Cantor Raises Sucampo Price Target To $14, As Takeda Continues To Invest in Amitiza


In a research note issued to investors today, Cantor analyst Irina Rivkind assigned a Buy rating on Sucampo (NASDAQ:SCMP) and raised her price target to $14 (from $13), as the company entered into a global license with Takeda, which expanded Takeda’s rights beyond the U.S. and Canada to develop and commercialize Amitiza, in global markets excluding Japan and China.

Koffler noted, “We like Takeda’s commitment to Amitiza growth and development. We reiterate our BUY rating and raise PT from $13 to $14 based on increased international growth assumptions and additional upfront payment.” The analyst continued, “Management indicated that the $14M upfront payment will be taken as revenue in 4Q:14, and we model a favorable $0.19 impact to EPS. We modestly raised our EU/International revenue assumptions starting in 2017 to account for Amitiza launches in additional emerging markets (in line with management feedback on timing of international regulatory approvals). We have not added the $35M in additional sales milestones since we believe they may be linked to aggressive revenue targets. Additionally, we have not changed our R&D estimates since we assume that Sucampo will continue to spend on its own pipeline build. We think that new management appointments reflect a stronger biotech focus moving forward.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Irina Rivkind Koffler has a total average return of 13.6% and a 59.7% success rate. Rivkind Koffler has a 20.3% average return when recommending SCMP, and is ranked #184 out of 3343 analysts.

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