BTIG Analyst Remains Bullish On Synergy Pharmaceuticals Inc (SGYP) Despite NDA Filing Delay
Analyst Tim Chiang of BTIG expresses his concern about the slowdown in Synergy Pharmaceuticals Inc’s (NASDAQ:SGYP) Phase 3 trials for plecanatide, a treatment for IBS-C, or irritable bowel syndrome with constipation. Chiang notes that this slowdown has led to a new timeline for the pipeline drug. Pending favorable results from the trials, the analyst now expects Phase 3 data to be released in the fourth quarter and a New Drug Application, or NDA, to be filed in early 2017.
The analyst explains, “While we maintain our Buy rating on SGYP shares, we think investors are squarely focused on an upcoming FDA approval decision for plecanatide (for the treatment of chronic constipation) in early 2017 (Jan.29 PDUFA date).” After talking over the situation Friday morning with Synergy Pharma, Chiang discovered that a cause for this delay in patient enrollment lies in an opposite rise in patient numbers who fail to meet post-screening criteria. However, Chiang has full hopes for the pharmaceutical/biotech giant to gain speed by fourth quarter this year with not one, but two crucial results of unique Phase 3 trials disclosing results for plecanatide therapies.
The analyst maintains his Buy rating with a price target of $11, marking an increase of 205% from current levels.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. Chiang is ranked #717 out of 4,058 analysts on TipRanks, with a 57% success rate and an average return of 6.6%.
TipRanks shows that out of the 4 analysts who rated Synergy Pharmaceuticals in the last 3 months, all 4 gave a Buy rating. The average 12-month price target for the stock is $11.38, marking a 215.24% increase from current levels.