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 Ended September 30, Nine Months Ended 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 inventory/samples non-cash write-off1  0.09  0.16
GAAP net income2  1,291  4,266
Non-GAAP net income that excludes RESCULA inventory/samples non-cash write-off1, 2  4,007  6,982

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 Ended September 30, Nine Months Ended September 30,
(In thousands, except per share data) 2013 2013
EPS  
GAAP Diluted EPS  $ 0.03  $ 0.10
Difference3  $ 0.06  0.06
Non-GAAP Diluted EPS that exclude RESCULA inventory/samples non-cash write-off1  $ 0.09  0.16
Net income   
GAAP net income2  $ 1,291  $ 4,266
Difference  2,716  2,716
Non-GAAP net income that excludes RESCULA inventory/samples non-cash write-off1, 2  4,007  6,982
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.

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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 September 30, Nine Months Ended September 30,
  2013 2012 2013 2012
         
Revenues:        
Research and development revenue  $ 2,027  $ 737  $ 16,288  $ 6,418
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 revenue  163  139  490  433
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 operations  (1,044)  (1,653)  6,517  (4,649)
Non-operating income (expense):        
Interest income  20  68  63  118
Interest expense  (461)  (596)  (1,449)  (1,780)
Other income (expense), net  (49)  8  1,776  727
Total non-operating income (expense), net  (490)  (520)  390  (935)
         
Income (loss) before income taxes  (1,534)  (2,173)  6,907  (5,584)
Income tax benefit (provision)  2,825  (3,776)  (2,641)  (3,112)
Net income (loss)  $ 1,291  $ (5,949)  $ 4,266  $ (8,696)
         
Net income (loss) per share:        
Basic net income (loss) per share  $ 0.03  $ (0.14)  $ 0.10  $ (0.21)
Diluted net income (loss) per share  $ 0.03  $ (0.14)  $ 0.10  $ (0.21)
Weighted average common shares outstanding - basic  41,863  41,678  41,644  41,697
Weighted average common shares outstanding - diluted  42,787  41,678  42,662  41,697
         
Comprehensive loss:        
Net income (loss)  $ 1,291  $ (5,949)  $ 4,266  $ (8,696)
Other comprehensive income (loss):        
Unrealized loss on investments, net of tax effect  18  28  (16)  23
Foreign currency translation  (253)  (175)  (387)  (1,767)
Comprehensive income (loss)  $ 1,056  $ (6,096)  $ 3,863  $ (10,440)
 
 
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, 2012, respectively  423  420
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 revenue  141  12  10  163
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 expenses  2,467  1,088  919  4,474
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 taxes  $ 899  $ (3,076)  $ 643  $ (1,534)
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 revenue  141  (15)  13  139
Total revenues  15,426  57  13  15,496
Cost of goods sold  --   --   --   -- 
Gross profit  15,426  57  13  15,496
Research and development expenses  2,239  2,543  833  5,615
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 taxes  $ 3,487  $ (4,277)  $ (1,383)  $ (2,173)
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 revenue  424  34  32  490
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 expenses  6,446  4,307  3,775  14,528
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 taxes  $ 16,544  $ (9,657)  $ 20  $ 6,907
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 revenue  424  (30)  39  433
Total revenues  46,076  44  505  46,625
Cost of goods sold  --   --   --   -- 
Gross profit  46,076  44  505  46,625
Research and development expenses  6,250  5,405  2,547  14,202
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 taxes  $ 7,157  $ (10,208)  $ (2,533)  $ (5,584)
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         staylor@sucampo.com

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