On Monday, biotech firm Synergy Pharmaceuticals Inc (NASDAQ:SGYP) reported second-quarter financial results as well as declared completion of over 95% for patient enrollment in its two pivotal Phase 3 constipation-predominant irritable bowel syndrome (IBS-C) clinical trials.
Feeling positive on plecanatide IBS-C data as a next value driver for Synergy, Rodman & Renshaw analyst Ram Selvaraju reiterates a Buy rating on SGYP with a $15.00 price target, marking a 216% increase from where the shares last closed.
Selvaraju believes that in light of the timeline with both IBS-C Phase 3 studies due by fourth quarter, Synergy will likely file for approval of plecanatide in the IBS-C indication sometime by the close of 2017’s first quarter. Meanwhile, the pipeline is already under FDA review with a pending PDUFA approval decision due January 29, 2017 evaluating the drug in context of the treatment of chronic idiopathic constipation (CIC).
Selvaraju notes, “Synergy remains highly confident on the plecanatide CIC NDA’s likelihood of approval, and reiterated in yesterday’s press release that the FDA had indicated no need for an advisory panel vote on plecanatide for CIC. Further, we believe the FDA considers plecanatide a valuable potential addition to the CIC treatment armamentarium because of its safety advantages vs. the only currently-marketed guanylyl cyclase C (GC-C) receptor agonist, linaclotide, and thus we remain optimistic on plecanatide’s likelihood of timely U.S. approval for the CIC indication.”
According to TipRanks, two-star analyst Ram Selvaraju is ranked #2,838 out of 4,105 analysts. Selvaraju has a 43% success rate and loses 0.1% in his annual returns. However, when recommending SGYP, Selvaraju yields 19.3% in average profits.
Tipranks analytics exhibit SGYP as a Strong Buy. Based on 4 analysts polled in the last 3 months, all 4 rate a Buy on Synergy. The 12-month average price target stands at $11.38, marking a 136% upside from where the stock is currently trading.
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