Canaccord Chimes in on Synergy Pharmaceuticals Inc (SGYP) as It Prepares for Trulance Launch
Yesterday, Synergy Pharmaceuticals Inc (NASDAQ:SGYP) reported fourth-quarter financial results and reiterated the launch of Trulance (plecanatide), Synergy’s recently-approved lead drug, for treatment of chronic idiopathic constipation (CIC), which is expected later this month.
Subsequently, Canaccord analyst John Newman reiterated a Buy rating on shares of Synergy Pharmaceuticals, with a price target of $13, which implies an upside of 133% from current levels.
Newman noted, “SGYP is using third-party logistics (3PL) distribution network for product distribution, andis preparing to launch Trulance 3mg as a 30-count blister pack. Furthermore, SGYP haspriced Trulance with a WAC of $353.48, which is on par with Ironwood’s Linzess, andestablished co-pay card programs and patient assistance programs (PAP) for marketaccess. We see the PAP as a positive move for rapid market penetration and uptake. Given Trulance’s chronic use and existence of competitor with near-identical WAC, patients are likely to be price sensitive, thus reduction of end purchasing price will becritical in maintaining market access.”
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Newman has a yearly average return of -7.3% and a 38% success rate. Newman has a 25.2% average return when recommending SGYP, and is ranked #4408 out of 4512 analysts.
Out of the 6 analysts polled in the past 12 months, 5 rate Synergy Pharmaceuticals stock a Buy, while 1 rates the stock a Hold. With a return potential of 106.5%, the stock’s consensus target price stands at $11.50.