BioTuesdays: MLV starts Sucampo Pharma at buy ($14 target)
May 2, 2013 by stephenkilmer · Leave a Comment
MLV & Co. has initiated coverage of Sucampo Pharmaceuticals (NASDAQ:SCMP) with a “buy” rating and $14 price target, saying “this is no longer the old Sucampo that in years past had one drug with nearly flat sales growth (and share price) sold in one market by a tepid partner.” The stock was changing hands at $8.82 Thursday morning.
“With the recent approval of Amitiza for opioid-induced constipation (OIC) and a broad relaunch of the drug by partner Takeda expected next month, we see Amitiza moving towards the cornerstone treatment position in the constipation market,” writes analyst Ed Arce.
“We see substantial long-term growth driven by a reinvigorated core business, two product launches in the past six months and a third expected in two weeks,” he said. “The overall business is now significantly de-risked, in our view, given that its key drug, Amitiza, has a unique three-indication label, and is available in the top two markets (U.S. and Japan), with a broad EU label expected in 2014.”