Sucampo Pharmaceuticals, Inc.
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Delaware
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001-33609
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30-0520478
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(State or Other Juris-
diction of Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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4520 East-West Highway, 3rd Floor
Bethesda, Maryland
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20814
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(Address of Principal Executive Offices)
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(Zip Code)
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(Former Name or Former Address, if Changed Since Last Report)
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SUCAMPO PHARMACEUTICALS, INC.
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Date: November 5, 2013
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By: | /s/ Thomas J. Knapp | |
Name: |
Thomas J. Knapp
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Title: |
EVP, Chief Legal Officer and Corporate Secretary
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EXHIBIT 99.1
Sucampo to Begin Co-promotion of AMITIZA for Opioid-Induced Constipation;
Revises RESCULA Commercial Strategy
Company to Host Conference Call Today at 5:00 pm Eastern
Highlights
- Sucampo and partner Takeda Pharmaceuticals U.S.A. Inc (Takeda) agree to increase promotional effort for AMITIZA for non-cancer opioid-induced constipation (OIC)
- RESCULA® (unoprostone isopropyl) promotional costs will be reduced by approximately 75% versus current spend
BETHESDA, Md., Nov. 5, 2013 (GLOBE NEWSWIRE) -- Sucampo Pharmaceuticals, Inc. ("Sucampo") (Nasdaq:SCMP), a global biopharmaceutical company with products available in the United States (U.S.), Japan and Europe, today reported its consolidated financial results for the third quarter and nine months ended September 30, 2013.
Sucampo raised its full year 2013 earnings guidance to $3.0 to $5.0 million net income, excluding special items, versus previous guidance of break-even. During the third quarter of 2013, Sucampo recorded a non-cash write-off of its RESCULA inventory and samples of $4.5 million to reflect excess quantities of dated product. Details of the write-off are discussed in the Cost of Goods Sold and Operating Expenses sections below.
Three Months Ended September 30, |
Nine Months Ended September 30, |
|
(In thousands, except per share data) | 2013 | 2013 |
Total revenues | $ 21,163 | $ 65,104 |
GAAP Diluted EPS | 0.03 | 0.10 |
Non-GAAP Diluted EPS that exclude RESCULA inventory/samples non-cash write-off1 | 0.09 | 0.16 |
GAAP net income2 | 1,291 | 4,266 |
Non-GAAP net income that excludes RESCULA inventory/samples non-cash write-off1, 2 | 4,007 | 6,982 |
1. Sucampo is providing certain 2013 non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors' understanding of Sucampo's performance. This information should be considered in addition to, but not in lieu of, information prepared in accordance with GAAP.
2. Net income is attributable to Sucampo Pharmaceuticals, Inc. on a consolidated basis.
Sucampo also announced that it is exercising the co-promotion option in its commercialization agreement with Takeda and will begin co-promoting AMITIZA for OIC in adults with chronic, non-cancer pain in the first quarter of next year. Sucampo's AMITIZA co-promotion will provide incremental selling resources in addition to Takeda's current selling efforts, and Takeda will reimburse Sucampo based on details to healthcare prescribers. In addition, Sucampo announced changes to its RESCULA commercialization strategy to improve RESCULA profitability by significantly decreasing sales and marketing expenses. Sucampo will continue, but significantly decrease the amount of, in-person sales calls for RESCULA, and will use a contract sales force to focus its detailing on current prescribers. Sucampo will also use a limited mix of inside sales and other promotional tactics, including digital, to reach the current non-prescriber base in an effort to increase prescribers and sales.
"Sucampo revenue grew approximately 40% year-over-year for the first nine months of 2013, driven by continued growth of AMITIZA in recently launched markets, as well as the new OIC indication which yielded us a $10 million milestone from our US partner. Specifically in the US, the 3.5% year-to-date net sales increase for AMITIZA in the U.S. demonstrates that the constipation drug market continues to expand," said Ryuji Ueno, M.D., Ph.D., Ph.D., Chairman, Chief Executive Officer, and Chief Scientific Officer of Sucampo. "More than 200 million prescriptions for opioids are written in the U.S. annually, with a significant portion of them for non-cancer pain. We believe that the OIC indication, for which AMITIZA is the only oral treatment approved, will be a significant driver of future AMITIZA growth. We also made progress this quarter in our globalization efforts for AMITIZA. This year thus far, we have added $10 million in incremental revenue to our topline through Japan sales of AMITIZA, and we are seeing increasing sales from the product in Switzerland. In addition, we progressed our late-stage pipeline assets in the quarter with the initiation of our pivotal liquid formulation study of lubiprostone in adults with chronic idiopathic constipation. Finally, we announced the completion of patient enrollment by our development partner R-Tech Ueno Ltd. in a phase 3 trial of unoprostone isopropyl in retinitis pigmentosa."
Stan Miele, President, Sucampo Pharma Americas, LLC and Senior Vice President of Sales and Marketing for Sucampo, added, "Sucampo is investing incremental selling resources in OIC to accelerate the growth of AMITIZA. AMITIZA continues to grow in the U.S., particularly in new OIC targets, and we believe that Sucampo can fuel additional growth by investing in reaching even more OIC targets. At the same time, while we believe in the value of RESCULA for patients suffering from glaucoma and ocular hypertension, we are making changes to our RESCULA commercialization strategy to better balance investment and revenue."
Third Quarter and To Date Operational Highlights –
2013 Value Drivers:
Sucampo is pursuing the following value drivers in 2013, and, has already achieved eight (denoted with a +) of the thirteen thus far this year:
AMITIZA
U.S.
+ Achieved approval of the OIC indication for AMITIZA in the U.S.
+ Received a $10.0 million milestone payment from Takeda upon the approval and first commercial sale of AMITIZA for OIC in the U.S.
Global
- Engaging in discussions for strategic alliances for AMITIZA for new indications and new territories outside of the U.S., including Europe, China, Latin America and other emerging markets
Japan
+ Strong sales growth of AMITIZA
Europe
+ Completed in the first quarter of 2013 the submission for regulatory approval in the United Kingdom (U.K.) and Switzerland of AMITIZA for the treatment of OIC. We will continue to work with regulatory authorities to achieve approval
+ Began active marketing of AMITIZA for CIC in Switzerland
RESCULA
+ Launched RESCULA in February in the U.S.
Pipeline
Lubiprostone
- Achieve First Patient First Visit in our AMITIZA phase 3 trial for pediatric functional constipation in the second half of 2013
+ Completed our oral mucositis phase 1a trial for cobiprostone in the second quarter of 2013
+ Initiated a phase 1b trial for cobiprostone on October 31
Spinal Stenosis
- Complete our spinal stenosis phase 2a, double-blind, placebo-controlled trial for our intravenous ion channel activator for lumbar spinal stenosis
Financial Results for the Quarter
For the third quarter of 2013, Sucampo reported total revenue of $21.2 million compared to $15.5 million for the same period in 2012, a growth of approximately 36.6%. The key components of revenue for the 2013 third quarter included R&D revenue of $2.0 million, product royalty revenue of $13.6 million, product sales revenue of $5.4 million and co-promotion revenue of nil, which compare to $0.7 million, $13.9 million, nil and $0.7 million, respectively, in the same period of 2012.
For the first nine months of 2013, Sucampo reported total revenue of $65.1 million compared to $46.6 million for the same period in 2012, a growth of approximately 39.6%. The key components of revenue for the 2013 nine months period included R&D revenue of $16.3 million, product royalty revenue of $37.3 million, product sales revenue of $11.0 million, and co-promotion revenue of $0.1 million, which compare to $6.4 million, $36.5 million, nil and $3.3 million, respectively, in the same period of 2012.
U.S. net sales of AMITIZA, as reported to us by our partner, Takeda, for royalty calculation purposes increased 1.4% to $72.5 million for the third quarter of 2013, compared to $71.5 million in the same period of 2012. U.S. net sales of AMITIZA, as reported to us by our partner, Takeda, for royalty calculation purposes, increased 3.5% to $204.1 million for the nine months of 2013, compared to $197.2 million in the same period of 2012.
Cost of Goods Sold
Cost of goods sold relates to purchase and distribution costs of the Company's products sold by the Company, including changes in inventory provisions for excess and obsolete inventory. Cost of goods sold were $6.3 million for the third quarter of 2013, compared to nil for the third quarter of 2012, an increase of $6.3 million. Cost of goods sold were $9.5 million for the nine months of 2013, compared to nil for the prior year period, an increase of $9.5 million. The increase in cost of goods sold relates to drug product sales of AMITIZA in Japan and Switzerland and RESCULA in the U.S. During the third quarter of 2013, Sucampo recorded a non-cash write-off of its RESCULA inventory of $3.0 million to reflect excess quantities of dated product. The excess inventory was largely a result of the necessity to pre-order product in advance of FDA approval due to a planned change in manufacturing facility and lower than anticipated sales within the useful life of the dated product.
Operating Expenses
R&D expenses, comprised of expenses for clinical development of the lubiprostone pediatric indication and liquid formulation, phase 1 trial expenses for oral mucositis, and clinical development expenses for our lumbar spinal stenosis program, were $4.5 million for the third quarter of 2013, compared to $5.6 million for the same period of 2012. The decrease was primarily due to the lower costs associated with our unoprostone isopropyl development program and a lower provision associated with our Numab collaboration. For the first nine months of 2013, R&D expenses were $14.5 million, compared to $14.2 million for the prior year period. The increase in expenses was primarily due to the higher costs associated with clinical development of our phase 2a trial for lumbar spinal stenosis and higher indirect costs including regulatory fees, partially offset by lower costs on our unoprostone isopropyl development program.
G&A expenses were $5.4 million for the third quarter of 2013, compared to $7.3 million for the third quarter of 2012, a decrease of $1.8 million or 25.0%. G&A expenses were $18.6 million for the nine months of 2013, compared to $22.6 million for the prior year period, a decrease of $4.0 million or 17.5%. For both periods, the decrease in G&A expense was primarily due to lower legal, consulting and other professional expenses as a result of the conclusion of certain legal matters in 2012, as well as expense reductions from 2013 productivity initiatives. These decreases were partially offset by a $0.3 million and $1.9 million increase in pharmacovigilance costs associated with the launch of AMITIZA in Japan for the third quarter and nine month period, respectively. Excluding the impact of pharmacovigilance costs, G&A expenses decreased 29.2% in the third quarter and 26.1% during the first nine months of 2013.
Selling and marketing expenses were $6.0 million for the third quarter of 2013, compared to $4.3 million for the third quarter of 2012.Selling and marketing expenses were $16.0 million for the nine months ended September 30, 2013 compared to $14.5 million for the prior year period.For both periods, the increase in selling and marketing expenses relates primarily to launch costs for RESCULA and a $1.5 million non-cash write-offrecorded for excess RESCULA samples, partially offset by non-recurring pre-commercialization planning activities for AMITIZA and RESCULA that occurred in 2012 that did not occur in 2013.
Income (Loss) from Operations
Loss from operations for the third quarter of 2013 was $1.0 million, compared to a loss of $1.7 million for the same period in 2012. Income from operations for the nine months ended September 30, 2013 was $6.5 million, compared to a loss of $4.6 million for the prior year period.
Non-Operating Income (Expense)
Non-operating expense was $0.5 million for the third quarter of 2013, compared to expense of $0.5 million for the same period in 2012. The third quarter of 2013 included a foreign exchange loss of $49,000 compared to a gain of $8,000 in the same period in 2012. Non-operating income was $0.4 million for the nine months ended September 30, 2013, compared to expense of $0.9 million for the same period in 2012. Non-operating expense for the nine months ended September 30, 2013, included a foreign exchange gain of $1.8 million, compared to a foreign exchange gain of $0.7 million for the same period in 2012.
Net (Income) Loss
Net income for the third quarter was $1.3 million, compared to a net loss of $5.9 million for the same period of 2012. Net income for the first nine months of 2013 was $4.3 million, compared to a net loss of $8.7 million for the same period of 2012.
Earnings Excluding Special Items
Net income excluding special items for the third quarter of 2013 was $4.0 million, or $0.09 per diluted share, compared to a net loss of $5.9 million, or ($0.14) per diluted share, in the third quarter of 2012. Net income excluding special items for the first nine months of 2013 was $7.0 million, or $0.16 per diluted share, compared to a net loss of $8.7 million, or ($0.21) per diluted share, in the first nine months of 2012.
Non-GAAP (generally accepted accounting principles) earnings per share (EPS) for the third quarter and nine months ended September 30, 2013 of $0.09 and $0.16, respectively, exclude RESCULA inventory and sample non-cash write-off costs.
A reconciliation of GAAP to non-GAAP net income (loss) and EPS is provided in the tables that follow.
Three Months Ended September 30, |
Nine Months Ended September 30, |
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(In thousands, except per share data) | 2013 | 2013 |
EPS | ||
GAAP Diluted EPS | $ 0.03 | $ 0.10 |
Difference3 | $ 0.06 | 0.06 |
Non-GAAP Diluted EPS that exclude RESCULA inventory/samples non-cash write-off1 | $ 0.09 | 0.16 |
Net income | ||
GAAP net income2 | $ 1,291 | $ 4,266 |
Difference | 2,716 | 2,716 |
Non-GAAP net income that excludes RESCULA inventory/samples non-cash write-off1, 2 | 4,007 | 6,982 |
Increase in net income due to excluded items: | ||
Net increase in income tax before taxes | $ (4,527) | $ (4,527) |
Estimated income tax expense | 1,811 | 1,811 |
Increase in net income | (2,716) | (2,716) |
3.Represents the difference between calculated GAAP EPS and calculated non-GAAP EPS, which may be different than the amount calculated by dividing the impact of the excluded items by the weighted-average shares for the period.
Comprehensive Income (Loss)
Comprehensive income for the third quarter of 2013 was $1.1 million, compared to a comprehensive loss of $6.1 million for the same period in 2012. Comprehensive income for the nine months of 2013 was $3.9 million, compared to comprehensive loss of $10.4 million for the same period in 2012.
Cash, Cash Equivalents, Restricted Cash and Marketable Securities
At September 30, 2013, cash, cash equivalents, restricted cash and investments were $91.0 million, compared to $91.4 million at December 31, 2012. At September 30, 2013, notes payable were $57.9 million, compared to $52.9 million at December 31, 2012, including current notes payable of $28.1 million at September 30, 2013, and $19.1 million at December 31, 2012.
Stock Repurchase Plan
In September 2011, the Board of Directors (Board) authorized the repurchase of our class A common stock under the previously approved repurchase plan, up to an aggregate of $2.0 million. On November 2, 2012, the Board authorized the increase of the program amount up to an aggregate of $5.0 million. During the nine months of 2013, Sucampo repurchased 67,762 shares at a cost of $0.3 million. Since inception, we have repurchased approximately $2.3 million of our common stock. We believe that the cumulative repurchases through the first nine months of this year mitigate any dilutive effects of employee and others' exercises of stock options during the same period. The repurchase program may be used in the future to continue to address any such dilutive effects.
Future Guidance
Sucampo today increased its earnings guidance for 2013 and reaffirmed its guidance for 2014. Sucampo now expects full year 2013 net income, excluding special items, to be in the range of $3.0 million to $5.0 million, or $0.07 to $0.12 per diluted share, versus previous guidance of approximately break-even.
Company to Host Conference Call Today
In conjunction with this second quarter financial and operating results press release, Sucampo will host a conference call today at 5:00 pm Eastern. To participate on the live call, please dial 866-318-8611 (domestic) or 617-399-5130 (international), and provide the participant passcode 61691134, five to ten minutes ahead of the start of the call. A replay of the call will be available within a few hours after the call ends. Investors may listen to the replay by dialing 888-286-8010 (domestic) or 617-801-6888 (international), with the passcode 75849618.
Investors interested in accessing the live audio webcast of the teleconference may do so at http://investor.sucampo.com and should log on before the teleconference begins in order to download any software required. The archive of the teleconference will remain available for 30 days.
About lubiprostone (AMITIZA®)
AMITIZA (lubiprostone) is a prostone, a locally acting chloride channel activator, indicated for the treatment of CIC in adults and OIC in adults with chronic, non-cancer pain (24 mcg twice daily) and for IBS-C (8 mcg twice daily) in women 18 years of age and older in the U.S. In Japan, lubiprostone (24 mcg twice daily) is indicated for the treatment of chronic constipation (excluding constipation caused by organic diseases). In Switzerland, lubiprostone (24 mcg twice daily) is indicated for the treatment of chronic idiopathic constipation. In the U.K., lubiprostone (24 mcg twice daily) is indicated for the treatment of chronic idiopathic constipation and associated symptoms in adults.
About unoprostone isopropyl (RESCULA®)
In 2009, Sucampo acquired development and commercialization rights to unoprostone isopropyl throughout the world except in Japan, Korea, Taiwan and the People's Republic of China. Unoprostone isopropyl 0.12% (trade named RESCULA) first received marketing authorization in 1994 in Japan and was subsequently approved in over 40 countries, including approval in 2000 by the FDA. RESCULA (unoprostone isopropyl ophthalmic solution) 0.15% is indicated for the lowering of intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension in the U.S.
About Sucampo Pharmaceuticals, Inc.
Sucampo Pharmaceuticals, Inc. is focused on the discovery, development and commercialization of drugs based on ion channel activators knows as prostones. Discovered by the company's scientific founder, prostones are naturally occurring fatty acid metabolites with unique physiological activities. Sucampo has two marketed products – AMITIZA and RESCULA – and a pipeline of prostone-based product candidates in clinical development. A global company, Sucampo is headquartered in Bethesda, Maryland, and has operations in the United Kingdom, Switzerland and Japan. For more information, please visit www.sucampo.com.
The Sucampo logo and the tagline, The Science of Innovation, are registered trademarks of Sucampo AG.
AMITIZA is a registered trademark of Sucampo AG. RESCULA is a registered trademark of R-Tech Ueno, Ltd, and has been licensed to Sucampo AG.
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Sucampo Forward-Looking Statement
This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. The forward-looking statements may include statements regarding product development, product potential, future financial and operating results, and other statements that are not historical facts. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the impact of pharmaceutical industry regulation and health care legislation; Sucampo's ability to accurately predict future market conditions; dependence on the effectiveness of Sucampo's patents and other protections for innovative products; the risk of new and changing regulation and health policies in the U.S. and internationally and the exposure to litigation and/or regulatory actions.
No forward-looking statement can be guaranteed and actual results may differ materially from those projected. Sucampo undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this presentation should be evaluated together with the many uncertainties that affect Sucampo's business, particularly those mentioned in the risk factors and cautionary statements in Sucampo's most recent Form 8-K and 10-K, which Sucampo incorporates by reference.
Sucampo Pharmaceuticals, Inc. | ||||
Consolidated Statements of Operations and Comprehensive Income (unaudited) | ||||
(in thousands, except per share data) | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||
2013 | 2012 | 2013 | 2012 | |
Revenues: | ||||
Research and development revenue | $ 2,027 | $ 737 | $ 16,288 | $ 6,418 |
Product royalty revenue | 13,595 | 13,890 | 37,271 | 36,521 |
Product sales revenue | 5,378 | -- | 10,994 | -- |
Co-promotion revenue | -- | 730 | 61 | 3,253 |
Contract and collaboration revenue | 163 | 139 | 490 | 433 |
Total revenues | 21,163 | 15,496 | 65,104 | 46,625 |
Cost of goods sold | 6,267 | -- | 9,457 | -- |
Gross profit | 14,896 | 15,496 | 55,647 | 46,625 |
Operating expenses: | ||||
Research and development | 4,474 | 5,615 | 14,528 | 14,202 |
General and administrative | 5,440 | 7,256 | 18,635 | 22,598 |
Selling and marketing | 6,026 | 4,278 | 15,967 | 14,474 |
Total operating expenses | 15,940 | 17,149 | 49,130 | 51,274 |
Income (loss) from operations | (1,044) | (1,653) | 6,517 | (4,649) |
Non-operating income (expense): | ||||
Interest income | 20 | 68 | 63 | 118 |
Interest expense | (461) | (596) | (1,449) | (1,780) |
Other income (expense), net | (49) | 8 | 1,776 | 727 |
Total non-operating income (expense), net | (490) | (520) | 390 | (935) |
Income (loss) before income taxes | (1,534) | (2,173) | 6,907 | (5,584) |
Income tax benefit (provision) | 2,825 | (3,776) | (2,641) | (3,112) |
Net income (loss) | $ 1,291 | $ (5,949) | $ 4,266 | $ (8,696) |
Net income (loss) per share: | ||||
Basic net income (loss) per share | $ 0.03 | $ (0.14) | $ 0.10 | $ (0.21) |
Diluted net income (loss) per share | $ 0.03 | $ (0.14) | $ 0.10 | $ (0.21) |
Weighted average common shares outstanding - basic | 41,863 | 41,678 | 41,644 | 41,697 |
Weighted average common shares outstanding - diluted | 42,787 | 41,678 | 42,662 | 41,697 |
Comprehensive loss: | ||||
Net income (loss) | $ 1,291 | $ (5,949) | $ 4,266 | $ (8,696) |
Other comprehensive income (loss): | ||||
Unrealized loss on investments, net of tax effect | 18 | 28 | (16) | 23 |
Foreign currency translation | (253) | (175) | (387) | (1,767) |
Comprehensive income (loss) | $ 1,056 | $ (6,096) | $ 3,863 | $ (10,440) |
Sucampo Pharmaceuticals, Inc. | ||
Consolidated Balance Sheets (unaudited) | ||
(in thousands, except share data) | ||
September 30, | December 31, | |
2013 | 2012 | |
ASSETS: | ||
Current assets: | ||
Cash and cash equivalents | $ 39,911 | $ 52,022 |
Investments, current | 15,263 | 6,035 |
Product royalties receivable | 13,595 | 14,175 |
Unbilled accounts receivable | -- | 732 |
Accounts receivable, net | 2,694 | 1,360 |
Deferred tax assets, current | 1,273 | 874 |
Deferred charge, current | 673 | 673 |
Income taxes receivable | 2,013 | -- |
Restricted cash, current | 26,141 | 15,113 |
Inventory | 261 | -- |
Prepaid expenses and other current assets | 3,835 | 1,930 |
Total current assets | 105,659 | 92,914 |
Investments, non-current | 7,259 | 14,408 |
Property and equipment, net | 1,278 | 1,540 |
Intangibles assets, net | 6,686 | 7,415 |
Deferred tax assets, non-current | 1,162 | 1,654 |
Deferred charge, non-current | 4,709 | 5,213 |
Restricted cash, non-current | 2,430 | 3,832 |
Other assets | 537 | 820 |
Total assets | $ 129,720 | $ 127,796 |
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
Current liabilities: | ||
Accounts payable | $ 2,934 | $ 5,496 |
Accrued expenses | 6,211 | 10,595 |
Deferred revenue, current | 1,148 | 3,700 |
Income tax payable | -- | 148 |
Notes payable, current | 28,114 | 19,129 |
Other current liabilities | 1,286 | 1,003 |
Total current liabilities | 39,693 | 40,071 |
Notes payable, non-current | 29,812 | 33,722 |
Deferred revenue, non-current | 6,490 | 7,093 |
Deferred tax liability, non-current | 2,632 | 2,627 |
Other liabilities | 1,296 | 1,253 |
Total liabilities | 79,923 | 84,766 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 5,000,000 shares authorized at September 30, 2013 and December 31, 2012; | ||
no shares issued and outstanding at September 30, 2013 and December 31, 2012 | -- | -- |
Class A common stock, $0.01 par value; 270,000,000 shares authorized at September 30, 2013 and December 31, 2012; | ||
42,389,346 and 41,964,905 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 423 | 420 |
Additional paid-in capital | 65,758 | 62,521 |
Accumulated other comprehensive income | 15,763 | 16,166 |
Treasury stock, at cost; 524,792 and 457,030 shares | (2,313) | (1,977) |
Accumulated deficit | (29,834) | (34,100) |
Total stockholders' equity | 49,797 | 43,030 |
Total liabilities and stockholders' equity | $ 129,720 | $ 127,796 |
Sucampo Pharmaceuticals, Inc. | ||||
Key Segment Information (unaudited) | ||||
(In thousands) | Americas | Europe | Asia | Consolidated |
Three Months Ended September 30, 2013 | ||||
Research and development revenue | $ 2,027 | $ -- | $ -- | $ 2,027 |
Product royalty revenue | 13,595 | -- | -- | 13,595 |
Product sales revenue | 170 | 17 | 5,191 | 5,378 |
Co-promotion revenue | -- | -- | -- | -- |
Contract and collaboration revenue | 141 | 12 | 10 | 163 |
Total revenues | 15,933 | 29 | 5,201 | 21,163 |
Cost of goods sold | 3,389 | 4 | 2,874 | 6,267 |
Gross profit | 12,544 | 25 | 2,327 | 14,896 |
Research and development expenses | 2,467 | 1,088 | 919 | 4,474 |
Depreciation and amortization | 309 | 47 | 8 | 364 |
Other operating expenses | 8,893 | 1,646 | 563 | 11,102 |
Income (loss) from operations | 875 | (2,756) | 837 | (1,044) |
Interest income | 18 | 2 | -- | 20 |
Interest expense | -- | (417) | (44) | (461) |
Other non-operating expense, net | 6 | 95 | (150) | (49) |
Income (loss) before income taxes | $ 899 | $ (3,076) | $ 643 | $ (1,534) |
Capital expenditures | $ 9 | $ 4 | $ -- | $ 13 |
Three Months Ended September 30, 2012 | ||||
Research and development revenue | $ 665 | $ 72 | $ -- | $ 737 |
Product royalty revenue | 13,890 | -- | -- | 13,890 |
Product sales revenue | -- | -- | -- | -- |
Co-promotion revenue | 730 | -- | -- | 730 |
Contract and collaboration revenue | 141 | (15) | 13 | 139 |
Total revenues | 15,426 | 57 | 13 | 15,496 |
Cost of goods sold | -- | -- | -- | -- |
Gross profit | 15,426 | 57 | 13 | 15,496 |
Research and development expenses | 2,239 | 2,543 | 833 | 5,615 |
Depreciation and amortization | 122 | 242 | 10 | 374 |
Other operating expenses | 9,677 | 1,161 | 322 | 11,160 |
Income (loss) from operations | 3,388 | (3,889) | (1,152) | (1,653) |
Interest income | 65 | 3 | -- | 68 |
Interest expense | -- | (556) | (40) | (596) |
Other non-operating expense, net | 34 | 165 | (191) | 8 |
Income (loss) before income taxes | $ 3,487 | $ (4,277) | $ (1,383) | $ (2,173) |
Capital expenditures | $ 41 | $ -- | $ -- | $ 41 |
Nine Months Ended September 30, 2013 | ||||
Research and development revenue | $ 16,288 | $ -- | $ -- | $ 16,288 |
Product royalty revenue | 37,271 | -- | -- | 37,271 |
Product sales revenue | 277 | 37 | 10,680 | 10,994 |
Co-promotion revenue | 61 | -- | -- | 61 |
Contract and collaboration revenue | 424 | 34 | 32 | 490 |
Total revenues | 54,321 | 71 | 10,712 | 65,104 |
Cost of goods sold | 3,465 | 12 | 5,980 | 9,457 |
Gross profit | 50,856 | 59 | 4,732 | 55,647 |
Research and development expenses | 6,446 | 4,307 | 3,775 | 14,528 |
Depreciation and amortization | 543 | 548 | 26 | 1,117 |
Other operating expenses | 27,368 | 3,374 | 2,743 | 33,485 |
Income (loss) from operations | 16,499 | (8,170) | (1,812) | 6,517 |
Interest income | 54 | 8 | 1 | 63 |
Interest expense | -- | (1,326) | (123) | (1,449) |
Other non-operating expense, net | (9) | (169) | 1,954 | 1,776 |
Income (loss) before income taxes | $ 16,544 | $ (9,657) | $ 20 | $ 6,907 |
Capital expenditures | $ 40 | $ 110 | $ 3 | $ 153 |
Nine Months Ended September 30, 2012 | ||||
Research and development revenue | $ 5,878 | $ 74 | $ 466 | $ 6,418 |
Product royalty revenue | 36,521 | -- | -- | 36,521 |
Product sales revenue | -- | -- | -- | -- |
Co-promotion revenue | 3,253 | -- | -- | 3,253 |
Contract and collaboration revenue | 424 | (30) | 39 | 433 |
Total revenues | 46,076 | 44 | 505 | 46,625 |
Cost of goods sold | -- | -- | -- | -- |
Gross profit | 46,076 | 44 | 505 | 46,625 |
Research and development expenses | 6,250 | 5,405 | 2,547 | 14,202 |
Depreciation and amortization | 366 | 709 | 30 | 1,105 |
Other operating expenses | 32,475 | 2,576 | 916 | 35,967 |
Income (loss) from operations | 6,985 | (8,646) | (2,988) | (4,649) |
Interest income | 105 | 12 | 1 | 118 |
Interest expense | -- | (1,656) | (124) | (1,780) |
Other non-operating expense, net | 67 | 82 | 578 | 727 |
Income (loss) before income taxes | $ 7,157 | $ (10,208) | $ (2,533) | $ (5,584) |
Capital expenditures | $ 293 | $ 3,445 | $ -- | $ 3,738 |
CONTACT: Sucampo Pharmaceuticals, Inc. Silvia Taylor Senior Vice President, Investor Relations, PR, and Corporate Communications 1-240-223-3718 staylor@sucampo.com