Sucampo has received takeover interest, although there are no hints about who has shown an interest.
Sucampo Pharmaceuticals is reviewing its sale options. The company, which focuses on therapeutics for gastroenterology, has received takeover interest, although there are no hints about who has shown an interest.
At its third-quarter financial report on Nov. 1, the company indicated total revenue for the quarter of $61.3 million compared to $57.9 million in the third quarter 2016. The increase was due to higher sales of Amitiza, which was mostly driven by price and volume increases and a royalty rate increase, as well as higher Amitiza sales in Japan.
Amitiza is a treatment for chronic constipation and irritable bowel syndrome. Sucampo has a licensing deal with Takeda Pharmaceutical for the drug in countries that include the U.S. and Canada.
Sucampo also has two drugs in late-stage clinical trials. One is VTS-270, a 2-hydroxypropyl-beta-cyclodextrin for the treatment of Niemann-Pick Disease Type C1 (NPC-1). Results were published in August of the company’s Phase I/IIa trial. The other is CPP-1X/sulindac, currently in Phase III with Cancer Prevention Pharmaceuticals (CPP) for adults with familial adenomatous polyposis (FAP). The U.S. Food and Drug Administration (FDA) gave the drug Fast Track designation as well, and had previously granted it orphan drug status.
It has also submitted a supplemental New Drug Application (sNDA) to the FDA for Amitiza in children ages 6 to 17 years with pediatric functional constipation. The application received Priority Review status and the PDUFA date is January 28, 2018.
“Our base business remains strong, driven by increasing Amitiza product sales in the United States and Japan,” said Peter Greenleaf, the company’s chairman and chief executive officer, in a statement. “Today we are increasing our 2017 guidance for all key financial metrics based on stronger than expected sales of Amitiza in these two markets. In addition, we continue to make noteworthy progress with our two key pipeline products, VTS-270 and CPP-1X/sulindac, with data published in the preeminent medical journal The Lancet and FDA’s designation of fast-track status, respectively.”
The company has declined to comment on any potential sale. Bloomberg Technology writes, “The company, which hasn’t made a decision, may still decide against a sale and instead pursue growth through acquisitions, said the people, who asked not to be identified because the deliberations are private. The company could be attractive for large drugmakers with an interest in gastroenterology, the people said.”
Investors took note of the interest, causing shares to climb as much as 18.4 percent to $17.70, which is the highest share price the company has seen in two years. It gives the company a market cap of about $825 million.
StockNewsJournal provided an overview of the company today, saying, “Sucampo Pharmaceuticals (SCMP) is an interesting player in the Healthcare space, with a focus on Drug Manufacturers – Other. The stock has been active on the tape, currently trading at $15.60, up from yesterday’s close by 4.35 percent.”
They note that company revenues have been growing by 5.86 percent on a quarterly year over year basis. It currently has $75.04 million of cash, with a levered free cash flow of $28.56 million over the last 12 months. StockNewsJournal writes, “Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.33 on a per share basis this quarter. Perhaps, that suggests something about why 87.21 percent of the outstanding share supply is held by institutional investors.”
