Synergy Pharmaceuticals (SGYP) Stock: Is It In Your Portfolio Yet?
Jun 1, 2016
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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...
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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?
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