In a research report published Monday, H.C. Wainwright analyst Ram Selvaraju raised his price target on shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) to $16 (from $15), while reiterating a Buy rating, after the drug maker unveiled results from the first of two pivotal trials of its lead drug, plecanatide, in constipation-predominant irritable bowel syndrome (IBS-C).
Selvaraju commented, “Overall, the rates of withdrawal from treatment because of an adverse event were low (1.9% in 3mg and 1.8% in 6mg dose groups vs. 0 in placebo) and discontinuations due to diarrhea were infrequent (0.8% in 3mg and 1.6% in 6mg dose groups vs. 0 in placebo). In the wake of this favorable data, and in anticipation of positive results from the second trial of plecanatide in IBS-C, which we continue to expect to be released before the end of 2016, we reiterate our Buy rating while raising our 12-month price.”
“We believe that the top-line data from the first pivotal IBS-C trial positions plecanatide favorably vs. its most direct potential competitor, Linzess (linaclotide), which is marketed in the U.S. by Ironwood Pharmaceuticals and its partner Allergan plc,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ram Selvaraju has a yearly average return of -7.6% and a 33% success rate. Selvaraju has a 22.1% average return when recommending SGYP, and is ranked #4149 out of 4273 analysts.
Out of the 5 analysts polled by TipRanks, 4 rate Synergy Pharmaceuticals stock a Buy, while 1 rates the stock a Hold. With a return potential of nearly 115%, the stock’s consensus target price stands at $10.60.