Sucampo Pharmaceuticals Inc. Q1 2008 Earnings Call Transcript

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2008-05-26 10:24:11.0

Tags: Sucampo Pharmaceuticals Inc.

Question-and-Answer Session

Operator

(Operator Instructions)

Our first question is coming from the line of Ian Sanderson with Cowen and Company. Please proceed with your question.

Ian Sanderson - Cowen and Company

Thank you and good morning. Thanks for taking the question. Mariam, can you provide some additional color on Takeda's AMITIZA shipment delays in the quarter if you know what the cause was there? And did that actually result in trade stockouts that may have impacted prescription filling in the quarter? And you mentioned that this was to be resolved in April. Do you know if it actually was resolved in April?

Mariam Morris

Yes, we do have preliminary reports from Takeda, and we did see their correction based on those preliminary reports. It was basically just a delay in their shipping in order to effectively manage their inventory.

Ian Sanderson - Cowen and Company

So, this was an intentional --?

Mariam Morris

It's the way the shipping delayed. They shipped that so it would be destination primarily. And so, the timing in which they shipped caused the delay.

Ian Sanderson - Cowen and Company

And so you get paid on product that is actually shipped out the door from Takeda? Is that correct?

Mariam Morris

That's the way the net sales work currently. Yes, that is correct.

Ian Sanderson - Cowen and Company

Okay. And --?

Brad Fackler

And Ian, this is Brad. I should point out that that delay was just in the shipment from the Takeda warehouse to the wholesalers, and we have no indication that there was any kind of impact at the retail level.

Mariam Morris

That's right.

Ian Sanderson - Cowen and Company

Okay. And is your understanding or where do they stand in terms of manufacturing and trade stocking for the 8 microgram dose?

Brad Fackler

We're on track with that right now. In fact, as we speak, we believe product is moving into the warehouses at this point. We along with our partners at Takeda are actively involved in a stocking campaign to ensure that we have adequate levels in the retail outlets when the actual promotion starts.

Ian Sanderson - Cowen and Company

Okay. And then finally, just why the late June commercial launch? I know they are making a big push at the DDW later this month. What's the delay there?

Brad Fackler

Yes, well, this launch will take place before the end of June. We are making a big push at DDW, and I think what we need to make sure is that we have sufficient levels in the retail sector prior to going out with the field forces to do that.

 

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