Analysts came out today with an optimistic view on Synergy Pharmaceuticals Inc (NASDAQ:SGYP), Relypsa Inc (NASDAQ:RLYP), and Incyte Corporation (NASDAQ:INCY), as the iShares Nasdaq Biotechnology ETF (IBB) tried to recover recent losses with gains of nearly one percent today.
Synergy Pharmaceuticals Inc
Rodman & Renshaw analyst Ram Selvaraju reiterated a Buy rating on shares of Synergy Pharmaceuticals Inc, with a price target of $20, after competitor Ironwood Pharmaceuticals reported positive data from a Phase 3 trial of its marketed drug Linzess® (linaclotide) in chronic idiopathic constipation.
Selvaraju noted, “In the wake of the results of this study, while we acknowledge the potential improvement in competitive positioning for linaclotide vs. plecanatide, we remain positive regarding plecanatide’s prospects in CIC and constipationpredominant irritable bowel syndrome (IBS-C) and therefore reiterate our Buy rating.”
“We remind investors that one of the key competitive advantages for Synergy’s lead candidate, plecanatide, is reduced incidence and severity of diarrhea as a side effect. If low-dose linaclotide were to enter the market with clearly improved safety and equivalent efficacy to the currently-approved doses of linaclotide, the degree of differentiation between linaclotide and plecanatide may be reduced. However, we note that plecanatide remains the direct analog of the naturally-occurring human peptide, uroguanylin, and that Ironwood’s drug has not been directly compared to plecanatide in head-to-head studies,” the analyst continued.
Selvaraju concluded, “We would advise investors to accumulate Synergy shares on any weakness driven by sentiment around release of this competing data.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ram Selvaraju has a total average return of 3.5% and a 43% success rate. Selvaraju has a -15.8% average return when recommending SGYP, and is ranked #1134 out of 3773 analysts.
All the 5 analysts polled by TipRanks rate Synergy stock a Buy. With a return potential of 125%, the stock’s consensus target price stands at $14.
Oppenheimer analyst Ling Wang reiterated an Outperform rating on shares of Relypsa, with a price target of $55, as the company has an upcoming PDUFA date on October 21, 2015 for a drug called Patiromer for the treatment of hyperkalemia.
Wang wrote, “Our recent discussion with a nephrology specialist continues to support our bullish view on Patiromer. Our consultant views the risk of Patiromer’s not being approved as low and notes that chronic hyperkalemia represents a large unmet need. He does not have a strong preference between Patiromer and competing product ZS-9, especially in the chronic setting, assuming a QD label on Patiromer. He also believes a good portion of the initial patients can be helped with these newer drugs chronically, supporting a long treatment duration and large market opportunity.”
“We continue to see the opportunity in hyperkalemia as sufficiently large to support multiple winners. With an EV of only $477M, we view investor expectations for the Patiromer launch as fairly low and expect the upcoming approval and launch of Patiromer to drive upside,” the analyst concluded.
According to TipRanks, analyst Ling Wang has a total average return of -14.4% and a 19.2% success rate. Wang has a -40.1% average return when recommending RLYP, and is ranked #3704 out of 3773 analysts.
All the 6 analysts polled by TipRanks rate Relypsa stock a Buy. With a return potential of 214.3%, the stock’s consensus target price stands at $54.
In a research report released Wednesday, J.P. Morgan analyst Cory Kasimov reiterated an Overweight rating on Incyte Corp. shares, with a price target of $118, after partners Eli Lilly and Incyte released top-line data from baricitinib’s Phase III RABEAM trial. Baricitinib was found to be superior to Humira on ACR20 and DAS28 from week 12 onwards. Baricitinib’s safety profile was in-line with prior data, though much LT experience is needed.
Kasimov observed, “Overall, we believe LLY/ INCY have gathered a strong set of data which should bode well for the commercial launch. Given how entrenched the current participants are in the RA market, we believe baricitinib may launch slowly but ultimately become a blockbuster over time as RA and new inflammatory indications come along. INCY will be entitled to 20-29% royalties on baricitinib sales in RA.”
According to TipRanks, analyst Cory Kasimov has a total average return of -6.0% and a 37.8% success rate. Kasimov has a 48.9% average return when recommending INCY, and is ranked #3619 out of 3773 analysts.
Out of the 12 analysts polled by TipRanks, 10 rate Incyte stock a Buy, while 2 rate the stock a Hold. With a return potential of 11%, the stock’s consensus target price stands at $117.10.
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