December 7, 2017 / 9:11 PM / in 10 months

Sucampo weighs sale after fielding takeover interest: Bloomberg

(Reuters) - Sucampo Pharmaceuticals Inc SCMP.O is considering selling itself after receiving takeover interest, Bloomberg reported on Thursday, citing people familiar with the matter.

Shares of the company surged as much as 18.4 percent to $17.70, their highest in nearly two years, valuing the company at about $825 million.

The company is reviewing options, including an outright sale, and could be attractive to large drugmakers with an interest in its gastroenterology portfolio, according to the report. (

A Sucampo spokeswoman declined to comment.

The drugmaker is undervalued, generates free cash flow and has a strong orphan drug pipeline, Maxim Group analyst Jason Kolbert said.

The stock trades at 10.9 times forward earnings, against 21.3 times for the biotechnology and medical research industry, according to Thomson Reuters data.

Its late-stage pipeline includes drugs to treat two rare genetic diseases for which treatments are sparse. If approved, the drugs are likely to justify high pricing, Kolbert said.

Sucampo reported strong revenue growth in the latest quarter, driven by sales of constipation drug Amitiza, and raised it full-year revenue forecast.

Reporting by Tamara Mathias in Bengaluru; Editing by Anil D'Silva

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