BTIG Initiates Buy on Synergy Pharmaceuticals Inc; Sees 67% Upside for the stock
In a research report published today, BTIG analyst Tim Chiang initiated coverage on shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP), with a Buy rating and a price target of $11, which represents a potential upside of 67% from where the stock is currently trading.
Chiang wrote, “With recently announced top-line data from its second Phase 3 trial showing positive results for plecanatide (for the treatment of CIC, or chronic idiopathic constipation), we believe the company is on target to submit its NDA filing by year end. Synergy has also two ongoing Phase 3 trials for plecanatide (for the treatment of constipation-predominant IBS), with top-line results expected to be released from one of the two trials in late 15/early 16. Based on our analysis of the clinical data, we believe plecanatide could have peak sales potential in excess of $800 million by 2022 (assuming launch for CIC in 2017 and IBS-C in 2018). We expect 2019 to be the first year of profitability for the company, when plecanatide sales reach an estimated~$330M.”
Bottom line: “We think SGYP’s plecanatide shows promise as a future treatment for CIC and IBS-C, which is a growing market category in the US. With ~45 million Americans suffering from chronic constipation and IBS, and companies like Allergan and Valeant focusing their marketing efforts on GI treatments, it seems logical to imagine SGYP as a takeover candidate.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tim Chiang has a total average return of 23.7% and a 80.0% success rate. Chiang is ranked #190 out of 3730 analysts.
All the 4 analysts polled by TipRanks rate Synergy Pharmaceuticals stock a Buy. With a return potential of 28%, the stock’s consensus target price stands at $8.50.