In a research report released Friday, Canaccord analyst John Newman reiterated a Buy rating on shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) with a $13.00 price target, after the company announced it has reached the FDA mid-cycle review milestone for the plecanatide new drug application (NDA) in chronic idiopathic constipation (CIC). In addition, the company provided an update on the ongoing irritable bowel syndrome with constipation (IBS-C) program.
Newman wrote, “Synergy now expects top-line Phase 3 data for both plecanatide IBS-C trials in 4Q16 vs. 3Q16 due to a slower positive screen rate and randomization rate than previously. We do not expect this change to have a material effect on the outcome of the two Phase 3 trials, and continue to expect positive data. We believe that competition with Linzess and other clinical trials for IBS-C patients may be dampening the positive screen and randomization rate for plecanatide slightly, but we do not expect an effect on the quality of clinical data for plecanatide.”
“Importantly, Synergy is not making any changes to the enrollment criteria for the two Phase 3 plecanatide trials in IBS-C, that is the enrollment criteria remain robust and stringent, which we view as positive. Importantly, we believe taking more time to enroll patients with the proper criteria for IBS-C will ultimately benefit Synergy and increase the chance of positive Phase 3 data,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of -16.4% and a 30.6% success rate. Newman has a 17.4% average return when recommending SGYP, and is ranked #3966 out of 4060 analysts.
All the 4 analysts polled by TipRanks rate Synergy Pharmaceuticals stock a Buy. With a return potential of 218.6%, the stock’s consensus target price stands at $11.38.