As Synergy Pharmaceuticals Inc (NASDAQ:SGYP) prepares to release top-line results from two pivotal Phase 3 IBS-C trials before 2016 ends, BTIG analyst Tim Chiang is enthusiastic on the biotech firm, maintaining confident expectations for its pipeline’s prospects moving forward.
Therefore, the analyst reiterates a Buy rating on SGYP with a price target of $11, which represents a just under 101% increase from where the shares last closed.
Chiang asserts, “We remain positive on SGYP shares ahead of the upcoming release of Phase 3 data for plecanatide (in patients with constipation predominant IBS). We expect top line results to be announced before year end. If positive, we believe an sNDA filing will occur in the first quarter of 2017. In addition, an FDA approval decision for plecanatide (for the treatment of chronic constipation) is expected by Jan.29, 2017.”
Moreover, the analyst commends the significant sales revenue within the realm of plecanatide’s possibility. “We believe Synergy’s plecanatide (once-daily tablet for the treatment of CIC and IBS-C) has the potential to become a meaningful new product with sales potential in excess of $400M by 2020. With a Jan. 29, 2017 FDA action date (and no Advisory Panel meeting expected), we believe an approval for the CIC indication is likely, based on our review of Phase 3 data which was recently presented at the ACG meeting in Las Vegas, NV,” Chiang contends.
Following a recent conversion of various of the firm’s holders of the convertible senior notes exchanging in place for common shares, the analyst sees all bullish signs ahead for SGYP shares. Additionally, SGYP closed the third quarter with approximately $109 million in cash.
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. According to TipRanks, five-star analyst Tim Chiang is ranked #134 out of 4,256 analysts. Chiang has a 60% success rate and realizes 23.2% in his yearly returns. When suggesting SGYP, Chiang yields 28.6% in average profits on the stock.
TipRanks analytics demonstrate SGYP as a Strong Buy. Based on 3 analysts polled in the last 3 months, all 3 rate a Buy on Synergy stock. The 12-month average price target stands at $13.00, marking a 137% upside from where the stock is currently trading.
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