Synergy to Pay Hefty Fines
Synergy Pharmaceuticals Inc (NASDAQ: SGYP) fell in price Friday, after the company reported it will need to pay $38 million-$51 million in penalties if sales of TRULANCE do not meet the minimum amount required per its contract with CRG.
The New York-based Synergy also issued a strategic review update, in which it stated that in April 2015, prior to the FDA approval and launch of TRULANCE® (plecanatide) in 2017, Synergy hired a top-tier advisory firm to engage external parties and evaluate all strategic options available to the Company, including US and ex-U.S. partnerships and a possible sale of the Company.
Ultimately, there were no offers to acquire the Company and no partnership opportunities emerged in this evaluation that it believed aligned with the Company strategically or financially. As a result, Synergy determined the best course of action for the business and Synergy shareholders at that time was to commercialize on its own.
However, the Company has always remained open to, and committed to exploring all strategic and business development opportunities to enhance shareholder value.
These efforts resulted in several recently announced partnerships and collaborations in 2018, including two offshore licensing deals for TRULANCE and a collaboration with the National Cancer Institute for Synergy’s second asset, dolcanatide.
A news release out Thursday said "Synergy does not believe that it will obtain any offers that are significantly higher in value than those received to date. Nevertheless, Synergy remains committed to the continued evaluation of all opportunities to enhance shareholder value, and there is no set timetable for completing this process."
Shares tumbled 97 cents, or 69%, to 43 cents
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