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Sucampo (SCMP) Beats on Q3 Earnings & Revenues, Ups '17 View

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Sucampo Pharmaceuticals, Inc. reported adjusted earnings of 27 cents per share in the third quarter of 2017, beating the Zacks Consensus Estimate of 25 cents. However, reported earnings were down 10% from the year-ago figure of 30 cents.

Total revenue came in at $61.3 million, up 6% from the year-ago quarter, and surpassed the Zacks Consensus Estimate of $57.44 million, driven by higher Amitiza sales in the United States and Japan. Sucampo has a license, commercialization and supply agreement with Mylan N.V. for marketing Amitiza in Japan.

Sucampo’s share price has decreased 29.2% year to date, while the industry lost 0.9%.

The Quarter in Detail

Product sales were $35.8 million, up 14% year over year. Product royalty revenues were $23 million, up 11% year over year.

Sales of Amitiza as reported by Takeda Pharmaceutical for royalty calculation purposes, in the United States were $115.2 million, up 6% due to strong marketing and selling, as well as growth in branded market. Takeda holds the global marketing rights for Amitiza outside Japan and China and pays royalties to Sucampo. As reported by Mylan, Amitizia sales increased 18% to $20.5 million in Japan. Unit volume increased 35%.

The company’s operational expense (R&D and S&GA) increased 4% from the year-ago period to $22.6 million due to inclusion of research & development expense related to Vtesse.

Developments

In July 2017, the company filed a supplemental new drug application (sNDA) with the FDA for label expansion of Amitizia to include pediatric patients (10-17 year of age) suffering from functional constipation. The sNDA was granted priority review with a decision expected on Jan 28, 2018.

Moreover, during the quarter, the FDA granted Fast-Track status to CPP-1X/sulindac, which is being developed for adults with familial adenomatous polyposis.

2017 Guidance Raised

Sucampo raised its guidance for full year 2017. The company now expects total revenue in the range of $250 million to $255 million (previously $220 million to $230 million). The Zacks Consensus Estimate for 2017 is $228.5 million.

The company increased its adjusted net income guidance to the range of $63 million to $68 million (previously $56 million to $66 million) and adjusted earnings in the range of $1.10 to $1.15 (previously $1.00 to $1.10).

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. A couple of better-ranked stocks in the pharma sector includes Agenus Inc. (AGEN - Free Report) and Exelixis, Inc. (EXEL - Free Report) . Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Agenus’ loss estimates remained stable at $1.17 for 2017 and narrowed from $1.40 to $1.36 for 2018 over the last 30 days. The company delivered a positive earnings surprise in three of the four trailing quarters with an average beat of 4.27%.

Exelixis’ earnings per share estimates remained stable at 26 cents for 2017 and increased from 63 cents to 64 cents for 2018 over the last 30 days. The company delivered positive earnings surprises in all the four trailing quarters with an average beat of 543.59%. The company’s shares are up 62.5% so far this year.

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