Shares of Sucampo Pharmaceuticals Inc. rose around 13 percent Wednesday after the constipation drugmaker released full year 2016 earnings that beat analyst expectations.
Sucampo reported fourth-quarter adjusted earnings per diluted share of 68 cents on revenue of $73 million, beating analyst estimates of 43 cents on revenue of $66 million.
For the full year 2016, Sucampo reported year-over-year total revenue growth of 50 percent to $230 million. Product sales revenue increased to $129 million, representing 94 percent year-over-year growth.
Sucampo’s full-year 2017 guidance forecasts revenue of $220 million to $230 million, adjusted net income of $80 million to $90 million, adjusted earnings per diluted share of $1.35 to $1.50 and adjusted Ebitda of $145 million to $155 million.
Mylan, maker of the EpiPen, owns the rights to Sucampo’s constipation drug in Japan. Revenue in the fourth quarter of 2016 included a one-time milestone of $10 million related to the sale of the drug in Japan, versus a one-time sales milestones of $5 million in 2015.
Takeda, Japan’s largest pharma firm, owns the rights for the same drug, brand name Amitiza, in all global markets except Japan and China.
Rockville, Maryland-based Sucampo has three formulations of its flagship drug Amitiza, generic name lubiprostone, in Phase 2 trials.
The company has a fourth drug to treat an inherited form of colon cancer in Phase 3 trials. There are currently no approved treatments or products in late-stage development to treat this colon disorder, known as FAP.
In the 1980s, Sucampo’s founder, Dr. Ryuji Ueno, discovered the potential of a class of naturally occurring compounds called prostones to fight human diseases.
Sucampo acquired 44 percent of Japan’s R-Tech Ueno Ltd. for $276 million at a 49 percent premium in August 2015. RTU manufactures all of Sucampo’s drugs and is controlled by its founders, Sachiko Kuno and Ryuji Ueno, according to a March 2015 regulatory filing.
The company also announced two updates to its executive management team. Andrew Smith, chief financial officer, will be leaving Sucampo to move back to Europe with his family to pursue professional opportunities there. Peter Pfreundschuh will become Sucampo’s new CFO.
Also, Jones “Woody” Bryan will become Sucampo’s new senior vice president of business development and licensing. Both changes will take effect on March 20.
Shares of Sucampo were trading around $12.65 Wednesday morning, up about 13 percent.
