Synergy Pharmaceuticals Inc (SGYP) Savvy Leadership Turnover and Upcoming Trulance Approval in IBS-C Have This Bull Confident

H.C. Wainwright's Ram Selvaraju commends new CEO Troy Hamilton's strong background in the biotech-verse and roots for Trulance as a long-term winner in the competitive IBS-C playing field.


Synergy Pharmaceuticals Inc (NASDAQ:SGYP) is amid a chief executive turnover, one that one bull believes pinpoint laser “commercial focus.” Now that Gary Jacob has departed his long-held shoes of Chief Executive Officer, President, and Chairman of the company to step back to a role of Executive Chairman, once Chief Commercial Officer Troy Hamilton has stepped in to assume the role of CEO as of last month.

H.C. Wainwright analyst Ram Selvaraju likes the shift in leadership, and believes both this and the forthcoming date with destiny for Trulance’s supplemental New Drug Application (sNDA) in constipation-predominant irritable bowel syndrome (IBS-C) come January 24th will prove to also “spur interest” as a short-term “regulatory catalyst.”

This label expansion including a new indication has good odds to “meaningfully” fire up sales momentum while also breathing new life into sales force messaging, wagers the analyst, who reiterates a Buy rating on SGYP stock with a $7 price target, which implies a 215% upside from where the shares last closed. (To watch Selvaraju’s track record, click here)

Selvaraju highlights, “We have known Mr. Hamilton since he first joined Synergy in July 2015, and would draw investors’ attention to the fact that he was the primary agent behind the commercial campaign in support of the company’s sole marketed drug, Trulance (plecanatide). Mr. Hamilton has extensive experience in the gastroenterology field, having previously spent almost a decade at Shire […] in that company’s gastrointestinal (GI) products division. Prior to this, he spent time at Johnson & Johnson […] in the Janssen Pharmaceuticals and McNeil Specialty Products divisions.”

“Multiple commercial parameters continue to improve gradually,” writes the analyst, who asserts: “In our view, the Trulance launch continues to progressively accelerate, with most reimbursement agencies having removed the new product blocks that from our perspective posed the most substantial hurdle to favorable formulary access and coverage of the product.”

True, this bull is certainly not blind to threats from Allergan as well as the biotech giant’s “large-scale promotional effort in support of the competitor Linzess,” Selvaraju continues to place his confidence behind SGYP’s Trulance asset long-term to win as the “superior and more patient-friendly product.”

TipRanks underscores a strong bullish analyst consensus betting on this biotech player, with 4 out of 5 analysts of the last 3 months rating a Buy on Synergy stock and just 1 maintaining a Hold. The 12-month average price target stands at $9.25, marking a nearly 317% upside from where the shares last closed.