Synergy Pharmaceuticals Inc fka SGYPQ

[Snackman]

With FDA Approvals in Sight, Will Synergy Pharmaceuticals and Agile Therapeutics Skyrocket as H.C Wainwright Predicts?

[e-mail] (Ben Mahaney)

SmarterAnalystDecember 8, 2017
If H.C. Wainwright analysts are right, a great deal of upside potential hangs in the balance for two biotech players: Synergy Pharmaceuticals Inc (NASDAQ:SGYP) and Agile Therapeutics Inc (NASDAQ:AGRX).

With both companies approaching PDUFA dates with destiny, H.C. Wainwright is upbeat on chances for FDA approval, as Synergy eyes a green light in IBS-C and Agile is raring to hit the contraceptive patch market.

Will Label Extension Be a Rapid-Fire "Turning Point" for Synergy Sales?

Synergy is on track for a meaningful uptick in sales gains as far as H.C. Wainwright analyst Ram Selvaraju is concerned; especially if this drug maker secures a label extension for use in constipation-predominant irritable bowel syndrome (IBS-C).

In reaction, the analyst maintains a Buy rating on Synergy stock while trimming the price target from $8 to $7 to reflect the latest financing move. The new target implies a 280% upside from where the shares last closed.

Yet, despite the price target reduction, make no mistake; Selvaraju is a steadfast bull on Synergy's opportunity ahead, anticipating that should label extension be within reach, "Synergy is likely to experience a significant acceleration in sales growth."
Selvaraju highlights, "Since the new product blocks restricting formulary access for the first six months after Trulance market entry have now expired, we continue to believe that sales should be meaningfully increased in the final quarter of the year. However, we also anticipate that the bulk of acceleration in prescription growth should only occur after the IBS-C label extension occurs in January."

Looking ahead to next year, the analyst angles for around $85 million in sales for Trulance.