Sucampo fails in Amitiza arbitration with Takeda

US drugmaker Sucampo Pharmaceuticals (Nasdaq: SCMP) says that it has received a final binding decision on its claims in the dispute with its partner, Japan’s biggest drugmaker Takeda Pharmaceutical (TYO: 4502), saying the International Court of Arbitration, International Chamber of Commerce (ICC) did not agree with Sucampo’s claims and did not award any attorneys’ fees or costs. Predictably, Sucampo expressed its disappointment with the ICC’s decision. Shares in the US company slumped, closing trading on Friday down 25% at $5.23.

The decision confirms that the collaboration agreement between the two firms and all of its terms, rights and conditions for Amitiza (lubiprostone) - which was licensed to Takeda for North America in 2004 - will remain in force until it expires in October 2020, including the royalty rate arrangement. The royalty revenue to Sucampo was $41.5 million in 2011 and $10.9 million in the first quarter of 2012. The US firm has argued that Takeda’s marketing efforts had not been sufficiently robust. Amitiza was approved for the treatment of chronic idiopathic constipation (CIC) in adults in 2006 and for the treatment of irritable bowel syndrome with constipation (IBS-C) in adult women in 2008. This drug is the only FDA-approved medicine for either of these indications.

“Through this arbitration process, we have gained a greater understanding that there is significant potential to further increase Amitiza’s value, make the product available to currently underserved patients, and maximize its net sales revenue by optimizing its marketing and commercialization efforts,” commented Ryuji Ueno, Sucampo’s chairman and chief executive on Friday, adding: “We anticipate filing a supplemental new drug application in the near-term for the treatment of opioid-induced constipation which, if approved, would be the third indication for Amitiza.”