent operation and cash burn. The acquisition accelerated revenue growth for MannKind, allowing them to capitalize on scPharmaceuticals Inc.'s commercial momentum without the long-term cash flow risk that was pressuring the stock. You can dive deeper into the company's journey and ownership structure in the full analysis: scPharmaceuticals Inc. (SCPH): History, Ownership, Mission, How It Works & Makes Money.

The final investor profile, therefore, is one of a large institutional base that ultimately accepted a guaranteed, albeit investigated, exit price. They traded the high-risk, high-reward biotech path for a defined cash-out. That's the reality of the small-cap pharmaceutical space.