B.Riley FBR Assigns a Buy Rating on Sucampo Pharmaceuticals

By Jason Carr

B.Riley FBR analyst David Buck assigned a Buy rating to Sucampo Pharmaceuticals (NASDAQ: SCMP) today and set a price target of $14. The company’s shares closed yesterday at $10.30, close to its 52-week low of $9.30.

Buck said:

“We are initiating coverage of Sucampo Pharmaceuticals, Inc. (SCMP) with a Buy rating and a $14.00 per share price target. We see base cash flow from Amitiza, which treats various subtypes of constipation, including opioid-induced constipation, providing attractive growth for 2017 and beyond. The U.S. prescription constipation market (branded and generic) where Amitiza competes represents an ~50M Rx market worth $4B. Sucampo is generating ~$255M annually from its Amitiza business, with growth from the key U.S. market and Japanese market volume growth, offset by negative pricing, expected through 2020. Sucampo also has two key pipeline opportunities for orphan diseases: VTS-270 for Niemann-Pick Disease Type C1 and CPP-1X/ sulindac for FAP (familial adenomatous polyposis/severe overgrowth of polyps in the colon), with data readouts expected in mid 2018 and at year-end 2018, respectively.”

According to TipRanks.com, Buck is a 4-star analyst with an average return of 12.1% and a 59.4% success rate. Buck covers the Healthcare sector, focusing on stocks such as Supernus Pharmaceuticals, Amag Pharmaceuticals, and Jazz Pharmaceuticals.

Currently, the analyst consensus on Sucampo Pharmaceuticals is Moderate Buy and the average price target is $18.30, representing a 77.7% upside.

In a report issued on November 2, Maxim Group also assigned a Buy rating to the stock with a $23 price target.

The company has a one-year high of $17.55 and a one-year low of $9.30. Currently, Sucampo Pharmaceuticals has an average volume of 531.1K.

Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock.

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Sucampo Pharmaceuticals, Inc. is a biopharmaceutical company, which engages in the development, identification, acquisition, and delivery of innovative pharmaceutical products. It operates through the following geographic segments: Asia, the Americas, and Europe.