Synergy Pharmaceuticals Inc fka SGYPQ

[Snackman]

Billionaire Israel ‘Izzy’ Englander Bets on Three Biotech Stocks: Valeant Pharmaceuticals Intl Inc (VRX), Gilead Sciences, Inc. (GILD), Synergy Pharmaceuticals Inc (SGYP)

[e-mail] (Ben Mahaney)
SmarterAnalystJune 12, 2017

Israel "Izzy" Englander is a self-made man living the American dream, whose Polish parents have since seen their son carve out a small fortune for himself of a whopping $5.2 billion. An NYU graduate, this hedge fund guru kick-started Millenium Management 28 years ago, taking the firm from $35 million to now $34 billion in assets. A man who once worked along Wall Street, Englander learned the ins and outs of the financial world, managing to return 13% for Millenium seven years ago, and achieving a 6% rise one year later.

The billionaire's firm has since outperformed a great deal of its competitors. These days, in a biotech-enthusiastic first quarter, Englander has boosted shares in three top players: Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Gilead Sciences, Inc (NASDAQ:GILD), and Synergy Pharmaceuticals Inc (NASDAQ:SGYP). Let's explore the guru's confidence in the biotech sector:

Over 3 Million Shares Invested in Synergy

Englander sees reason to be confident when assessing Synergy's prospects, buying 1,118,394 shares, taking his position up to 3,256,067 shares worth $15,173,000. The shares have since collected 75% of their value as of the most recent SEC filing, with a pipeline that leaves plenty of room to instill positivity in SGYP investors.

Lead candidates plecanatide (Trulance) and dolcanatide specifically could excite the bulls, as there is potential in the field of gastrointestinal (GI) disorders.

Trulance has the capacity to treat not only patients suffering from chronic idiopathic constipation (CIC) but also could aid those with irritable bowel syndrome with constipation (IBS-C), making the drug candidate doubly as compelling.

Trulance should dominate the short-term value of the stock and if the drug garners a green light in the indication of IBS-C, the shares could see a meaningful rise in value.

Just last Wednesday, the biotech firm revealed the FDA approved its filed sNDA for Trulance in IBS-C, setting a PDUFA date for January 24, 2018, marking a crucial climb on the ladder for Synergy in tapping into the IBS-C market.

Additionally, dolcanatide could prove valuable for the expansion of the firm's GI franchise, as the drug is designed to treat ulcerative colitis (UC).

While other treatments are certainly out there for tackling UC, should dolcanatide prove itself effective, SGYP could have an advantage in the market as far as safety when held against its competitors.

The cash roadway looks solid for the firm through the long-term when taking under account commercial prospects lining a profitable path for years to come. A lot will be riding on the PDUFA date, where all eyes of the biotech-verse will be focused come January.

Wall Street mirrors Englander's vote of confidence, considering TipRanks analytics exhibit SGYP as a Buy. Out of 6 analysts polled by TipRanks in the last 3 months, 5 are bullish on Synergy stock while 1 is bearish. With a return potential of 208%, the stock's consensus target price stands at $12.40.