Reed Research
Biotech, small-cap, long/short equity, special situations

Evaluating Sucampo's Upside Potential

In the new CEO's first earnings conference call in May, SCMP CEO Peter Greenleaf outlined the 3 important elements of great biopharmaceutical companies: Great people/partnerships, great science and strong fundamentals. I agree with his observations and will add more color to these three aspects of Sucampo. Thereafter, I will dive into the details of Amitza, the main value driver of Sucampo's sales and present the future outlook of Sucampo to evaluate its upside potential in the next year.

People and partnerships

As of Q1 2014, Sucampo had 77 full-time employees, ~30% with doctoral or other advanced degrees. who are engaged in research and development. The R&D costs have held steady for the past 2 years with an annual run rate...

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