As of the end of August 2016, Synergy Pharmaceuticals Inc (NASDAQ:SGYP) competitor Allergan has changed the language in its product label for Linzess, a treatment to help Irritable Bowel Syndrome with Constipation (IBS-C) or Chronic Ideopathic Constipation (CIC), now adding a warning description regarding the occurrence of severe diarrhea cases that have led to hospitalization or measures where an IV was necessary.

What for Allergan means negative publicity for its leading pipeline drug, Rodman & Renshaw analyst Ram Selvaraju sees as a potential opportunity, both for Synergy and its future marketing partners and/or acquirers to shrewdly take advantage of this “substantial marketing edge to exploit with plecanatide.” As such, Selvaraju reiterates a Buy rating on shares of SGYP with a $15 price target, which represents a nearly 202% increase from where the stock is currently trading.

The analyst also finds it worthy to note that the biotech firm “remains highly confident” as it awaits official NDA approval from the FDA, especially considering that the FDA does not require an advisory panel vote for plecanatide to obtain approval in CIC treatment.

“We reiterate that we do not anticipate such severe diarrhea issues to be a concern with plecanatide, which we view as a potential product that has similar efficacy to linaclotide but superior safety. In anticipation of the approval of plecanatide in the chronic idiopathic constipation (CIC) indication setting on January 29, 2017 and potential positive pivotal data for plecanatide in the constipation-predominant irritable bowel syndrome (IBS-C) indication to be released in 4Q16, we reiterate our Buy rating and 12-month price target of $15.00 per share on SGYP,” he concludes.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, two-star analyst Ram Selvaraju is ranked #2,345 out of 4,147 analysts. Selvaraju has a 43% success rate and earns 0.2% in his annual returns. When recommending SGYP, Selvaraju yields 16.1% in average profits on the stock.

TipRanks analytics demonstrate SGYP as a Strong Buy. 100% of analysts polled in the last 3 months rate a Buy on SGYP. The consensus price target stands at $13.00, marking a 162% upside from where the shares last closed.