During the recently-concluded Digestive Disease Week (DDW) conference held May 6-9 in Chicago, Synergy Pharmaceuticals Inc (NASDAQ:SGYP) presented additional data from the previously-announced pivotal trials of Trulance™ (plecanatide) in constipation-predominant irritable bowel syndrome (IBS-C).

H.C. Wainwright analyst Ram Selvaraju opined, “These data showcased the activity profile of Trulance™ in CIC, the long-term safety of the product, and intriguing preclinical evidence indicating that both Trulance™ and the follow-on candidate dolcanatide could positively regulate gastrointestinal tract permeability in the context of inflammation induced by lipopolysaccaride (LPS), thus positing a role for these drugs in protecting the GI tract from leakage in various inflammatory conditions. The therapeutic impact of this finding may be relevant in certain inflammatory bowel diseases, such as ulcerative colitis, where dolcanatide has already shown promise.”

Since the trials with Trulance in CIC and IBS-C were substantially larger than previously-completed studies with other medications, Selvaraju considers the findings from the Trulance studies to be the most robust. “In our view, Synergy should secure approval of the supplemental New Drug Application (sNDA) for Trulance™ in IBS-C in early 2018,” the analyst concludes.

As such, Selvaraju reiterates a Buy rating on shares of Synergy Pharmaceuticals, with a price target of $18.00, which implies an upside of 335% from current levels.

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 -6.9% and a 35% success rate. Selvaraju has a -1.2% average return when recommending SGYP, and is ranked #4466 out of 4563 analysts.

Out of the four analysts polled by TipRanks (in the past 3 months), three rate Synergy Pharmaceuticals stock a Buy, while one rates the stock a Sell. With a potential return of 274%, the stock’s consensus target price stands at $15.50.