Sucampo Pharmaceuticals - Absorbing Amitiza’s generic threat
Jan 17th 2013 - Edison Investment Research today published a report on Sucampo Pharmaceuticals entitled "Absorbing Amitiza’s Generic Threat". In summary, the report says:
News that Anchen Pharmaceuticals has submitted an ANDA with Paragraph IV certification against Amitiza was not a surprise to us. Sucampo says it has been preparing a patent defence strategy for its key growth driver and we expect the company to file for patent infringement. Amitiza’s listed patents expire in 2020-27, but we now prudently assume that generics enter the US market in 2018, three years ahead of our prior estimate of market exclusivity until 2020. We reduce our rNPV for Amitiza by 25%, but offset this with the inclusion of a $25m contribution from new pipeline candidates, which are increasingly important to diversify Sucampo’s portfolio. Our overall valuation is lowered to $315m ($7.52/share) from $345m ($8.24/share).
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