Sucampo Pharmaceuticals (NASDAQ: SCMP ) recently heard back from the FDA regarding its supplemental new drug application for constipation drug Amitiza, which the company is looking to expand into an opioid-induced constipation indication. Aside from laxatives, there is no existing treatment for this indication.
Not surprisingly, the stock surged following word of acceptance from the FDA. This is great news and good timing as well for Sucampo, which has seen increased competition in the broader "constipation market," most notably from the likes of Ironwood Pharmaceuticals (NASDAQ: IRWD ) . Ironwood's drug Linzess, developed in conjunction with Forest Labs (NYSE: FRX ) , recently gained FDA approval and will compete directly with Amitiza.
Sucampo's new indication will prove invaluable in helping to offset the increasing competition. Watch the following video for Fool.com analyst Brenton Flynn's full-story coverage.
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