Synergy Pharmaceuticals Inc fka SGYPQ

[Snackman]

5 Reasons Synergy Pharmaceuticals Should Strike A Distribution Deal With Valeant
Jan.11.17 | About: Synergy Pharmaceuticals, (SGYP)
Jose Solorio
Jose Solorio
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Summary

During the next 18 months Synergy's Plecanatide is going to hit the market. How should they approach the launch in order to benefit investors the most?

Valeant is a global powerhouse coming out from a crisis. They have every incentive to negotiate aggressive distribution deals.

Synergy's products are a complement offering to Valeant's key products. Valeant just announced a massive increase in a primary care workforce.

As we have already covered before, Synergy's pharmaceuticals (NASDAQ:SGYP) prospects are better than ever. The company is transitioning out of the speculative play into a potentially rapidly growing GI powerhouse and for that reason we are bullish and just recommended a trade to make up to 9.8% on the next 40 days.

Many bears have argued that sooner rather than later a dilutive stock offering is going to be issued as the launch costs overwhelm Synergy. With $110 million in cash and cash equivalents we think that's a possibility, but not a necessity. We believe striking a partnership with Valeant (NYSE:VRX) is a much better option. This isn't just a recommendation for both companies´management as we believe they are already in talks with each other, but rather a continuation of our bullish thesis for both companies.

The source of our speculation comes from CafePharma. A service similar to LinkedIn for workers of the pharmaceutical industry. This site allows them to start anonymous message threads. Before you discard this source as unreliable, spend some time on the site. Sometimes workers discuss internal policies, air discontentment about managers, talk about layoffs, salaries, work opportunities, etc in an anonymous way. The anonymous characteristics makes it very compelling. Nobody ever knows who leaked what or who is who. No paper trail, no sign in to the site, etc. Not even the site knows who posted what except for their IP address. Sure, you need to take everything you read with a grain of salt, but if there's some truth to the rumors it would seem team members of Valeant have been interviewing at Synergy.

http://seekingalpha.com/article/4036004-5-reasons-synergy-pharmaceuticals-strike-distribution-deal-valeant