Rodman & Renshaw’s Ram Selvaraju Confident on Synergy Pharmaceuticals Inc (SGYP) Following SNDA Submission
Synergy Pharmaceuticals Inc (NASDAQ:SGYP) shares are rising almost 3% today after the biotech firm made waves filing the supplemental New Drug Application (sNDA) for Trulance (plecanatide), the firm’s just-approved lead candidate for the treatment of constipation-predominant irritable bowel syndrome (IBSC).
Rodman & Renshaw analyst Ram Selvaraju cheers the drug’s “best-in-class product profile,” continuing to believe it has a “marked advantage” over the competition with a “clearly superior” safety profile. As the firm’s label extension application moves just on “schedule,” the analyst reiterates a Buy rating on SGYP with a price target of $18, which represents a 274% increase from where the shares last closed.
“As a reminder, Trulance™ has already received regulatory approval in chronic idiopathic constipation (CIC) and has generated positive topline data in two robustly-powered, placebo-controlled, randomized and double-blinded clinical trials in IBS-C patients. In our view, therefore, Trulance™ approval in IBS-C should be a matter of routine. We anticipate that the drug’s label could be updated to reflect approval for the IBS-C indication early in 2018, assuming a 10-month review period. We believe Synergy could report 2017 top-line revenue of $53.6M based on Trulance™ sales in CIC. Synergy could turn sustainably profitable in early 2018. In anticipation of rapid traction for Trulance™ in the U.S. as a best-in-class therapeutic solution for constipatory disorders,” Selvaraju concludes.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, Ram Selvaraju is ranked #4,155 out of 4,556 analysts. Selvaraju has a 36% success rate and faces a loss of 2.1% in his yearly returns. However, when recommending SGYP, Selvaraju gains 7.5% in average profits on the stock.
TipRanks analytics show SGYP as a Strong Buy. Based on 5 analysts polled by TipRanks in the last 3 months, all 5 rate a Buy on Synergy stock. The 12-month average price target stands at $13.13, marking a nearly 176% upside from where the stock is currently trading.