Presentation at ACG Meeting Offers Insight Into Synergy Pharmaceuticals Inc’s (SGYP) Plecanatide; H.C. Wainwright Weighs in
H.C. Wainwright analyst Ram Selvaraju positively views Synergy Pharmaceuticals Inc’s (NASDAQ:SGYP) plecanatide, an investigational compound for the treatment of chronic idiopathic constipation (CIC) and irritable bowel syndrome with constipation (IBS-C), after the drug maker presented new data at the American College of Gastroenterology (ACG) annual scientific meeting at The Venetian in Las Vegas.
From Selvaraju perspective, the low long-term discontinuation rate due to diarrhea underscores the benign safety profile of plecanatide and may serve to further differentiate the drug from the only currently-marketed guanylyl cyclase C (GC-C) receptor agonist, Linzess® (linaclotide).
Selvaraju noted, “plecanatide was the subject of a significant amount of positive sentiment at the ACG meeting from both key opinion leaders (KOLs) and industry professionals, and we speculate that, given the lack of an advisory panel requirement and the positive clinical data, Synergy may already be in the final stages of discussion with the FDA on potential approval for the drug in CIC.”
In anticipation of the timely approval of plecanatide in the CIC indication setting on January 29, 2017 and potential positive pivotal data for plecanatide in the IBS-C indication to be released in 4Q16, Selvaraju reiterated a Buy rating on shares of Synergy Pharmaceuticals, with a price target of $15, which implies an upside of 185% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ram Selvaraju has a yearly average return of -1.0% and a 38.6% success rate. Selvaraju has a 26.6% average return when recommending SGYP, and is ranked #3342 out of 4190 analysts.
As of this writing, all the 4 analysts polled by TipRanks rate Synergy Pharmaceuticals stock a Buy. With a return potential of 116%, the stock’s consensus target price stands at $11.38.