Sucampo Pharmaceuticals Inc. (SCMP, Financial) filed Quarterly Report for the period ended 2010-06-30.
Sucampo Pharmaceuticals Inc. has a market cap of $155.6 million; its shares were traded at around $3.72 with a P/E ratio of 372 and P/S ratio of 2.3. SCMP is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Product royalty revenue represents royalty revenue earned on net sales of Amitiza in the United States. For the three months ended June 30, 2010 and 2009, we recognized $9.6 million and $8.9 million, respectively, of product royalty revenue, an increase of $698,000 or 7.8%, reflecting mainly a higher price per pill and a slight increase in volume.
General and administrative expenses were $6.6 million for the three months ended June 30, 2010, compared to $2.9 million for the three months ended June 30, 2009, an increase of $3.7 million or 125.9%. The increase in salaries, benefits and related costs was primarily attributable to an increase in the number of key personnel and in the incentive compensation plans for 2010. The increase in legal, consulting and other professional expenses relates primarily to costs incurred in connection with the ongoing legal matters.
Interest income was $177,000 for the three months ended June 30, 2010, compared to $219,000 for the three months ended June 30, 2009, a decrease of $42,000, or 19.2%. The decrease was primarily due to lower prevailing interest rates earned by our investments and a shift in the composition of our portfolio from auction rate securities, or ARS, which bear higher interest rates, to other types of investments. The increase in other income was primarily attributable to foreign exchange gains and losses. Our investment in ARS was redeemed in June 2010.
Research and development revenue was $6.8 million for the six months ended June 30, 2010 compared to $12.9 million for the six months ended June 30, 2009, a decrease of $6.1 million or 47.0%. The decrease was primarily due to reduced revenue recognized in respect to the OBD program for Amitiza in the U.S., partially offset by $4.3 million in revenue recognized under the agreement with Abbott in Japan. The research and development revenue recognized under the agreement with Takeda decreased to $2.6 million for the six months ended June 30, 2010 from $9.0 million for the six months ended June 30, 2009, generally reflecting a completion of the initial two phase 3 efficacy trials in July 2009 funded by Takeda and the change in estimated costs and timeline to complete the OBD program, including an additional phase 3 efficacy trial. Since Takeda funds the first $50.0 million of the development expenses for the OBD program and we and Takeda share equally development costs that exceed that amount, we expect to fund about 50.0% of the upcoming phase 3 trial. The research and development revenue recognized under the agreement with Abbott increased to $4.3 million for the six months ended June 30, 2010 from $3.9 million for the six months ended June 30, 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.
Product royalty revenue represents royalty revenue earned on net sales of Amitiza in the United States. For the six months ended June 30, 2010 and 2009, we recognized $19.4 million and $17.9 million, respectively, of product royalty revenue, an increase of $1.5 million or 8.5%, reflecting mainly a higher price per pill and a slight increase in volume.
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Sucampo Pharmaceuticals Inc. has a market cap of $155.6 million; its shares were traded at around $3.72 with a P/E ratio of 372 and P/S ratio of 2.3. SCMP is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Research and development revenue was $2.8 million for the three months ended June 30, 2010 compared to $7.4 million for the three months ended June 30, 2009, a decrease of $4.6 million or 62.3%. The decrease was primarily due to reduced revenue recognized in respect to the OBD program for Amitiza in the U.S., partially offset by $1.5 million in revenue recognized under the agreement with Abbott in Japan. The research and development revenue recognized under the agreement with Takeda decreased to $1.3 million for the three months ended June 30, 2010 from $3.8 million for the three months ended June 30, 2009, reflecting a completion of the initial two phase 3 efficacy trials in July 2009 funded by Takeda and the change in estimated costs and timeline to complete the OBD program, including an additional phase 3 efficacy trial. Since Takeda funds the first $50.0 million of the development expenses for the OBD program and we and Takeda share equally development costs that exceed that amount, we expect to fund about 50.0% of the upcoming phase 3 trial. The research and development revenue recognized under the agreement with Abbott decreased to $1.5 million for the three months ended June 30, 2010 from $3.6 million for the three months ended June 30, 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.Product royalty revenue represents royalty revenue earned on net sales of Amitiza in the United States. For the three months ended June 30, 2010 and 2009, we recognized $9.6 million and $8.9 million, respectively, of product royalty revenue, an increase of $698,000 or 7.8%, reflecting mainly a higher price per pill and a slight increase in volume.
General and administrative expenses were $6.6 million for the three months ended June 30, 2010, compared to $2.9 million for the three months ended June 30, 2009, an increase of $3.7 million or 125.9%. The increase in salaries, benefits and related costs was primarily attributable to an increase in the number of key personnel and in the incentive compensation plans for 2010. The increase in legal, consulting and other professional expenses relates primarily to costs incurred in connection with the ongoing legal matters.
Interest income was $177,000 for the three months ended June 30, 2010, compared to $219,000 for the three months ended June 30, 2009, a decrease of $42,000, or 19.2%. The decrease was primarily due to lower prevailing interest rates earned by our investments and a shift in the composition of our portfolio from auction rate securities, or ARS, which bear higher interest rates, to other types of investments. The increase in other income was primarily attributable to foreign exchange gains and losses. Our investment in ARS was redeemed in June 2010.
Research and development revenue was $6.8 million for the six months ended June 30, 2010 compared to $12.9 million for the six months ended June 30, 2009, a decrease of $6.1 million or 47.0%. The decrease was primarily due to reduced revenue recognized in respect to the OBD program for Amitiza in the U.S., partially offset by $4.3 million in revenue recognized under the agreement with Abbott in Japan. The research and development revenue recognized under the agreement with Takeda decreased to $2.6 million for the six months ended June 30, 2010 from $9.0 million for the six months ended June 30, 2009, generally reflecting a completion of the initial two phase 3 efficacy trials in July 2009 funded by Takeda and the change in estimated costs and timeline to complete the OBD program, including an additional phase 3 efficacy trial. Since Takeda funds the first $50.0 million of the development expenses for the OBD program and we and Takeda share equally development costs that exceed that amount, we expect to fund about 50.0% of the upcoming phase 3 trial. The research and development revenue recognized under the agreement with Abbott increased to $4.3 million for the six months ended June 30, 2010 from $3.9 million for the six months ended June 30, 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.
Product royalty revenue represents royalty revenue earned on net sales of Amitiza in the United States. For the six months ended June 30, 2010 and 2009, we recognized $19.4 million and $17.9 million, respectively, of product royalty revenue, an increase of $1.5 million or 8.5%, reflecting mainly a higher price per pill and a slight increase in volume.
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