Back to top

Analyst Blog

Sucampo (SCMP - Free Report) reported earnings of 28 cents per share in the third quarter of 2016, beating the Zacks Consensus Estimate of 26 cents by 7.7%. Reported earnings were also up by 68% from the year-ago figure of 17 cents.

 

Total revenue came in at $57.9 million, up 73% from the year-ago quarter, and surpassed the Zacks Consensus Estimate of $52 million, driven by 2015 R-Tech Ueno acquisition and increased royalty related revenues from partner Takeda.

The Quarter in Detail

Product sales were $31.6 million, up 186% year over year, and product royalty revenue was $20.8 million, up 7% year over year. Excluding the additional revenue from the R-Tech Ueno acquisition, base revenue grew by 33%.

Sales of Amitiza Sucampo’s marketed product, as reported by Takeda Pharmaceutical for royalty calculation purposes, in the U.S. were $108.8 million, up 7%. Total prescriptions for the product in the U.S. were 374,194, down 1.4%. Takeda holds the global marketing rights for Amitiza outside Japan and China and pays royalties to Sucampo.

Adjusted EBITDA were $28.8 million up 97% year over year.

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

Under the conditions of the settlement and license agreement, the company is granting Dr. Reddy's a non-exclusive license for marketing a generic version of Amitiza in the United States after six years.

Dr. Reddy’s will pay to Sucampo a share of the net profits generated from the generic version of Amitiza, sold during the term of the agreement.

2016 Guidance Raised

Sucampo raised its earnings guidance for the full-year 2016.

For 2016, Sucampo now expects its adjusted earnings to be within $1.20 to $1.25 per share. Previously it was in the range of 97 cents to $1.07 per share. The Zacks Consensus Estimate for 2016 is $1.03 per share.

The company now expects total revenue to be in the range of $220.0–$225.0 million which was previously expected within $195–$205 million. The Zacks Consensus Estimate for 2016 is $208.3 million.

Adjusted EBITDA is now expected to be between $110.0 million and $115.0 million which was previously expected in the range of $100.0 million to $105.0 million.            .

Sucampo also provided preliminary earnings guidance for 2017. It expects total revenue to be in the range of $220.0 million to $230.0 million, adjusted net income between $75.0 million and $85.0 million, and adjusted EBITDA between $145.0 million and $155.0 million.

SUCAMPO PHARMAC Price, Consensus and EPS Surprise

 

SUCAMPO PHARMAC Price, Consensus and EPS Surprise | SUCAMPO PHARMAC Quote

Sucampo is a Zacks Rank #3 (Hold) stock. A couple of better-ranked stocks in the healthcare sector include Heska Corporation (HSKA - Free Report) and Anika Therapeutics Inc. (ANIK - Free Report) . Both the stocks sport 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 $1.13 to $1.35 for 2016 and from $1.38 to $1.53 for 2017 over the last 60 days. The company posted positive surprises in three of four trailing quarters with an average beat of 301.64%.

Anika’s earnings estimates increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 for 2017 over the last 60 days. The company posted positive surprises in all of the four trailing quarters with an average beat of 33.14%.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>