Sucampo Profit More Than Doubles, Shares Fall

From the Associated Press

Sucampo Pharmaceuticals said its second-quarter profit more than doubled due to a large milestone payment from Takeda Pharmaceuticals of Japan, but the drug developer's shares dropped in Thursday trading.

The Bethesda company's profit climbed to $29.9 million (71 cents per share) from $13.8 million (39 cents) in the comparable period a year earlier. Revenue rose 38 percent, to $67.7 million, mostly from a $50 million regulatory milestone payment from Takeda after the Food and Drug Administration approved the drug Amitiza for a new use, treating irritable bowel syndrome with constipation in adult women.

Sucampo's per-share profit increased by a smaller amount than its total net income because the company's share count increased to about 42 million from 35.5 million a year ago.

Shares were down 88 cents, or almost 7 percent, to $11.80 around 12:45 p.m. They earlier fell as low as $11.16.

The $50 milestone million payment lifted Sucampo's research and development revenue to $55.4 million from $38.1 million. The year-ago results included a $30 million license payment from Takeda.

R&D costs rose to $12.9 million from $8.1 million as the company sought regulatory approval for Amitiza as a treatment for constipation caused by the use of opiate painkillers. It also trying to get its drug candidate cobiprostone approved as a preventive treatment for hypertension in patients with cirrhosis of the liver.

In a client note, Cowen and Co. analyst Ian Sanderson said Sucampo's expenses were greater than he expected, but he said that revenue was strong and that the company is receiving a higher royalty rate on Amitiza sales than he had anticipated.

By Terri Rupar  |  August 14, 2008; 12:55 PM ET  | Category:  Earnings
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