Sucampo Pharma (SCMP) Clarifies Previously Announced FY15, FY16 Guidance

Sucampo Pharmaceuticals, Inc. (Sucampo) (NASDAQ: SCMP) provided additional detail regarding its previously announced guidance for 2015 and 2016, to include expected non-cash purchase accounting adjustments and expenses related to the R-Tech Ueno (RTU) acquisition that closed in the fourth quarter of 2015.

For the full year ended December 31, 2015, Sucampo expects to achieve adjusted net income in the range of $30.0 million to $35.0 million, adjusted EPS of $0.65 to $0.75 per diluted share, and adjusted EBITDA of $55.0 million to $60.0 million. Adjusted net income includes approximately $5.3 million in interest and debt issuance expense and $5.7 million in one-time charges to be expensed in the fourth quarter of 2015, related to the RTU acquisition. Adjusted net income excludes the non-cash amortization of intangibles of approximately $2.9 million and the amortization of inventory step-up costs of approximately $3.5 million, both related to the RTU acquisition. Inventory step-up costs are amortized straight-line over seven months, which is the expected turn of inventory. In 2015, the company will recognize two months of amortized inventory step-up costs, with the remaining five months expensed in the first half of 2016. For the full year 2015, GAAP net income including non-cash amortization is expected to be in the range of $24 million to $29 million, or $0.51 to $0.61 per diluted share.

Sucampo is also confirming its previous guidance for 2016 of total revenue of $195.0 million to $205.0 million, adjusted net income of $45.0 million to $50.0 million, adjusted EPS of $0.97 to $1.07, and adjusted EBITDA of $100.0 million to $105.0 million. Adjusted net income guidance excludes amortization of acquired intangibles of approximately $17.6 million and amortization of the remaining inventory step-up costs of approximately $8.9 million.

Sucampo will separately file an amended Current Report on Form 8-K to provide historical RTU financial statements and pro forma combined financial information relating to the acquisition. Sucampo had previously expected to file this amendment by January 5, 2016. This filing has been delayed pending completion of required additional US-GAAS audit procedures and Japanese GAAP-to-US-GAAP conversion. As a result, the purchase accounting and the completion of the valuation for the acquired intangible assets have not been finalized and are subject to further review.

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