BTIG analyst Tim Chiang dives in on Synergy Pharmaceuticals Inc (NASDAQ:SGYP) after recent meetings with management have bolstered his positivity on the firm’s shares. As such, the analyst reiterates a Buy rating on SGYP with a price target of $11.00, which represents a 113% increase from where the shares last closed.
On back of discussions with the management team, Chiang remains especially bullish on SGYP amid ongoing launch preparations for the biotech firm’s lead product candidate plecanatide, designed to treat patients with chronic constipation and irritable bowel syndrome with constipation (IBS-C). In the near-term, the analyst anticipates greater visibility on the pipeline drug.
Furthermore, Chiang notes, “In addition to the expected release of additional clinical data on plecanatide at the ACG meeting this week, we also expect top line results from its pivotal Phase 3 IBS-C trials to be released this Fall. Based on the positive Phase 3 results presented earlier this year at DDW, we believe plecanatide should be approved by the FDA in early 2017, with a commercial launch occurring in 1Q17.”
“With ~$141M of cash on the balance sheet as of the end of 2Q16, Synergy seems adequately funded. However, with a US commercial launch of plecanatide targeted for 1Q17, we believe the Co. may look to raise additional funds to further bolster its balance sheet,” Chiang contends.
In the long-term, the analyst contends plecanatide “has the potential to become a meaningful new product with sales potential in excess of $400M by 2020,” and predicts an approval for the chronic idiopathic constipation (CIC) indication is “likely” when considering his review of Phase 3 data reported at the Digestive Disease Week (DDW) meeting in San Diego, California earlier this year.
This week, Chiang anticipates a presentation of additional long-term data forthcoming at the American College of Gastroenterology meeting in Las Vegas, Nevada.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Tim Chiang is ranked #162 out of 4,180 analysts. Chiang has a 61% success rate and earns 22.7% in his yearly returns. When recommending SGYP, Chiang yields 33.6% in average profits on the stock.
TipRanks analytics demonstrate SGYP as a Buy. Based on 2 analysts polled in the last 3 months, 100% rate a Buy on SGYP. The consensus price target stands at $13.00, marking a nearly 152% upside from where the stock is currently trading.