Credit: Shutterstock photoSummary:
Sucampo reported earnings per share of $0.14 in the third quarter of 2014 easily beating the Zacks Consensus Estimate of $0.04 and above the year-ago figure of $0.09. Revenues came in at $31.5 million, up 49% from the year-ago quarter but above the Zacks Consensus Estimate of $27 million. Amitiza is Sucampo's flagship product which is approved in the U.S. for the treatment of chronic idiopathic constipation, opioid-induced constipation and irritable bowel syndrome. The company is working on the label expansion of the drug. We are impressed by recent patent litigation settlements and amendment of agreement with partner Takeda, which should boost growth prospects. Hence, we initiate coverage on Sucampo with an Outperform recommendation.
Overview:
Sucampo Pharmaceuticals (SCMP) is a global biopharmaceutical company which primarily focuses on the research, discovery, development and commercialization of proprietary drugs to treat gastrointestinal, ophthalmic, neurologic and oncology-based inflammatory disorders.
Sucampo currently has two marketed products Amitiza and Rescula.
Amitiza is approved in the U.S. for chronic idiopathic constipation (CIC) in adults, irritable bowel syndrome with constipation (IBS-C) among adult women and opioid-induced constipation (OIC) in patients with chronic non-cancer pain. Amitiza is marketed by Takeda Pharmaceuticals and Abbott (in Japan).
Rescula is approved in the U.S. for primary open-angle glaucoma and ocular hypertension. Under an agreement with R-Tech, Sucampo holds exclusive rights to commercialize and develop Rescula worldwide for its approved indications and new potential indications. However, Sucampo ceased marketing Rescula in the third quarter of 2014.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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