Sucampo Pharmaceuticals Inc. (NASDAQ: SCMP) reported its third-quarter financial results before the markets opened on Wednesday. The company posted $0.28 in earnings per share (EPS) and $57.9 million in revenue. The consensus estimates from Thomson Reuters called for $0.27 in EPS and revenue of $51.36 million. The same period of last year reportedly had EPS of $0.16 and $33.45 million in revenue.
A recently completed settlement and license agreement with Dr. Reddy’s Laboratories and certain of its affiliates resolves patent litigation in the United States related to Sucampo’s Amitiza (lubiprostone) soft gelatin capsules. The agreement provides for an entry date more than six years from today’s date and profit sharing on product sales by Dr. Reddy’s.
The company’s Phase 3 trial of Amitiza in pediatric functional constipation did not achieve its primary endpoint of overall spontaneous bowel movement (SBM) response. However, the trial did show a trend in favor of lubiprostone for the primary endpoint, and it achieved statistical significance in some secondary endpoints, notably overall SBM frequency, straining and stool consistency. Clinical development of Amitiza with a sprinkle formulation and Phase 3 trials in adults and children six months to less than six years of age using the sprinkle formulation will continue as planned.
In terms of guidance for the full year, the company expects EPS to be in the range of $1.20 to $1.25 and revenues of between $220 million and $225 million. The consensus estimates are $1.03 in EPS and $205.68 million in revenue.
Peter Greenleaf, board chair and chief executive of Sucampo, commented:
We are very excited that we have achieved another significant quarter of strong financial results, driven by solid global performance of our flagship brand, AMITIZA. Additionally, we continued to make significant progress on many important areas of our business, including the resolution of our patent litigation with Dr. Reddy’s Laboratories that affords us greater certainty on the significant future value of the AMITIZA franchise. Looking forward to the remainder of 2016 and throughout 2017, we will be focused on the execution of our base business, next steps in our phase three program for AMITIZA in pediatric functional constipation and development of a sprinkle formulation, and completion of strategic transactions to further boost growth and diversify our company.
Shares of Sucampo were trading up 29% at $14.65 on Wednesday, with a consensus analyst price target of $18.50 and a 52-week trading range of $9.59 to $18.80.