Canaccord Comments on Synergy Pharmaceuticals Inc (SGYP) Following First Phase 3 Data in IBS-C
In a research report released Friday, Canaccord analyst John Newman reiterated a Buy rating on shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) with a $13 price target, after the drug maker announced top-line results from the first of two pivotal phase 3 clinical trials evaluating the efficacy and safety of plecanatide, an investigational once-daily orally-administered compound, in 1,135 adult patients with irritable bowel syndrome with constipation (IBS-C).
Newman commented, “Plecanatide showed a statistically significant improvement vs. placebo for Overall Response at both doses, a clear positive, in our view. The 3 mg and 6 mg doses showed 21.5% and 24% Overall Responders vs. 14.2% placebo, a difference of 7.3%, and 9.8%, respectively. On a percentage basis, the plecanatide responder rate was 51% and 69% higher than placebo for the 3 mg and 6 mg doses, which compared well to the first Linzess study in IBS-D at 60%. We await results of the second study in IBS-D where Linzess showed a ~142% increase in responder rate vs. placebo. Although these margins are a bit less than Linzess, we believe the treatment effect combined with a much lower rate of diarrhea gives plecanatide a large advantage over Linzess.”
“We await results from the second Phase 3 study for plecanatide in IBS-C in December, and expect similar positive results. We also await secondary analyses looking specifically at the Abdominal Pain Responder portion of the primary endpoint, as well as data looking at the magnitude of effect over time,” the analyst concluded.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of -13.9% and a 32% success rate. Newman has a 25.9% average return when recommending SGYP, and is ranked #4191 out of 4274 analysts.
As of this writing, all the 4 analysts polled by TipRanks rate Synergy Pharmaceuticals stock a Buy. With a return potential of 119%, the stock’s consensus target price stands at $11.38.