Analyst Shares Two Cents on Synergy Pharmaceuticals (SGYP) Following DDW Conference


As Synergy Pharmaceuticals (NASDAQ:SGYP) revealed new clinical data during the Digestive Disease Week (DDW) conference, H.C. Wainwright’s healthcare analyst Ram Selvaraju weighs in on the implications of new findings.

Selvaraju stated, “Synergy showcased the results of a new risk/benefit analysis from pooled Phase 3 data evaluating plecanatide and linaclotide for the treatment of adults with chronic idiopathic constipation (CIC). A retrospective analysis of pooled data from five Phase 3 trials of similar patient populations and identical treatment duration calculated the number needed to harm (NNH) and number needed to treat (NNT) values. The analysis also assessed the relative therapeutic risk/benefit profile, or the likelihood of one treatment to be helpful or harmful (LHH), calculated as the NNH/ NNT ratio. This approach revealed what appears to be a substantial advantage for Synergy’s lead drug, since it seems much more likely to generate a beneficial effect in treated patients than any adverse event; conversely, both linaclotide doses assessed via this analytical methodology appeared more likely to induce a deleterious effect in patients before a beneficial impact. While we would caution against interpreting these findings too emphatically, since plecanatide and linaclotide have comparable efficacy and have never been tested headto-head, we feel that this new analysis does provide further evidence in support of plecanatide’s best-in-class positioning in treatment of constipatory disorders.”

Selvaraju reiterates a Buy rating on SGYP stock, with a $7.00 price target, which implies over 300% upside from current level. (To watch Selvaraju’s track record, click here)

Selvaraju is not the only fan of the biotech company on Wall Street, as TipRanks analytics exhibit SGYP as a Strong Buy. Based on 5 analysts polled in the last 3 months, 4 rate a Buy rating on Synergy stock while 1 maintains a Hold. The 12-month average price target stands at $8.25, marking a 385% upside from where the stock is currently trading.

 

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