Synergy Pharmaceuticals Inc fka SGYPQ

[Snackman]

3 Biotech Stocks to Consider Ahead of FDA Decisions

By Tipranks | October 25, 2017 — 11:36 AM EDT

The key date to seal Trulance’s fate is January 24, 2018. This is the PDUFA date – the deadline for the FDA to announce if Trulance’s supplemental new drug application (sNDA) for IBS-C is approved.

“We believe the likelihood of approval is high” writes Cantor analyst William Tanner. “Approval for that indication should expand the commercial opportunity, in our opinion, and place the drug on more equal footing, indication-wise, with Linzess and Amitiza.” This top analyst, who is ranked #866 out of over 4,700 tracked analysts on TipRanks, has a buy rating and $11 price target (311% upside potential) on SGYP stock.

Similarly, Cowen analyst John Newman has “high confidence of a positive response from the FDA, which should help expand Trulance’s commercial potential.” Newman’s bullish take on the stock is reflected in his $13 price target for SGYP – its highest price target yet and 386% above the current share price of just $2.67. He adds that “SGYP is planning to transfer Publicis Touchpoint contract sales representatives over to the company to support the Trulance indication expansion into IBS-C.”

In fact, Trulance is already approved but for chronic idiopathic constipation (CIC). And Newman is confident that Trulance can take rival market share for CIC as “less diarrhea and the ability to dose with or without food make Trulance a simpler and easier choice for doctors and patients with CIC.” Meanwhile, Tanner contemplates the potential of Trulance to expand further afield with, for example, the treatment of opioid-induced constipation (OIC) or ulcerative colitis (UC). He concludes: “Entering relatively crowded markets populated with established products, a perception that Trulance compares favorably with alternative options should bias success, in our opinion.”

Read more: 3 Biotech Stocks to Consider Ahead of FDA Decisions | Investopedia http://www.investopedia.com/investing/3-biotech-stocks-consider-ahead-fda-decisions/#ixzz4waieBC1X
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