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NEW YORK--(BUSINESS WIRE)--
Synergy Pharmaceuticals Inc. (SGYP) today announced Marino Garcia, the company’s EVP and Chief Strategy Officer, will present a corporate update at the Rodman & Renshaw Conference on Monday, September 12, 2016 at 5:30 p.m. Eastern Time at the Lotte New York Palace Hotel in New York.
A live webcast of the presentation will be accessible through the Investor Relations section of the company’s website at www.synergypharma.com. A replay of the webcast will be available on Synergy’s website for 60 days following the conference.
About Synergy Pharmaceuticals Inc.
Synergy is a biopharmaceutical company focused on the development and commercialization of novel gastrointestinal (GI) therapies. The company has pioneered discovery, research and development efforts around analogs of uroguanylin, a naturally occurring human GI peptide, for the treatment of functional GI disorders and inflammatory bowel disease. Synergy discovered, is developing and retains 100% worldwide rights to its proprietary uroguanylin analog technology platform that includes two lead product candidates – plecanatide and dolcanatide. Plecanatide is Synergy’s first uroguanylin analog currently being evaluated for use as a once-daily tablet for chronic idiopathic constipation and irritable bowel syndrome with constipation. Dolcanatide is Synergy’s second uroguanylin analog currently being explored for ulcerative colitis. For more information, please visit www.synergypharma.com.
MeetMe Announces $15 Million Share Repurchase Program
[Business Wire]
September 6, 2016
NEW HOPE, Pa.--(BUSINESS WIRE)--
MeetMe, Inc. (MEET), a public market leader for social discovery, announced today that its board of directors has approved a one year share repurchase program that enables the company to purchase up to $15 million of its shares of common stock from time to time in the open market or through negotiated transactions. Share purchases will be funded from cash from operations.
“With significant free cash flow being generated through our successful business model, we believe our stock is undervalued and the repurchase of our shares is an efficient use of our excess capital and will enhance shareholder value,” said Geoff Cook, Chief Executive Officer of MeetMe. “We believe the share repurchase program is supported by our growing scale and increased profitability. The strength of our balance sheet gives us the confidence and flexibility to execute this program and the Skout, Inc. acquisition for the benefit of our shareholders.”
Repurchases under MeetMe’s program will be made in the open market or through privately negotiated transactions intended to comply with the Securities and Exchange Commission Rule 10b-18, subject to market conditions, applicable legal requirements, and other relevant factors. The share repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended at any time at the Company’s discretion. MeetMe had approximately 54.4 million shares of common stock outstanding as of August 31, 2016.
About MeetMe, Inc.
MeetMe® is a leading social network for meeting new people in the US and a public market leader for social discovery (MEET). MeetMe makes it easy to discover new people to chat with on mobile devices. With approximately 90 percent of traffic coming from mobile and more than one million total daily active users, MeetMe is fast becoming the social gathering place for the mobile generation. MeetMe is a leader in mobile monetization with a diverse revenue model comprising advertising, native advertising, virtual currency, and subscription. MeetMe apps are available on iPhone, iPad, and Android in multiple languages, including English, Spanish, Portuguese, French, Italian, German, Chinese (Traditional and Simplified), Russian, Japanese, Dutch, Turkish and Korean. For more information, please visit meetmecorp.com.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated amount and timing of share repurchases, whether any such repurchases will occur, whether shares will be repurchased in the open market or through negotiated transactions, whether we will continue to generate significant free cash flow, whether our business model will continue to be successful, whether the repurchase of shares will be an efficient use of capital and enhance shareholder value, whether the share repurchase program will continue to be supported by our growing scale and increased profitability, whether the strength of our balance sheet will give us flexibility to execute the share repurchase program and the Skout, Inc. acquisition, and whether repurchases will comply with Securities and Exchange Commission Rule 10b-18. All statements other than statements of historical facts contained herein are forward-looking statements. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “project,” “is likely,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the risk that our applications will not function easily or otherwise as anticipated, the risk that we will not launch additional features and upgrades as anticipated, the risk that unanticipated events affect the functionality of our applications with popular mobile operating systems, any changes in such operating systems that degrade our mobile applications’ functionality and other unexpected issues which could adversely affect usage on mobile devices. Further information on our risk factors is contained in our filings with the Securities and Exchange Commission (“SEC”), including the Form 10-K for the year ended December 31, 2015 and the Form 10-Q for the quarter ended June 30, 2016. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
http://finance.yahoo.com/news/meetme-announces-15-million-share-130000293.html
Thanks for the two posts.
Do you have a link to that "potential" loss of advertising from Coca Cola?
Social Media Stocks Hedge Funds Like
Published on September 3, 2016 at 3:32 pm by Gene Guzun in Hedge
Indeed, the world of media has been changing at an extremely high pace in recent years and decades. For instance, spending on media continues to transition from traditional to digital products and services. In fact, analysts and economists anticipate digital spending to account for more than 50% of overall media spend by 2019.
A Message from Capella University
The Future of IT Is Here
Stay ahead of the curve and hear what industry experts have to say about the top IT jobs of the future.
The rapid digital shift, fueled by the growing number of connected consumers and the expansion of mobile telephony, will continue to have a structural effect on almost all media sub-sectors. Hence, media companies need to answer the following question in order to successfully navigate today’s fast-changing landscape: How can we advance through all the noise and attract or retain consumer attention? Given today’s high uncertainty within the media space, investors might find it extremely troublesome to select the appropriate social media stocks for their portfolios. For that reason, Insider Monkey decided to compile a list of social media stocks favored by the hedge funds followed by our team. So let’s have a look at the five most popular social media stocks among the extensive pool of hedge funds tracked by Insider Monkey.
Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see more details here).
#5. MeetMe Inc. (NASDAQ:MEET)
– Number of Hedge Fund Shareholders (as of June 30): 14
– Total Value of Hedge Funds’ Holdings (as of June 30): $27.73 Million
MeetMe Inc. (NASDAQ:MEET) was a hedge fund “darling” in the second quarter, as the number of funds from our system with long positions in the company spiked to 14 from eight quarter-over-quarter. Similarly, the overall value of those positions rose by an impressive 80% quarter-on-quarter to $27.73 million, primarily due to an almost 88% increase in the value of MeetMe shares. The shares of the location-based social network for meeting new people are up 64% thus far in 2016 despite experiencing a major pullback in mid-August. Just recently, analysts at JMP Securities reiterated their ‘Market Outperform’ rating on the dating site company and the price target of $9, saying that “the recent sell-off in MEET shares is unjustified and we recommend taking advantage of shares at these levels.” Several reports recently criticized the company’s ad model and the activity of MeetMe users, putting strong downward pressure on MeetMe shares. Jim Simons’ Renaissance Technologies LLC upped its position in MeetMe Inc. (NASDAQ:MEET) by 68% during the June quarter to around 762,000 shares.
http://www.insidermonkey.com/blog/social-media-stocks-hedge-funds-like-472198/
Here is a list of three best Internet stocks for momentum investors right now:
MeetMe, Inc. owns and operates a social network. It enables users to meet new people through social games and apps, monetized by both advertising and virtual currency. The current-year earnings per share (EPS) estimate has been revised upward to 34 cents from 31 cents over the past 30 days. The EPS growth estimate is a whopping 300% for the current year, compared with the industry average of 21.8%. The company gained a hefty 216.5% in the last one year and has a Zacks Rank # 2 (Buy) coupled with a Momentum Style Score of A.
http://finance.yahoo.com/news/3-internet-stocks-momentum-investors-201108904.html
Synergy Pharmaceuticals Reports Second Quarter 2016 Financial Results and Business Update
[Business Wire]
August 8, 2016
NEW YORK--(BUSINESS WIRE)--
Synergy Pharmaceuticals Inc. (SGYP), a biopharmaceutical company focused on the development and commercialization of novel gastrointestinal (GI) therapies, today reported its financial results and business update for the three months ended June 30, 2016.
“Our exciting transformation from a purely research and development company into a fully integrated commercial organization continues unabated as we successfully advance and execute against our key strategic priorities,” said Gary S. Jacob, Chairman and Chief Executive Officer of Synergy Pharmaceuticals Inc. “These priorities are guided by our overarching mission to optimize the value of plecanatide and maximize shareholder value.”
“The rest of 2016 promises to be an exciting time as we expect top-line results in our two phase 3 IBS-C trials with plecanatide. We are especially pleased with our ongoing dialogue with the FDA, including the results of our recent mid-cycle review meeting. Building the right commercial strategy and having the ability to successfully execute on the launch plan requires a strong team and we are fortunate to be attracting talented leaders with relevant experience from across our industry. I am very proud of the Synergy organization which is committed to a successful launch of plecanatide and bringing this important new treatment option to patients suffering from CIC and IBS-C,” added Dr. Jacob.
Second Quarter 2016 and Recent Highlights
Research & Development
Plecanatide CIC Development Update
The Food and Drug Administration (FDA) has completed its mid-cycle review meeting of the plecanatide new drug application (NDA) in chronic idiopathic constipation (CIC). To date, no significant issues have been identified. Additionally, the FDA informed us that at this time there are no plans for an advisory committee meeting in connection with its review of the plecanatide NDA in CIC. The plecanatide NDA in CIC is supported by two double-blind placebo-controlled phase 3 trials and one open-label long term safety study. Over 3,500 patients were exposed to plecanatide in the CIC clinical development program. The Prescription Drug User Fee Act (PDUFA) target action date is January 29, 2017.
In May 2016, we presented additional plecanatide data, including one oral presentation and five posters, at Digestive Disease Week (DDW) 2016. Data presented at DDW showed that plecanatide met the primary and secondary endpoints in two phase 3 CIC clinical trials. In both trials, plecanatide significantly improved durable overall complete spontaneous bowel movement (CSBM) responder rates relative to placebo (primary endpoint). Plecanatide-treated patients also showed immediate and sustained improvements that were statistically significant in CSBM and SBM frequency and stool consistency scores compared to placebo. Furthermore, plecanatide showed statistically significant improvement in abdominal symptoms, such as straining and bloating, as well as constipation severity and treatment satisfaction scores compared to placebo. Most adverse events were mild to moderate in severity; the most common adverse event was diarrhea (<6.0% diarrhea rates in both trials). In addition to the plecanatide CIC clinical data, we presented new in vitro data showing that the pH-dependent activity of plecanatide replicates that of the body's naturally occurring GI peptide, uroguanylin.
Plecanatide IBS-C Development Update
We have completed over 95% of planned patient enrollment in our two phase 3 irritable bowel syndrome with constipation (IBS-C) clinical trials with plecanatide and we expect top-line data in both trials in the fourth quarter of this year. The two double-blind placebo-controlled trials are designed to enroll a total of approximately 2,100 IBS-C patients. The primary endpoint being evaluated in these trials is the percentage of patients who are Overall Responders during the 12-week treatment period. An Overall Responder, as defined by the FDA, is a patient who is a weekly responder (i.e. meets both a 30% abdominal pain intensity reduction and stool frequency increase criteria in the same week) for at least 6 of the 12 treatment weeks. Plecanatide previously met this endpoint in a phase 2b trial with 424 IBS-C patients that was completed in 2014.
Dolcanatide UC Development Update
Earlier this year, we announced positive proof-of-concept in a phase 1b double-blind placebo-controlled four-week trial evaluating dolcanatide treatment in 28 patients with mild-to-moderate ulcerative colitis. We intend to announce next steps for the dolcanatide phase 2 clinical program in patients with mild-to-moderate ulcerative colitis following agreement on the development plans with regulators.
Commercial Planning & Launch Preparation
Our commercial, medical affairs and technical operations teams are continuing to execute on our key strategic imperatives to ensure launch readiness, including the following major initiatives:
Product Readiness
Ensuring a robust supply chain process for launch and throughout plecanatide's life-cycle
Building sufficient trade and sample stock for launch in early 2017
Implementing our 3PL distribution network
Developing and implementing strong Quality Management Systems
Market/Brand Readiness
Driving and raising awareness of Synergy Pharmaceuticals, the unmet medical needs, and burden of disease
Initiating KOL engagement & speakers bureau preparation plans
Defining our pricing and reimbursement strategy, as well as initiating field payer activities
Developing the plecanatide branding, positioning, messaging and creative launch campaign based on customer insights & segmentation
Organizational Readiness
Hiring and onboarding key talent to support critical functions
Onboarding and fielding our Market Access and Medical Liaison Teams
Ensuring our IT and Compliance systems needs are defined and implemented
Continuing to evaluate all potential sales force options, including a hybrid infrastructure supplemented by a contract sales organization and/or co-promotion partner
Financial Results
As of June 30, 2016, we had approximately $141.2 million of cash and cash equivalents on hand as compared to approximately $111.8 million cash and cash equivalents and available for sale securities as of December 31, 2015.
Net cash used in operating activities was $60.1 million in the six months ended June 30, 2016, as compared to $49 million in the six months ended June 30, 2015.
Research and development expenses in the second quarter of 2016 were approximately $26.6 million, as compared to $19.5 million in the second quarter of 2015. These increased expenses were primarily a result of higher spending on IBS-C studies, the filing of our CIC NDA in January 2016, and plecanatide API contract manufacturing costs for validation batches prepared for our anticipated commercial launch next year.
Selling, general and administrative expenses were approximately $10.2 million in the second quarter of 2016, as compared to approximately $7.4 million in the second quarter of 2015. These increased expenses were primarily a result of higher spending in preparation for our anticipated commercial launch next year.
On May 6, 2016, we closed on a registered direct offering of approximately 30 million shares of our common stock with gross proceeds of approximately $89.8 million.
As of June 30, 2016, the principal balance of our 7.50% Convertible Senior Notes (“Notes”) due 2019 was $79.2 million as compared to $159.0 million at December 31, 2015.
We had 179.8 million and 113.7 million common shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively, which reflects primarily an increase in the issuance of shares from the first quarter conversions of the Notes and the common stock offering noted above.
Net loss in the second quarter of 2016 was $38.6 million, as compared to a net loss of $33.7 million incurred in the second quarter of 2015.
About Synergy Pharmaceuticals Inc.
Synergy is a biopharmaceutical company focused on the development and commercialization of novel gastrointestinal (GI) therapies. The company has pioneered discovery, research and development efforts on analogs of uroguanylin, a naturally occurring human GI peptide, for the treatment of functional GI disorders and inflammatory bowel disease. Synergy is developing and retains 100% worldwide rights to its proprietary uroguanylin analog technology platform that includes two lead product candidates - plecanatide and dolcanatide. Plecanatide is Synergy's first uroguanylin analog currently being evaluated for use as a once-daily tablet for the treatment of CIC and IBS-C. Dolcanatide is Synergy's second uroguanylin analog currently being explored for ulcerative colitis. For more information, please visit www.synergypharma.com.
Forward-Looking Statements
Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward- looking words such as "anticipate," "planned," "believe," "forecast," "estimated," "expected," and "intend," among others. These forward-looking statements are based on Synergy's current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, substantial competition; our ability to continue as a going concern; our need for additional financing; uncertainties of patent protection and litigation; uncertainties of government or third party payer reimbursement; limited sales and marketing efforts and dependence upon third parties; and risks related to failure to obtain FDA clearances or approvals and noncompliance with FDA regulations. As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. There are no guarantees that future clinical trials discussed in this press release will be completed or successful or that any product will receive regulatory approval for any indication or prove to be commercially successful. Investors should read the risk factors set forth in Synergy's Annual Report on Form 10-K for the year ended December 31, 2015 and other periodic reports filed with the Securities and Exchange Commission. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Forward-looking statements included herein are made as of the date hereof, and Synergy does not undertake any obligation to update publicly such statements to reflect subsequent events or circumstances.
Synergy Pharmaceuticals: Attractive Acquisition Target
Jul. 28, 2016 9:05 AM ET|
About: Synergy Pharmaceuticals, Inc. (SGYP), Includes: AGN, IRWD
Synergy is on track to get plecanatide approved in January 2017.
Plecanatide's significant market potential makes the company an attractive takeover target.
Synergy has made some unfortunate financial decisions over the last few months.
The company will likely have to partner plecanatide or face more dilution in order to fund the product's commercialization.
Synergy Pharmaceuticals (NASDAQ:SGYP) has made some progress since my initiation article, but the company also had some missteps along the way. The biotech bear market has negatively affected Synergy's share price and the company made some unfortunate financial decisions this year, along with CFO leaving the company. Putting aside those missteps, things are heading in the right direction. Plecanatide is on its way to receiving FDA approval for its first indication and the rest of the pipeline is also progressing nicely. The cash on hand is not enough for the company to finance the commercialization of plecanatide on its own and Synergy will either be forced to further dilute the shareholder base, raise debt or find a partner. I still believe that the upside potential is significant based on plecanatide's clinical profile and think that Synergy is an attractive takeover target. I am reiterating my bullish view, but reducing my price target based on the higher share count and the prospects of increased dilution.
Financing troubles
Financial stewardship of the company in 2016 was not that great. In late April, Synergy announced that CFO Gary L. Sender has resigned for personal reasons effective April 30, 2016. Bernard F. Denoyer, who served as SVP of Finance and Secretary since 2008, took over the role. Perhaps Mr. Sender did not want to do the unfavorable offering which was done just a few days after he left - on May 5, Synergy announced a direct offering of 30 million shares at $3 per share. The alternative view is that Mr. Sender did a poor job, thereby forcing the company to raise capital at bear market lows.
I guess that management was a bit shortsighted last year and did not take advantage to raise capital when the stock was in high single-digits. They watched the subsequent implosion and did the offering at a 70% discount to last year's highs and near bear market lows (which was around $2.50). The offering was not well received initially and Synergy tested the late March lows, but the stock quickly recovered and now sits around $4 per share.
Source: Stockcharts.com
However, the capital raised will not be enough for the commercialization of plecanatide and for further pipeline development. Synergy is burning roughly $25 million a quarter, and this is without the significant commercial ramp, and I think the burn rate will be at least $40 million and probably closer to, or above $50 million in Q1 2017 and beyond. The cash on hand (around $160 million at the end of Q1 if we include the raised funds) will not cover those expenses and the company will probably need to do another dilutive offering later this year or do a debt raise, and I doubt that the terms will be favorable.
I suspect that the company will need at least $100 million in additional funding in the next 6-12 months and most likely closer to $200 million to get to reach a cash flow positive status, which translates to 11%-12% dilution (or 20% to 25%) based on the prevailing market price. The third option is to partner plecanatide, which would alleviate the short-term funding concerns and transfer the commercial risks to the partner, but by doing this, the company stands to lose a significant portion of future profits.
The market for plecanatide is growing
Putting aside the financial troubles, which I think are manageable, plecanatide's upside potential is significant enough to lead to substantial upside in the following years. I wrote about plecanatide's clinical profile last year, but it is worth repeating that:
Synergy reported positive top line results from its first phase 3 trial in patients with chronic idiopathic constipation or CIC. The occurrence of diarrhea was 5.9% for the 3.0mg dose and 5.5% for the 6.0mg dose, which compares favorably to 16% for the current market leader Linzess.
Plecanatide is a naturally occurring human peptide and is physiologically controlled while Linzess is a truncated version of the toxin that causes traveler's diarrhea.
Based on its clinical profile, plecanatide has the potential to be the best-in-class product and to eventually surpass the sales of Linzess.
The FDA accepted Synergy's NDA for plecanatide on April 19 and the PDUFA target action date is January 29, 2017. If approved, Synergy intends to launch plecanatide during Q1 2017.
And while we are waiting for the PDUFA date and the eventual launch in CIC, Linzess continues to expand the CIC and IBS-C market. Linzess U.S. net sales rose 44% Y/Y to $137 million in Q1 (after a 53% Y/Y increase to $455 million in 2015) and Ironwood (NASDAQ:IRWD) expects annual sales to reach $1 billion by 2020. Considering the annualized net sales run rate of over $500 million and the strong growth rate, I would not be surprised to see sales above $1 billion before 2020. It is also worth noting that Linzess' success has done little to undermine Amitiza, which grew prescriptions by 5% Y/Y in Q1 2016 with Takeda (OTCPK:TKPYY) reporting $91.7 million in net sales.
Linzess is the most significant competitive threat to plecanatide. Ironwood and Allergan (NYSE:AGN) are on track to launch a 72mcg dose in early 2017 (if approved). Lower dosing should reduce the diarrhea rates, which is the most common adverse effect and one of the most important advantages of plecanatide. Ironwood reported that rates of diarrhea with the 72mcg dose were lower than the 145mcg dose in the trial, but when asked about the actual diarrhea rates in the trial on the Q3 2015 call, Ironwood said that "with the emerging competition in the market, we've made a strategic decision not to unveil that until we're ready to come to market." This is speculation on my part, but I think that the rates of diarrhea are not competitive to those of plecanatide - I would not have withheld the data if they were better than plecanatide's. But overall, the 72mcg dose should increase Linzess' uptake in 2017 and beyond and will certainly make the product more competitive. Allergan is also investing significant funds in the DTC campaign, which is positive on the awareness side and should help expand the patient pool. However, Synergy will likely find it hard to compete and I doubt that the company will do a DTC campaign of its own, especially considering its tough financial position.
Dolcanatide's potential in opioid-induced constipation and ulcerative colitis
Dolcanatide is Synergy's second pipeline candidate. In November 2014, the company announced positive top line results from a phase 2 trial in patients with opioid-induced constipation or OIC. Dolcanatide met the primary endpoint and demonstrated statistically significant improvement in the number of spontaneous bowel movement during week 4 of treatment.
In January 2016, the company announced positive phase 1b data in patients with mild-to-moderate ulcerative colitis. Analysis of the data showed clear signals of improvement in dolcanatide patients versus placebo, and dolcanatide was safe and well-tolerated. The company is evaluating the best ways to proceed with this indication. It is interesting, though, that the company's annual report states (emphasis mine) that "we will continue to monitor the OIC market opportunity but we currently have no plans to continue dolcanatide development in OIC."
This is a bit surprising considering the positive trial results, but not as much if we consider the overall lack of capital. I am not expecting much from dolcanatide in the near term and consider it as a relatively cheap call option.
Upside potential dwarfs the mistakes
My price target on Synergy last year was $16 and was based on 2x peak sales of $1.5 billion, which was the middle of the $1 billion to $2 billion peak sales range. I am updating my valuation model below with the same range, adjusted expectations and an increased share count. The share count takes into account the rest of the convertible notes (around 25 million shares).
Low estimate Mid-range High estimate
Plecanatide peak sales 1000 1500 2000
Net Income 300 488 700
Multiple 15 15 15
Probability of approval 80% 80% 80%
Future value 3,600 5,850 8,400
Shares outstanding 220 220 220
Future EPS 1.36 2.22 3.18
Discount factor 0.43 0.43 0.43
Present value 1,556 2,529 3,632
Present value per share 7.07 11.50 16.51
Source: author's calculations
Plecanatide is conservatively worth $7 per share. I assume a combined 80% probability of approval for both indications and getting the product approved would increase the conservative value to around $10 per share.
My new price target on Synergy is $11.5 and is based on the middle of the valuation range. Plecanatide's approval in both indications would lift its NPV to $14.5 per share. Analyst price targets are in the $4 to $15 range with a mean target of $9.90.
This is the valuation for Synergy as a standalone company and I still think that the company is a very attractive takeover target and I think a price tag should be somewhat higher in such a case, especially if plecanatide is approved in early 2017 and if we include dolcanatide's potential in ulcerative colitis and OIC (but dolcanatide is not worth more than $2-3 per share right now). Ironwood's management said on its latest call that the Linzess franchise has the potential to generate $2 billion in peak sales (together with the colonic release candidate) and a potential best-in-class product like plecanatide might generate even more, especially in the hands of a larger pharma company. I would be disappointed with anything below $3 billion (or around $15 per share) in such a case. However, Synergy would need to get its share price significantly higher before accepting any offers, as I doubt that a buyer would be willing to pay a 200% or 300% premium.
Conclusion
Synergy's current valuation does not reflect plecanatide's growth potential. The company has been punished more than other stocks in the sector, considering its 60% haircut (or 75% if we take the late March lows) and the risk/reward is skewed to the long side.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: This article reflects the author's personal opinion and should not be regarded as a buy or sell recommendation or investment advice in any way.
http://seekingalpha.com/article/3992577-synergy-pharmaceuticals-attractive-acquisition-target
Investors Scour Big Pharma M&A Scene for Next Big Takeover
By
James Passeri
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| Jul 21, 2016 | 2:58 PM EDT
...Meanwhile, shares of Synergy Pharmaceuticals (SGYP) -- a popular takeover prospect last fall -- jumped about 5% as it appears more likely that suitors will come knocking to obtain the drugmaker, especially as its chief product, gastrointestinal therapy plecanatide, continues to strive for FDA approval as it prepares to release Phase III trial data.
Real Money Pro's Bret Jensen -- who recommended buying Relypsa stock in April, calling it "insanely low-priced given its fundamentals" -- said in a phone interview Thursday that the Relypsa takeover may not be large enough to set off a significant takeover wave among large-cap companies, but noted, "I do think you're going to see some smaller deals," and that "Synergy would be one of those names right up that alley."
Synergy Pharmaceuticals Inc (NASDAQ:SGYP)
This one’s a bit counter intuitive. Synergy Pharmaceuticals Inc (NASDAQ:SGYP) announced on Friday that it had reached an FDA mid cycle review milestone. When a company submits a new drug application, the FDA will generally set up a couple of review period milestones, designed to improve communication between the agency and the company seeking approval. As these milestones are reached, it’s sort of hurdle clearing, and means the drug under review is a step closer to commercialization. As a general rule, therefore, when the review clears one of these milestones, a company will pick up a bit of strength on the back of the announcement. Not so in this instance, however.
Synergy Pharmaceuticals Inc (NASDAQ:SGYP) kicked off Friday’s session at $3.83 a share. By session close, the company traded for $3.61 – a 5.74% decline throughout the day. After hours, the company’s market capitalization slipped further, and will now open the week at $3.55, or a market capitalization for $648 million. So why the decline? Well, we also saw a bit of data released concerning the company’s ongoing irritable bowel syndrome with constipation (IBS-C) program. The program has been plagued with enrollment issues, and as such, there is going to be a slight delay on topline release from two phase IIIs. The data is now expected during the fourth quarter of this year, with a view to submitting an NDA to the FDA in this indication at some point during the first quarter of next year.
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It’s reasonable to assume that the decline came on the back of disappointment over the delays, as markets were hoping for an NDA at some point this year – something that there is now pretty much no chance of happening.
It’s not all bad, however, so there may be something of an opportunity in the decline. With a drug progressing nicely through the review process in one indication, and the same drug in two pivotals with a view to NDA submission within the next eight or so months, there’s plenty of room for a recover medium term. The Friday decline might be a good reason to get in, serving up a discount entry on market sentiment induced volatility.
One to watch, and of the two stocks discussed, very much the frontrunner from a risk profile perspective.
That sounds reasonable, thanks.
Synergy Pharmaceuticals
On Friday, Synergy Pharmaceuticals Inc. (NASDAQ: SGYP) had somewhat of a hiccup, but this was precipitated by a slow drop over the course of the week. The long and short of the matter is that the company has been in an open discussion with the FDA regarding the new drug application (NDA) for its chronic idiopathic constipation treatment, as well as for its irritable bowel syndrome with constipation (IBS-C) program.
In its update, Synergy decided to continue patient enrollment for its two ongoing Phase 3 clinical trials with plecanatide in IBS-C. The decision to continue enrollment comes after trial monitoring demonstrated a slower enrollment pace combined with an increase in the number of patients not meeting randomization criteria after the screening period prior to starting treatment.
Over the past week, the stock retreated 12%. Shares closed Friday at $3.61. The consensus price target is $9.90, and the 52-week range is $2.50 to $9.76.
By Chris Lange
http://247wallst.com/investing/2016/07/17/4-companies-that-destroyed-shareholders-last-week-5/
Synergy Pharmaceuticals Sinks on FDA Update
By Chris Lange July 16, 2016 9:20 am EDT
Synergy Pharmaceuticals Inc. (NASDAQ: SGYP) stumbled on Friday, and over the course of the week for that matter, despite a strong upward push in the broad markets. The company has been in an open discussion with the U.S. Food and Drug Administration (FDA) regarding the new drug application (NDA) for its chronic idiopathic constipation (CIC) treatment, as well as for its irritable bowel syndrome with constipation (IBS-C) program. However, the investor reaction was not as positive as the company would have hoped.
Specifically, the company announced that it has reached the FDA mid-cycle review milestone for the plecanatide NDA in CIC. Additionally, the company provided an update on its ongoing IBS-C program.
So far, management has been pleased with the progress and it remains optimistic about the potential approval of plecanatide in CIC by the Prescription Drug User Fee Act (PDUFA) date of January 29, 2017.
Previously, Synergy announced positive phase 3 data with plecanatide in two pivotal CIC clinical trials, and on January 29, 2016, the company submitted its first NDA for plecanatide in CIC. If approved, Synergy plans to launch plecanatide with the CIC indication in the first quarter of 2017.
In the update, Synergy decided to continue patient enrollment for its two ongoing Phase 3 clinical trials with plecanatide in IBS-C. The decision to continue enrollment comes after trial monitoring demonstrated a slower enrollment pace combined with an increase in the number of patients not meeting randomization criteria after the screening period prior to starting treatment.
Gary S. Jacob, chairman and CEO of Synergy Pharmaceuticals, commented:
Our first priority is to ensure high quality trials that reflect our rigorous standards and expectations. To that end, we are updating our timing for top-line data in both trials to the fourth quarter of this year and intend to file the plecanatide NDA in IBS-C in the first quarter of 2017. We remain confident that plecanatide will continue to deliver outstanding clinical results consistent with previous trials, ultimately providing an important treatment option for patients suffering from IBS-C.
Excluding Friday’s move, Synergy has vastly underperformed the broad markets, with the stock down about 32% year to date. Over the past 52 weeks, the stock is down over 55%.
Shares of Synergy Pharmaceuticals closed trading down less than 6% at $3.61 on Friday, with a consensus analyst price target of $9.90 and a 52-week trading range of $2.50 to $9.7
Read more: Synergy Pharmaceuticals Sinks on FDA Update (NASDAQ: SGYP) - 24/7 Wall St. http://247wallst.com/healthcare-business/2016/07/16/synergy-pharmaceuticals-sinks-on-fda-update/#ixzz4EaNCLEYy
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Synergy Pharmaceuticals Inc (NASDAQ:SGYP) shares have retreated by 6.7% in morning trading after the biotech issued an update on the ongoing FDA review of the company’s lead product candidate plecanatide for the potential treatment of chronic idiopathic constipation, as well as on the company’s IBS-C clinical development program.
According to CEO Gary S. Jacob, Synergy has reached the FDA mid-cycle review milestone and is optimistic about the potential approval of plecanatide for the treatment of CIC by the PDUFA date of January 29, 2017. The company has also decided to continue patient enrollment for two ongoing phase III clinical trials for plecanatide for the potential treatment of IBS-C.
Some traders could be selling due to the slower enrollment pace. Synergy remains hopeful that it will file an NDA for plecanatide for the treatment of IBS-C in the first quarter of 2017. Of the 766 active funds that we track, 21 collectively owned $73.66 million worth of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) shares on March 31, which accounted for 23.50% of the float.
Down today, probably because of this in their release:
Furthermore, the company has decided to continue patient enrollment for its two ongoing phase 3 clinical trials with plecanatide in IBS-C. The decision to continue enrollment comes after trial monitoring demonstrated a slower enrollment pace combined with an increase in the number of patients not meeting randomization criteria after the screening period prior to starting treatment.
“Our first priority is to ensure high quality trials that reflect our rigorous standards and expectations," said Dr. Jacob, "To that end, we are updating our timing for top-line data in both trials to the fourth quarter of this year and intend to file the plecanatide NDA in IBS-C in the first quarter of 2017. We remain confident that plecanatide will continue to deliver outstanding clinical results consistent with previous trials, ultimately providing an important treatment option for patients suffering from IBS-C.”
As oil prices go up, so will EMES. Check out below
U.S. Shale Producers Will Not Hold Down Oil Prices
Investors may fear oil prices will be bludgeoned near term if a global glut persists, but concerns over U.S. producers ability to hinder oil's recovery are unfounded, industry followers say.
Tom Terrarosa
Follow
Jul 14, 2016 1:28 PM EDT
Following a week full of potentially disheartening U.S. oil statistics, crude futures were well into the green Thursday afternoon as the dollar eased significantly by midday.
After crashing more than 4% Wednesday, West Texas Intermediate crude contracts for August delivery were up 1.8% to $45.57 by 1 p.m. EDT Thursday, while global benchmark Brent crude futures for September were up 2% to $47.20.
And the markets were gaining with crude Thursday as the Dow Jones Industrial Average was up 0.68% at 1 EDT, the S&P 500 climbed 0.45% and the Nasdaq rose 0.51%.
Everything you want to know about EMES (and HCLP) both sand producers
Check it out.
http://marketrealist.com/2016/07/surge-hclp-emes-2016-indicates/comments
As oil goes up in price so will EMES.
Drop in Crude Oil Inventories Boosts Oil Prices. Good for sand producers like EMES (Above sentence is from me)
US Crude Oil Inventories Fall Again: How Is Crude Oil Reacting?
By Sarah Sands | Jul 4, 2016 11:54 am EDT
US crude oil inventories fell by 4.1 million barrels
According to the U.S. Energy Information Administration’s report on June 29, 2016, US (QQQ) (IWM) crude oil inventories fell by 4.1 MMbbls (million barrels) in the week ended June 24, 2016, compared to a fall of 0.92 MMbbls in the previous week. The Market expected a fall of 2.3 MMbbls. The fall beat market expectations, declining for the sixth consecutive week.
The United States Oil ETF (USO) rose by 2.8%, and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) rose by 5.3% on June 29, 2016. The higher-than-expected fall in crude oil inventories drove crude oil’s movement on the day.
US Crude Oil Inventories Fall Again: How Is Crude Oil Reacting?
Crude oil inventories fall for the sixth consecutive week
In the last six consecutive weeks, crude oil inventories have shown downward movement. Crude oil’s price has shown a strong rally since February 12, 2016. On February 11, 2016, crude oil (UWTI) (BNO) touched a multiyear low of $26.11 per barrel. Global markets (VTI) (VEU) (ACWI) also recovered from their respective lows on February 11, 2016. The Federal Reserve’s dovish stance was mainly responsible for these market movements.
The fall in crude oil inventories is a welcome sign for crude oil, erasing the fear of a global supply glut. Demand for crude oil is expected to rise in the near future, further driving crude oil’s movements.
Higher crude oil prices will benefit crude oil producers. You can read Drop in Crude Oil Inventories Boosts Oil Prices to know more.
In the next part of this series, we’ll analyze the performance of the US GDP for 1Q16.
In after hours announcement on EMES This was the key paragraph
Emerge Energy Services (NYSE:EMES) +9.9% AH after agreeing to sell its fuels distribution business to Sunoco (NYSE:SUN) for $178.5M.
EMES says the sale will drive substantial debt reduction and simplification of its operating platform, allowing it to become a pure-play business with all of its assets and operations focused on its frac sand segment.
Q1 results released. Loss per share 1.42. Consensus was-.59 revenue came in at 29.7 M. Consesus est was 122M. .. they have basically shuttered their fuel business and put it up for sale which means their business in almost sand based for fracking which is shrinking at a fast clip due to oil price. The sand segment lost 13.5 mil in Q 1 and earned over 24m same q in 2015. The US rig count continues to fall 354 in April to 328 May 6th.
Emerge Energy Services LP Announces Agreement to Divest Fuels Business in Deal Valued at Approximately $179 million
Emerge Energy Services LP 15 minutes ago GlobeNewswire
Transaction Would Drive Substantial Debt Reduction and Simplification of Emerge`s Operating Platform
Southlake, Texas (June 23, 2016) - Emerge Energy Services LP ("Emerge" or "the Company") (EMES) is pleased to announce that it has entered into a definitive agreement for the sale of Emerge`s fuels business (the "Fuels Business") to Sunoco LP ("Sunoco") (SUN), a publicly traded master limited partnership engaged in the wholesale distribution and retail sale of motor fuels. The Fuels Business is comprised of Dallas-based Direct Fuels LLC and Birmingham-based Allied Energy Company LLC, both wholly owned subsidiaries of Emerge, and engages primarily in the processing of transmix and the distribution of refined fuels.
The aggregate purchase price is $178.5 million, subject to working capital adjustments, and the transaction will be completed on a cash-free, debt-free basis. As stated previously, Emerge intends to apply the proceeds, net of transaction related expenses, to reduce its outstanding debt.
Following the sale, Emerge will become a pure-play business with all of its assets and operations focused on its Sand segment, which is engaged in the businesses of mining, processing and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells.
Ted W. Beneski, Chairman of the Board of Emerge, commented, "This agreement with Sunoco is the result of a thorough process undertaken to maximize value for unitholders. We are pleased with the results of this process and could not be happier to be partnering on this transaction with Sunoco, a top operator with a stellar reputation in the marketplace. The Fuels Business will be in good hands."
With respect to Emerge`s use of proceeds, Mr. Beneski continued, "As we have stated on previous earnings calls, we undertook the sale of the Fuels Business to generate proceeds to pay down Emerge`s debt. I am encouraged to say that the cash proceeds from this transaction will allow Emerge to substantially reduce its overall debt levels, and will better position the company to opportunistically execute on strategic initiatives and create long term value as the industry looks to exit the current prolonged downturn."
Read this and take another look at EMES. More sand will be needed. See my Bold
U.S. shale oil's Achilles heel shows signs of mending
By Ernest Scheyder and Terry Wade
HOUSTON (Reuters) - Since the beginning of the U.S. fracking revolution, oil producers have struggled with a vexing problem: after an initial burst, crude output from new shale wells falls much faster than from conventional wells.
However, those well decline rates have been slowing across the United States over the past few years, according to data analysis provided exclusively to Reuters.
The trend, if sustained, would help ameliorate the industry’s most glaring weakness and cement its importance for worldwide production in years to come. It also helps explain shale drillers' resilience throughout the oil market's two-year slump.
While shale oil production revolutionized the oil industry over the past decade, bringing abundance of global oil supplies, high costs and rapid production declines have been its Achilles heel. That is beginning to change thanks to technological innovation and producers' focusing less on maximizing output and more on improving efficiency and productivity.
According to data compiled and analyzed by oilfield analytics firm NavPort for Reuters, output from the average new well in the Permian Basin of West Texas, the top U.S. oilfield, declined 18 percent from peak production through the fourth month of its life in 2015. That is much slower than the 31 percent drop seen for the same time frame in 2012 and the 28 percent decline in 2013, when the oil price crash started.
The change was even more dramatic in North Dakota's Bakken shale, where four-month decline rates for new wells fell to 16 percent in 2015 from almost 31 percent in 2012. (Graphic:http://tmsnrt.rs/292ScGY)
A slower decline means producers need to drill fewer new wells to sustain output, said Mukul Sharma, professor of petroleum engineering at the University of Texas at Austin.
"You can have cash flow without having to expend a lot of capital."
The recent decline rates mark a dramatic improvement from first-year 90 percent declines in the early years of the shale boom that made some investors question the sector's long-run viability.
NEW PHILOSOPHY
There are no 2016 figures yet, but oil executives expect the trend to continue this year and beyond.
Scott Sheffield, chief executive of Pioneer Natural Resources Co <PXD.N>, a top Permian producer, credited improved fracking techniques for helping stabilize production, which shareholders rewarded by lifting Pioneer's shares up about 9 percent over the past year.
"We're exposing more of the reservoir and breaking it up so we don't get as sharp a decline," Sheffield told a recent energy conference.
Slower declines also reflect producers' more conservative approach to operating wells. In the early years of the hydraulic fracturing boom, high crude prices encouraged operators to boost initial production as much as possible.
To do this, they would let wells flow fast by keeping pressure low on the ground's surface. About seven years ago, however, some shale operators in Louisiana found this ultimately hurt production later on by causing rock fractures to shut.
Now, many operators maintain surface pressures higher, which limits initial flow rates and slows a well's decline rate.
"Conventional wisdom has shifted," said John Lee, a professor of petroleum engineering at Texas A&M University.
Sharma of the University of Texas said that while shale well decline rates remained far above a 10 percent first-year decline a conventional well might experience, they marked a radical improvement compared with early years of hydraulic fracturing.
Harold Hamm's Continental Resources Inc <CLR.N>, for example, has told investors its new wells in Oklahoma's SCOOP region are now producing 40 percent more oil six months into their lives than as recently as last year.
Today's production techniques use larger volumes of sand and pressurized fluids to frack more spots along longer well bores, to extract more oil from the wells. (Graphic: http://tmsnrt.rs/296vBtQ)
Pioneer fracks its wells every 15 feet today compared to every 60 feet in 2013. It costs extra $500,000 per well to do so, but its wells produce two-thirds more oil than just three years ago, boosting profitability, Pioneer said.
To be sure, not all producers are seeing slower decline rates and the newer, more stable shale wells make up only a fraction of all producing U.S. oil wells, so their impact on overall domestic output is for now limited.
The Eagle Ford shale in southern Texas has seen decline rates slightly increase, for example, according to NavPort data.
(Reporting by Ernest Scheyder and Terry Wade; Editing by Tomasz Janowski)
Frack Sand Stocks Saw a 2nd Straight Month of Large Gains in June (EMES, FMSA, HCLP, SLCA)
Higher oil and gas prices in June helped propel shares of Emerge Energy Services, Fairmount Santrol Holdings, Hi-Crush Partners, and U.S. Silica Holdings for the second straight month.
Sparta
Image source: U.S. Silica Holdings.
What: After posting large gains in May, frack sand producers followed up in June by avoiding the fallout of the Brexit vote to post large gains. All four of the nation's largest publicly traded producers -- U.S. Silica Holdings (NYSE:SLCA), Fairmount Santrol Holdings (NYSE:FMSA), Hi-Crush Partners (NYSE:HCLP), and Emerge Energy Services (NYSE:EMES) -- gained more than 20%, with Emerge leading the way with a 128% gain.
So What: The big outlier here is Emerge Energy Services. The reason this company saw such large gains this month is that it announced it would be selling its fuels business segment to retail and marketing specialist Sunoco LP. The $179 million deal will allow Emerge to focus exclusively on its frack sand production. Considering how different the two business segments were, it seemed almost inevitable that the company would shed these assets eventually. The proceeds will be used to clean up the company's balance sheet and help fill some of the funding gaps that have come about because of the massive downturn in oil and gas drilling activity.
For the other companies here, much of the gains have to do with oil prices remaining in the range of $45 to $50 a barrel for the month. While this isn't a great price for producers, it's enough that some are starting to think about doing a little work to bring on a few new wells. Considering the large number of wells that have been drilled but not yet completed -- wells that will need frack sand -- there is a large backlog of work that these sand producers will need to fill. The question is how quickly the market will want to bring these wells on line.
This demand couldn't come at a better time, as all of these companies have struggled to make ends meet in recent quarters. Both Hi-Crush and Emerge were forced to suspend their dividends several months ago, and Hi-Crush recently completed an equity offering to raise $48.5 million. Each company has seen its balance sheet deteriorate considerably over the past 12 months. Only U.S. Silica Holdings has been able to maintain a reasonable balance sheet over that time, and a large part of that has to do with its sand sales to industries other than oil and gas.
Company
Debt to Capital
Net Debt to EBITDA
Quick Ratio
U.S. Silica
46.5%
0.43
7.47
Hi-Crush Partners
73.6%
5.71
1.6
Farimount Santrol
100%
14.5
1.41
Emerge Energy Services
79.8%
6.45
1.58
Source: S&P Global Market Intelligence.
Now What: With Hi-Crush, Emerge, and Fairmount all on the verge of insolvency, the smallest gain in oil and gas prices is going to keep sending these shares on big ups and downs, despite the two straight months of gains. Keep in mind that these companies' stocks still have a long way to go to get back to where they were when oil was at $100 a barrel.
Until we start to see some quarterly results with oil and gas prices in this range, it's probably best to take a wait-and-see approach. This is especially important for Emerge because we need to see how much of that asset sale cash goes to paying down debt. With such bloated balance sheets and questionable demand for the time being, there is just a little too much risk in these stocks to make any major purchases.
Probably right. Still, he has a lot of stocks to choose from and he mentioned SGYP
Cramer on Synergy
Cramer: If the data's good, this stock could get a takeout bid
It's that time again! Jim Cramer rang the lightning round bell, which means he gave his take on caller favorite stocks at rapid speed:
Synergy Pharmaceuticals: "I feel like if the data is good you're going to get a takeout bid. If the data is not that good I'm not sure what it's worth. We see with these things like Regulus, if they go right it's just unbelievably good. If they go bad, it's unbelievably bad. And that's why it's been so hard for me to opine on it because it seems very binary to me. And I don't like to comment on the binary. But obviously if the news is good, wow."
If it's going to be a success, you won't have to wait until January 29th. Their trials have been terrific. Look to the trials they did last month in San Diego.
If there is a buyout, I think it will happen before January 29th, because I'm pretty sure there will be those that will know before the 29th.
I think the down side risk is low and the upside reward could be huge.
I use the 10% rule. The stock is at $4.00 as we speak. If it goes down $ .40 I'm out. I wish I had had the same discipline with Wave.
JMO
Here's Why Ironwood Pharmaceuticals, Inc. Jumped 19.52% in May
A first-quarter earnings report packed with good news, and a well-received investor presentation, caused shares to move higher in May.
What: Investors in Ironwood Pharmaceuticals (NASDAQ:IRWD) had a May to smile about. A handful of positive events caused investors to cheer, sending shares up more than 19% during the month, according to data from S&P Global Market Intelligence.
So what: Here's a brief overview of what caused the company's share price to jump:
First, Ironwood released results from its first quarter during the month, and investors largely applauded the results. Net sales of Linzess -- the company's treatment for irritable bowel syndrome with constipation and chronic idiopathic constipation, which it jointly owns with Allergan PLC (NYSE:AGN) -- grew 44% to $137 million in the first quarter. That fast growth allowed Ironwood to grow its total revenue to $66 million during the period, up a huge 128% over the year-ago quarter.
The huge top-line growth allowed the company to shrink its non-GAAP (generally accepted accounting principles) net loss to only $11.7 million for the quarter, or $0.09 per share. That was a substantial improvement from the $33.2 million loss in the first quarter of 2015, and came in well ahead of the $0.16 loss that analysts were projecting.
Ironwood and Allergan continued to expect Linzess to grow fast over the coming years, forecasting that net sales are on track to exceed $1 billion by 2020. Better yet, Ironwood believes that the fast growth will allow it to become cash flow positive by 2018.
In addition, Ironwood captured investors' attention during a presentation that it gave at the 2016 UBS Global Healthcare Conference, as shares jumped in the days following the meeting.
The combination of good quarterly results mixed with the investor presentation were more than enough to allow the bulls to take over, causing shares to spike.
Now what: Ironwood has several developments in place that give it a good chance of continuing to grow its revenue quickly. Ironwood and Allergan continue to get Linzess on more insurance companies' formularies, expanding patients' access to the drug. The two companies also recently launched a direct-to-consumer campaign with the goal of increasing consumer awareness.
Ironwood and Allergan also believe that they are on track to launch a 72 mcg dose of Linzess early next year, which they believe will increase the market potential of the drug.
Ironwood is also working to get Linzess approved in markets around the world. During its report the company announced that its other marketing partners Astellas Pharma and AstraZeneca have already submitted the drug for approval in Japan and China, respectively. If that goes well it will open up brand-new markets for the drug, greatly enhancing the company's revenue growth potential.
The only potential headwind ahead for Ironwood is Synergy Pharmaceuticals (NASDAQ:SGYP). Synergy's drug plecanatide is currently pending FDA approval for treating chronic idiopathic constipation, and if it gets the green light on its January 29, 2017 PDUFA date then it might be able to steal some market share away from Ironwood and Allergan. In clinical trials patients who used Synergy's plecanatide reported lower rates of severe diarrhea than Linzess displayed in its own trial, which could give it an edge with providers. That makes Synergy a company that Ironwood's investors will want to watch closely.
To help combat that potential threat, Ironwood is already in phase 2b trials with its next-generation drug, and it has also targeted a number of other disease states with its pipeline. If any of them pan out, then the company's rapid growth rate might not be harmed by Synergy, so this might be a good stock for growth investors to consider putting on their radar.
Hope not.
AFREZZA was dead in the water before it ever hit the market.
Other major companies had an inhaler and dropped it for lack of sales before AFREZZA ever came to market. Check it out.
Better check it out. There are similar products on the market but not as good (side effects for one) as SGYPs.
Trials are terrific and there is big money behind them.
Some houses are calling for a $15.00 price tag and a very very good possibility of a buyout.
Very bad comparison. Mankind's competitors dropped the same product Mankind was working on because there was no demand.
Mankind continued through the FDA process and when they got FDA approval they found out what their competitors found out: THERE WAS NO DEMAND FOR THE PRODUCT
Hey, my average cost was $3.33 and I sold today at $4.16. This is the 4th time I have been in and out.
Looking to buy back in tomorrow under $4.00
MGT Capital Investments (MGT) Appoints Nolan Bushnell to Board
Article
June 7, 2016 9:10 AM EDT
MGT Capital Investments, Inc. (NYSE: MGT) today announces the appointment of Nolan Bushnell to its Board of Directors. Bushnell will serve as an independent director, effective immediately.
Nolan Bushnell is a technology pioneer who is best known as the founder of the Atari Corporation and Chuck E. Cheese. Bushnell has also founded more than 20 companies during his career, including Catalyst Technologies, the first technology incubator; ByVideo, the first online ordering system; Etak, the first digital navigation system; UWink, the first touchscreen menu ordering and entertainment system; and BrainRush, an educational software company.
Bushnell also served as a director on the boards of Wave Systems Corporation, a developer and distributor of hardware-based digital security products, and of AirPatrol Corporation/Sysorex (NASDAQ: SYRX), which makes indoor positioning systems. He was also on the board of directors at Neoedge Networks, a technology and in-game advertising company that enabled casual game publishers to deliver television-like commercials within their products.
John McAfee, proposed Executive Chairman and Chief Executive Officer of MGT Capital, stated, "Nolan is one of the brightest minds in cyber technology. In his career, he has founded more than 20 high tech companies, giving him unprecedented knowledge of the tech industry. As a director, he will help MGT identify and cultivate the necessary strategic partnerships to position the company as the world leader in cyber security."
"As founder of Atari, one of the first Silicon Valley mega-success stories, Nolan single handedly created the video game industry and continues to shape its future today. It is within this industry that much of the leading edge artificial intelligence techniques are being applied, and I believe artificial intelligence will shape the future of cyber security and provide the impetus for MGT's success," concluded McAfee.
Bushnell commented, "I am excited to join MGT along with John McAfee to build one of the most powerful cyber security companies in the industry and address an increasing number of cyber threats. There is an ever evolving flow of threats through the advancements of electronic devices we use every day with very little user protection. The opportunity is enormous in this market, and the existing companies in the cyber security space are too busy looking backwards in order to protect their existing market share to see what is happening in the market now. We at MGT are going to approach the market from a completely different perspective, by addressing these immediate needs as our priority."
http://www.streetinsider.com/Corporate+News/MGT+Capital+Investments+%28MGT%29+Appoints+Nolan+Bushnell+to+Board/11716050.html
Synergy Rallies on Technicals and Value
Synergy Pharmaceuticals Inc (NASDAQ:SGYP) shares have rallied by 9.11% today as traders snap up the stock in the hopes that the beaten-up biotech’s momentum will continue. Shares of the stock have surged past several moving averages and are up by more than 50% since mid-May. Synergy’s lead product candidate is plecanatide, which has a PDUFA date of January 29, 2017. Synergy Pharmaceuticals Inc (NASDAQ:SGYP) was in 21 elite funds’ portfolios at the end of March.
http://www.insidermonkey.com/blog/surging-stocks-aehr-test-systems-synergy-pharmaceuticals-great-basin-scientific-more-458373/
Synergy Pharmaceuticals (SGYP) Stock: Is It In Your Portfolio Yet?
Jun 1, 2016
0 2143
Synergy Pharmaceuticals SGYP Stock News
Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals has been an incredibly interesting stock to watch as of late and, in my opinion, it has become an incredible opportunity. While there are bears on the stock, there will always be bears on every stock and, in this case, I believe that they are sorely mistaken. The truth is that SGYP is likely to climb dramatically from here. Today, we'll talk about why...
Trade smarter and make more money with Tradespoon!
Plecanatide Will Be A Big Driver For SGYP
One of the reasons that I have such a bullish view with regard to what we can expect to see from Synergy Pharmaceuticals is plecanatide. The company has been working on the treatment for quite some time now, and I've been following them every step of the way. Watching the clinical trials has been very exciting, considering that each one ended with overwhelmingly strong results. In fact, due to these overwhelmingly strong results, the company has submitted a New Drug Application for plecanatide as a treatment for chronic idiopathic constipation. We will see the results of this application by January 2017.
Aside from the current application that is being processed, SGYP is looking to expand the indications associated with plecanatide. In fact, the company is currently in the midst of two pivotal Phase 3 clinical trials surrounding plecanatide as a treatment for irritable bowel syndrome with constipation (IBS-C). This is another indication for which plecanatide is looking overwhelmingly promising. In fact, the CEO of the company, Gary S. Jacob, recently made an announcement with regard to plecanatide as he released the company's most recent earnings report. Here's what he had to say:
“2016 is off to a strong and promising start for Synergy, highlighted by the U.S. Food and Drug Administration acceptance of our first new drug application for plecanatide in chronic idiopathic constipation... We continued to expand the utility and value of our uroguanylin-based platform technology while significantly strengthening our overall financial position. Moving forward, we believe we are well positioned to successfully execute on key pre-launch activities and will continue to evaluate all strategic options to ensure a successful launch of plecanatide early next year. Meanwhile, we expect top-line data from our two pivotal phase 3 trials with plecanatide in irritable bowel syndrome with constipation in the third quarter and intend to file our second NDA in IBS-C by the end of this year. Our first quarter results demonstrate our profound commitment to optimizing the value of plecanatide and dolcanatide and bringing these important new treatment options to patients suffering from GI diseases.”
Acquisition On The Table?
As you can tell from the above, I'm incredibly excited to see plecanatide hit the market, as I believe that it will be an overwhelmingly profitable treatment for SGYP. However, it's impossible to ignore another possibility that could send the stock skyrocketing - the possibility of an acquisition. There have been rumors flying around, for some time now, that the company may be considering selling itself in order to better position itself for the commercialization of the treatment. If this is, indeed, the case, it will likely end up being an incredibly high value acquisition, as plecanatide is showing promising signs. So, this is something to keep on the radar.
The Bottom Line
At the end of the day, whether or not Synergy Pharmaceuticals makes the decision to sell itself, the stock is likely to climb. Plecanatide is an incredible treatment, given everything I've seen from the clinical trials surrounding it, and dolcanatide looks promising. All in all, the company is on the right track for growth, and that's exactly what I'm expecting to see from SGYP.
Synergy Pharmaceuticals (SGYP) Stock: Is It In Your Portfolio Yet?
Resistance in the low 70s. We break through that and we could see $4.00 soon.
Thanks for the reply. Appreciate it.
You said: $SGYP huge news $15 buy rating with solid phase 3 data
Can you expand on this?
Thanks
So, this company paid for the first 2000 seats and we are giving away the next 150,000 to them FREE?
Our product is no good, (sarcastic) that is why this company gave Wave a five year deal on product they have already BOUGHT from them.
Well, Well, Well, Wave has crappy products (sarcastic).
Wave had terrible management,(sarcastic).
Solms is a buffoon, way over his head. (sarcastic).
Wave will be out of business before year end,(sarcastic).
Wave will never break even. (sarcastic)
All the engineers have left Wave. (sarcastic)
Ha Ha Ha.
Go Wave.
P.S. WAVE HAS LOUSY PRODUCTS THAT DON'T WORK. (Very Sarcastic)