Free 7-day Trial
All Articles and Columns »

Sucampo Pharmaceuticals Inc. Reports Operating Results (10-Q)

May 10, 2010 | About:
10qk

10qk

18 followers
Sucampo Pharmaceuticals Inc. (SCMP) filed Quarterly Report for the period ended 2010-03-31.

Sucampo Pharmaceuticals Inc. has a market cap of $160.27 million; its shares were traded at around $3.83 with and P/S ratio of 2.38. SCMP is in the portfolios of Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of SCMP over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SCMP.


Highlight of Business Operations:

Research and development revenue was $4.1 million for the three months ended March 31, 2010 compared to $5.5 million for the three months ended March 31, 2009, a decrease of $1.5 million or 26.6%. The decrease was primarily due to reduced revenue recognized in respect to the OBD trials for Amitiza in the U. S. funded by Takeda, partially offset by $2.8 million in revenue recognized under the agreement with Abbott. The revenue recognized under the agreement with Takeda decreased to $1.3 million for the three months ended March 31, 2010 from $5.2 million for the three months ended March 31, 2009, generally reflecting a completion of the phase 3 efficacy trials. The revenue recognized under the agreement with Abbott increased to $2.8 million for the three months ended March 31, 2010 from $0.4 million for the three months ended March 31, 2009, reflecting the progress of the Japanese development program for lubiprostone. We are recognizing the revenue from the payments from Abbott using a percentage-of-completion model over the estimated term of the CIC development program.

General and administrative expenses were $5.8 million for the three months ended March 31, 2010, compared to $3.5 million for the three months ended March 31, 2009, an increase of $2.3 million or 66.7%. The increase in legal, consulting and other professional expenses relates primarily to costs incurred in connection with the on-going legal matters.

Interest income was $211,000 for the three months ended March 31, 2010, compared to $312,000 for the three months ended March 31, 2009, a decrease of $101,000, or 32.4%. The decrease was primarily due to lower prevailing interest rates earned by our investments and a shift in the composition of our portfolio from ARS, which bear higher interest rates, to other types of investments. The decrease in other income was primarily attributable to foreign exchange gains and losses and fair value changes in auction rate securities and the related settlement rights.

Our segment in Asia recorded a loss before taxes of $235,000 for the three months ended March 31, 2010 compared to a loss before taxes of $2.0 million during the three months ended March 31, 2009. These results primarily reflect the $2.8 million in revenue recognized during the three months ended March 31, 2010 from the payments received from Abbott in 2009.

Our total cash, cash equivalents, short and long-term investments decreased by $1.4 million to $116.9 million at March 31, 2010 from $118.3 million at December 31, 2009 mainly due to the use of cash in our operating activities.

Net cash provided by operating activities was $7.3 million for the three months ended March 31, 2009. This reflected a net loss of $1.8 million, which included a non-cash unrealized loss on settlement rights of $2.4 million, offset in part by a $2.7 million unrealized gain on trading securities, an increase in deferred revenue of $7.2 million, and an increase in accounts payable of $1.4 million and a $1.4 million increase in prepaid and income taxes receivable and payable, net. The increase in deferred revenue primarily related to a $10.0 million upfront payment from Abbott upon execution of the license and commercialization agreement by Sucampo Japan in February 2009.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.3/5 (6 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide