Maxim cuts Sucampo Pharma price target to $17
Maxim Group lowered its price target for Sucampo Pharmaceuticals (NASDAQ:SCMP) to $17 from $26, citing a combination of the market environment and an assessment of the catalysts and risks. The stock was quoted at $11.89 at afternoon trading on Monday.
Analyst Jason Kolbert writes that he expects Sucampo’s stock to be driven by the quarterly sales progress associated with Amitiza, integration progress with RJ Ueno (Japan), and future product acquisitions.
“Given the lack of specific drivers, we believe a higher risk value is appropriate in the current market environment,” he said. “As such, we are adjusting our risk value back up to 15%, from 10%, which lowers our price target to $17 from $26.”
Mr. Kolbert said there are three catalysts to watch with Sucampo. They include an investment in Cancer Prevention Pharmaceuticals, with the potential to enter the rare and orphan disease space of gastroenterology; a Phase 3 study of Amitiza in pediatric functional constipation in children, six-to-17 years of age; and development of an alternate formulation of Amitiza for children and adults who are unable to take the current encapsulated formulation.