Sucampo (SCMP) 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 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 and Anika Therapeutics Inc. ANIK. 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%.
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