Leerink Partners Starts Sucampo Pharmaceuticals (SCMP) at Market Perform

Leerink Partners initiates coverage on Sucampo Pharmaceuticals (NASDAQ: SCMP) with a Market Perform rating and a price target of $28.00, saying shares are fully valued.

Analyst Jason Gerberry commented, "For investors SCMP offers: (1) strong mgmt. team -- new CEO Peter Greenleaf has brought strategic focus to the pipeline and business development efforts; (2) cash flow enabler -- Amitiza (constipation), partnered with Takeda, continues to have solid growth keyed by product category tailwinds & life cycle mgmt.; a settlement agreement with Par Pharma limits generic risk through 2020E. However, these factors are offset by: (1) pipeline that is still early -- SCMP's two cobiprostone programs are relatively early and true value unlocking (pivotal) data won't be available until 2018-19; (2) limited capital deployment optionality -- firepower to do cash deals is low and investors should not expect accretive deals near term as SCMP lacks a commercial platform. Our SCMP price target of $28 is based on DCF analysis with a 10% WACC."

For an analyst ratings summary and ratings history on Sucampo Pharmaceuticals click here. For more ratings news on Sucampo Pharmaceuticals click here.

Shares of Sucampo Pharmaceuticals closed at $27.06 yesterday.

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