Canaccord Reiterates Bullish Stance On Synergy Pharmaceuticals Inc (SGYP) Following Positive Second Phase 3 Trial In Chronic Idiopathic Constipation
Canaccord analyst Corey Davis came out today with a favorable report on Synergy Pharmaceuticals Inc (NASDAQ:SGYP), after the company announced positive top-line results from the second of two pivotal phase 3 clinical trials evaluating the efficacy and safety of two different plecanatide treatment doses (3.0 mg and 6.0 mg), taken as a tablet once-a-day, in 1337 adult patients with chronic idiopathic constipation.
Davis wrote, “Following its first Phase 3 trial in chronic idiopathic constipation that was successfully announced June 17, Synergy has now announced a successful second Phase 3 study that is almost identical in design. Both doses, 3.0mg and 6.0mg, met the primary endpoint with flying colors by demonstrating statistical significance in the percentage of “durable responder” patients — 20.1% of 3.0mg patients and 20.0% of 6.0mg-patients, compared to only 12.8% in placebo (p=0.004 for both doses).”
The analyst continued, “From a commercial standpoint, the most important data was the extremely low diarrhea side effect rate; at 3.2% and 4.5% for 3.0mg and 6.0mg – vs 1.3% placebo. These were less than half of the 9.7% observed in Ph2, and a fraction of Linzess’ 16% seen in its CIC Ph3. Therefore, with efficacy just as good and the low diarrhea rate as a clear differentiator in the marketplace, we feel very good in our target price”
Davis reiterated a Buy rating on SGYP with a price target of $19, which implies an upside of 111% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Corey Davis has a total average return of 19.1% and a 58.1% success rate. Davis has a 47.7% average return when recommending SGYP, and is ranked #192 out of 3718 analysts.