Roth Capital Affirms Buy On Sucampo Following Agreement Extension With Takeda


In a research report released Wednesday, Roth Capital analyst Ed Arce Affirmed a Buy rating on Sucampo (NASDAQ:SCMP) with a $9 price target, as the company extended its agreement with Takeda, whereby the partners will split gross profits of branded Amitiza in the U.S. and Canada beginning on January 1, 2021.

Arce observed, “Sucampo extended its agreement with Takeda, whereby the partners will split gross profits of branded Amitiza in the U.S. and Canada beginning on January 1, 2021. We believe this amended agreement, together with the recent Par settlement, likely affords Sucampo higher Amitiza revenues after 2020 than if there were no generics and the current royalty rates continued. We view this surprising turn of events as a strong positive for the Amitiza franchise and SCMP.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ed Arce has a total average return of 17.0% and a 48.6% success rate. Arce has a -0.2% average return when recommending SCMP, and is ranked #236 out of 3332 analysts.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts