Sucampo Pharmaceuticals, Inc. Reports Third Quarter and Nine Months 2013 Financial and Operating Results 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 Revenue Grew 39.6% Year-Over-Year for the Nine Months of 2013 *U.S. AMITIZA^® (lubiprostone) Net Sales, As Reported By Our Partner, Increased 3.5% Year-Over-Year for the Nine Months of 2013 *Sucampo revenue from sales of AMITIZA in Japan grew 58.2% in third as compared to second quarter of the year *Sucampo Raises 2013 Earnings Guidance, Excluding Special Items *Sucampo Announces Commercial Strategy Changes *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 Nine Months Ended Ended September 30, 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 0.09 0.16 inventory/samples non-cash write-off^1 GAAP net income^2 1,291 4,266 Non-GAAP net income that excludes RESCULA 4,007 6,982 inventory/samples non-cash write-off^1, 2 ^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 – *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 first nine months of 2013, compared to $197.2 million in the same period for 2012. *Sucampo continued its sales growth in the Japanese market, reporting a 58.2% increase in AMITIZA product sales revenue of $5.2 million compared to the second quarter of 2013. *Sucampo showed sequential quarterly sales growth in Switzerland for AMITIZA for chronic idiopathic constipation (CIC). *Sucampo continued partnership discussions for strategic alliances for AMITIZA for global markets outside of the U.S. and Japan, including Europe, China, Latin America and other emerging markets. *In October, Sucampo announced the initiation of a pivotal trial of a liquid formulation of lubiprostone 24 mcg twice daily in adults. *Sucampo continued its preparation for initiation of the pivotal phase 3 program in pediatric functional constipation. *Sucampo recently announced that its development partner, R-Tech Ueno Ltd., completed patient enrollment of a phase 3 clinical trial for unoprostone isopropyl for RP in Japan. A substantial portion of the development costs for the program are being funded by the Japan Science and Technology Agency. Sucampo has rights to the clinical data for potential filing in Europe and the U.S., where unoprostone isopropyl has orphan drug designation, and will decide on our path forward assuming the Japanese trial is successful. *In October, Sucampo announced the publication in the Journal of Pediatric Gastroenterology & Nutrition of a manuscript on pediatric functional constipation in children based on an open-label study on lubiprostone in children and adolescents with functional constipation. This study demonstrated that lubiprostone is efficacious and well-tolerated in this patient population. *Sucampo initiated a phase 1b trial for cobiprostone for the treatment of oral mucositis in October. *Progress continued in our search for a new Chief Executive Officer. As Sucampo previously announced, Ryuji Ueno, M.D., Ph.D., Ph.D., will focus solely on his role as Chief Scientific Officer and driving the overall scientific direction of the company, once a new CEO is named. 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 *Submission of filings via the mutual recognition procedure (MRP) for AMITIZA in other European markets *Filing for National Institute for Health and Care Excellence endorsement for CIC and OIC and launching AMITIZA in the U.K. 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 *Oral Mucositis + 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 Nine Months Ended Ended September 30, September 30, (In thousands, except per share data) 2013 2013 EPS GAAP Diluted EPS $0.03 $0.10 Difference^3 $0.06 0.06 Non-GAAP Diluted EPS that exclude RESCULA $0.09 0.16 inventory/samples non-cash write-off^1 Net income GAAP net income^2 $1,291 $4,266 Difference 2,716 2,716 Non-GAAP net income that excludes RESCULA 4,007 6,982 inventory/samples non-cash write-off^1, 2 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. Follow us on Twitter (@Sucampo_Pharma). Follow us on LinkedIn (Sucampo Pharmaceuticals). Twitter LinkedIn 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 Nine Months Ended September September 30, 30, 2013 2012 2013 2012 Revenues: Research and development $2,027 $737 $16,288 $6,418 revenue 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 163 139 490 433 revenue 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 (1,044) (1,653) 6,517 (4,649) operations Non-operating income (expense): Interest income 20 68 63 118 Interest expense (461) (596) (1,449) (1,780) Other income (expense), (49) 8 1,776 727 net Total non-operating income (490) (520) 390 (935) (expense), net Income (loss) before (1,534) (2,173) 6,907 (5,584) income taxes Income tax benefit 2,825 (3,776) (2,641) (3,112) (provision) Net income (loss) $1,291 $(5,949) $4,266 $(8,696) Net income (loss) per share: Basic net income (loss) $0.03 $(0.14) $0.10 $(0.21) per share Diluted net income (loss) $0.03 $(0.14) $0.10 $(0.21) per share Weighted average common 41,863 41,678 41,644 41,697 shares outstanding - basic Weighted average common shares outstanding - 42,787 41,678 42,662 41,697 diluted Comprehensive loss: Net income (loss) $1,291 $(5,949) $4,266 $(8,696) Other comprehensive income (loss): Unrealized loss on investments, net of tax 18 28 (16) 23 effect Foreign currency (253) (175) (387) (1,767) translation Comprehensive income $1,056 $(6,096) $3,863 $(10,440) (loss) 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, 423 420 2012, respectively 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 141 12 10 163 revenue 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 2,467 1,088 919 4,474 expenses 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 $899 $(3,076) $643 $(1,534) taxes 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 141 (15) 13 139 revenue Total revenues 15,426 57 13 15,496 Cost of goods sold -- -- -- -- Gross profit 15,426 57 13 15,496 Research and development 2,239 2,543 833 5,615 expenses 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 $3,487 $(4,277) $(1,383) $(2,173) taxes 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 424 34 32 490 revenue 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 6,446 4,307 3,775 14,528 expenses 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 $16,544 $(9,657) $20 $6,907 taxes 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 424 (30) 39 433 revenue Total revenues 46,076 44 505 46,625 Cost of goods sold -- -- -- -- Gross profit 46,076 44 505 46,625 Research and development 6,250 5,405 2,547 14,202 expenses 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 $7,157 $(10,208) $(2,533) $(5,584) taxes 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 firstname.lastname@example.org Sucampo Logo
Sucampo Pharmaceuticals, Inc. Reports Third Quarter and Nine Months 2013 Financial and Operating Results
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