Linzess Numbers Offer Insight Into Synergy Pharmaceuticals Inc (SGYP) Trulance Launch

Canaccord analyst John Newman weighs in with a few insights on Synergy Pharmaceuticals Inc (NASDAQ:SGYP), after Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD), the main competitor for SGYP’s chronic idiopathic constipation drug Trulance, reported net Linzess US sales of ~$147M, which represents a ~15% decrease from last quarter’s ~$174M net sales. Synergy shares closed today at $3.92, down $0.08 or -2.00%.

Newman commented, “We believe this slowdown is attributable to Trulance’s competitive pressure, resulting in lower Linzess growth and possible market share stabilization. It should be noted that previous 1Q earnings calls have mentioned inventory builds, but not draw-downs.”

“Prescription data for Linzess shows flattening scripts during 1Q17 vs 4Q16, suggesting an impact from the Trulance launch. An alternate interpretation is that the overall market has peaked, but we believe this is unlikely based on ~22% growth for Linzess in 2016. We believe that the Linzess prescription trend is a useful indicator for the Trulance launch, as reported prescription data capture is more mature vs Trulance, which is new,” the analyst added.

As such, Newman reiterates a Buy rating on SGYP, with a price target of $13.00, which represents a potential upside of 232% from where the stock is currently trading.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of -8.3% and a 35% success rate. Newman has a -13.8% average return when recommending SGYP, and is ranked #4497 out of 4568 analysts.

Out of the four analysts polled by TipRanks (in the past 3 months), three rate Synergy stock a Buy, while only one rates the stock a Sell. With a return potential of 295%, the stock’s consensus target price stands at $15.50.


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