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Sucampo (SCMP) Beats Q4 Earnings, 2017 View Reaffirmed

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Sucampo Pharmaceuticals, Inc. reported adjusted earnings of 68 cents per share in the fourth quarter of 2016, beating the Zacks Consensus Estimate of 49 cents by 38.8%. Reported earnings were also up by 58.1% from the year-ago figure of 48 cents.

Total revenue came in at $73 million, up 32% from the year-ago quarter, and surpassed the Zacks Consensus Estimate of $64 million, driven by the receipt of a milestone payment from  Mylan N.V.   of $10.0 million in the reported quarter as well as higher Amitiza sales in both North America and Japan. Sucampo has a license, commercialization and supply agreement with Mylan for marketing Amitiza in Japan.

Sucampo’s share price has decreased 11.1% year to date, while the Zacks classified Medical Drugs industry gained 5.8%.

The Quarter in Detail

Product sales were $42.3 million, up 42.8% year over year, and product royalty revenue was $26.3 million, up 14.5% year over year.

Sales of Amitiza,Sucampo's marketed product, as reported by Takeda Pharmaceutical for royalty calculation purposes, in the U.S. were $114.2 million, up 11%. Takeda holds the global marketing rights for Amitiza outside Japan and China and pays royalties to Sucampo. Total prescriptions for the product in the U.S. were  down 2%.

Adjusted EBITDA were $42.8 million up 54% year over year.

In Mar 2017, Sucampo received a Paragraph IV certification notice letter for an Abbreviated New Drug Application (ANDA) submitted to the FDA by Amneal Pharmaceuticals requesting approval to market a generic version of the 8 mcg and 24 mcg Amitiza soft gelatin capsule products.

Meanwhile, the company has entered into a settlement and license agreement with generic drug maker, Dr. Reddy's Laboratories Ltd. (RDY - Free Report) which is also looking to gain FDA approval for its generic version of Amitiza.
2016 Results

For 2016, earnings came in at $1.51 per share compared with earnings of 96 cents per share in 2015. Results also beat the Zacks Consensus Estimate of $1.22.

Revenues in 2016 came in at $230.1 million, up 50% year over year and surpassed the Zacks Consensus Estimate of $221.98 million.

Developments

In Dec 2016, the company initiated the clinical development of a sprinkle formulation of Amitiza. Top line results are expected in the first quarter of 2017.

The company also plans to initiate a randomized, bioequivalence study comparing sprinkle and capsule formulations of Amitiza in adult chronic idiopathic constipation (CIC) patients. A supplemental new drug application (sNDA) for approval of the sprinkle formulation for adults is expected to be submitted in the second half of 2017.

During the quarter the company also announced that Andrew Smith, the Chief Financial Officer, will be leaving Sucampo to move back to Europe.  H Peter Pfreundschuh, will become Sucampo’s new Chief Financial Officer, effective March 2017.

2017 Guidance Reaffirmed

Sucampo reaffirmed its guidance for the full year 2017. The company expects total revenue in the range of $220.0 million to $230.0 million. The Zacks Consensus Estimate for 2017 is $227.28 million.

The company expects adjusted net income in the range of  $80.0 million to $90.0 million, and adjusted earnings in the range  of $1.35 to $1.50
The company forecasts adjusted EBITDA of $145.0 million to $155.0 million. Adjusted EBITDA guidance excludes stock option related costs of $6.0 million.

Sucampo Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

 

Sucampo Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | Sucampo Pharmaceuticals, Inc. Quote

Zacks Rank & Key Picks

Sucampo carries a Zacks Rank #3 (Hold) stock. Better ranked stock in the health care sector includes Heska Corporation which carries a Zacks Rank#1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Heska’s earnings estimates increased from $1.53 to $1.65 for 2017 and from $1.90 to $2.01 for 2018 over the last 30 days. The company posted a positive earnings surprise in all of the four trailing quarters with an average beat of 291.54%.

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