Sucampo Pharmaceuticals, Inc. (SCMP) announced that it has amended its existing collaboration and license agreement with Takeda Pharmaceutical Company Ltd.
The amendment took place last week and covered commercialization rights for Amitiza in the U.S. and Canada.
The amendment includes various modifications including the extension of the current term, minimum commercial investment during the current term and various governance changes, thereby allowing Takeda better flexibility of commercializing Amitiza.
The extended term will begin on Jan 1, 2021 during which Takeda will split the gross profits from the sales of Amitiza with Sucampo for any strength and form of dosage for existing indications in the U.S. and Canada.
Takeda will not reimburse the product details made by Sucampo sales representatives to health care professionals as well as other ancillary costs of the sales force, effective from Apr 1, 2015.
We note that Sucampo presently has two marketed products – Amitiza and Rescula. Amitiza, Sucampo’s flagship product, generated net sales of $152 million in the first half of 2014, up 16% year over year.
Amitiza is approved in the U.S. for the treatment of chronic idiopathic constipation (CIC) in adults and opioid-induced constipation (OIC) in adults with chronic, non-cancer pain. The drug is also approved for irritable bowel syndrome with constipation (IBS-C) in women aged 18 years and older in the U.S.
Sucmapo believes that this amendment of the agreement with Takeda will further expand Amitiza’s business.
Sucampo carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Pacira Pharmaceuticals (PCRX), Shire (SHPG) and Lannett Inc. (LCI). All three carry a Zacks Rank #1 (Strong Buy).
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