Synergy Pharmaceuticals Inc (NASDAQ:SGYP) announced the pricing of its underwritten public offering of 20,325,204 shares of its common stock at a price to the public of $6.15 per share, before deducting underwriting discounts and commissions and other estimated offering expenses. The offering is expected to close on or about February 6, 2017, subject to customary closing conditions.

Cantor Fitzgerald & Co. and Canaccord Genuity Inc. are joint book-running managers for the offering. H.C. Wainwright & Co., LLC is a co-manager for the offering.

Synergy intends to use the net proceeds from the offering to fund its commercialization activities related to TRULANCE™, further clinical development of plecanatide and for working capital and other general corporate purposes. Synergy may also use the net proceeds from this offering to fund possible acquisitions of other companies, products or technologies, though no such acquisitions are currently contemplated.

In the wake of the public offering, shares of Synergy Pharmaceuticals are falling nearly 12% to $6.21 in pre-market trading Wednesday. SGYP has a 1-year high of $7.15 and a 1-year low of $2.50. The stock’s 50-day moving average is $5.95 and its 200-day moving average is $5.24.

On the ratings front, SGYP has been the subject of a number of recent research reports. In a report issued on January 27, H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on SGYP, with a price target of $18, which represents a potential upside of 155% from where the stock is currently trading. Separately, on January 26, Oppenheimer’s Derek Archila reiterated a Buy rating on the stock and has a price target of $10.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ram Selvaraju and Derek Archila have a yearly average loss of 4.2% and 2.7% respectively. Selvaraju has a success rate of 37% and is ranked #4152 out of 4373 analysts, while Archila has a success rate of 44% and is ranked #3243.

Overall, one research analyst has assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $8.75 which is 24% above where the stock closed yesterday.

Synergy Pharmaceuticals, Inc. is a biopharmaceutical company, which focuses on the development and commercialization of novel gastrointestinal (GI) therapies. Its product includes plecanatide and dolcanatide.