Rodman & Renshaw Analyst Remains Bullish on Synergy Pharmaceuticals Inc (SGYP); Anticipating FDA Approval for Plecanatide
Synergy Pharmaceuticals Inc (NASDAQ:SGYP) announced last week plans to delay the release timeline of Phase 3 trial data that evaluates the treating success of plecanatide on patients with constipation-predominant irritable bowel syndrome (IBS-C). The updated timeline bumps the release of the pipeline drug’s results to the fourth quarter of 2016- and might point to a filing for approval from the FDA in the following quarter.
However, Rodman & Renshaw analyst Raghuram Selvaraju still holds a positive outlook for IBS-C trials ahead. The analyst reiterates a Buy rating on SGYP with a price target of $15.00.
Preliminary observation has revealed a stalling in patient enrollment- mainly due to patients not falling under the strict criteria they must meet when screened to be able to initiate treatment. Yet, Selvaraju trusts that the stringency of these regulations set in place are what render the trials valid benchmarks of the pipeline drug’s efficacy.
There are two crucial trials in their final stages, both of which could release results back-to-back, as the second trial is now experiencing faster patient enrollment rates by about 30%. In-depth results from these two trials are to be studied at next May’s conference of Digestive Disease Week in Chicago. Selvaraju anticipates successful results and fully expects Synergy to follow suit by submitting plecanatide for a New Drug Application (NDA) from the FDA. Selvaraju believes “the FDA considers plecanartide a valuable potential addition to the CIC treatment because of its safety advantages vs. the only currently-marketed guanylyl cyclase C (GC-C) receptor agonist, linaclotide,” and as far as the analyst is concerned, plecanatide remains fully on track to receive an FDA blessing.
As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. According to TipRanks, Raghuram Selvaraju is ranked #3,707 out of 4,058 analysts, upholding a success rate of 39% and cumulating an average loss of 3.4%.
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 205% increase from current levels.