Quick Win By The Algorithm: SCMP Gains on Rumor of Takeover

Quick Win By The Algorithm

On December 3rd, 2017, I Know First issued a bullish 14 day forecast for Sucampo Pharmaceuticals, Inc. (Nasdaq: SCMP). The forecast showed a signal of 113.35 and a predictability of 0.3. In accordance with the forecast, SCMP’s stock returned 30.86% over this period, solidifying another quick win by the I Know First algorithm.

SCMP’s shares appreciated nicely during the forecast period.  The reason for the move higher was the whispers on the street that Sucampo Pharmaceuticals was going to be acquired.  On December 7th, people familiar with the matter indicated that Sucampo Pharmaceuticals was reviewing its options including a sale of the business after receiving takeover interest.  Lo and behold, on December 26th, the rumor became fact when UK-based pharmaceutical company Mallinckrodt Plc announced it would buy Sucampo Pharmaceuticals in a deal valued at $1.2B.

Company Profile

Sucampo Pharmaceuticals, Inc., a biopharmaceutical company, focuses on developing, identifying, acquiring, and marketing medicines that meet unmet medical needs, primarily in gastroenterology, ophthalmology, and oncology-related disorders in the United States, Japan, Switzerland, and internationally. The company’s marketed product includes AMITIZA (lubiprostone), a ClC-2 chloride channel activator for the treatment of chronic idiopathic constipation (CIC) in adults, irritable bowel syndrome with constipation in adult women (IBS-C), and opioid-induced constipation (OIC)in patients with chronic non-cancer related pain; and RESCULA (unoprostone isopropyl), a big potassium channel activator for the treatment of glaucoma and ocular hypertension. Its product candidates in clinical development stage comprise Lubiprostone that is in Phase III clinical trials for the treatment of pediatric functional constipation and (IBS-C); and completed Phase III clinical trials for the treatment of (CIC) in adults, IBS-C in adult women, and OIC in patients with chronic non-cancer pain, as well as CPP-1X/sulindac combination product, which has completed Phase III clinical trials for the treatment of familial adenomatous polyposis. The company is also developing VTS-270, which is in a pivotal Phase 2b/3 trial for the treatment of Niemann-Pick Disease Type C1. Sucampo Pharmaceuticals, Inc. was founded in 1996 is headquartered in Rockville, Maryland.

Small Cap Stock Forecasts

Current I Know First subscribers received this bullish SCMP forecast on December 3rd, 2017


Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.