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Sucampo Pharmaceuticals, Inc.

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Sucampo beat estimates for both earnings and sales in the third quarter and raised its 2017 sales and profit outlook. The company is focused on expanding Amitiza’s label and penetrating new markets. A sNDA for label expansion in pediatric functional constipation is under review. Also, Sucampo’s collaborations with firms like Takeda and Mylan for Amitiza’s commercialization is a big positive. Moreover, the Vtesse acquisition added a pivotal program in Niemann-Pick Disease type C1 to its pipeline. However, dependence of Sucampo on Amitiza for growth is concerning with few companies trying to market and sell generic version of Amitiza. A decline in Amitiza's sales will adversely impact the top line. Moreover, Sucampo will not proceed with Amitzia’s sprinkle formulation for adults as it did not meet bioequivalence with capsule formulation. Shares of the company have underperformed the industry.