Shares in innovative biopharma Synergy Pharmaceuticals Inc (NASDAQ:SGYP) are rising 3% to $2.06 in today’s trading on the news that the company has appointed a new CEO. Troy Hamilton, who has worked at Synergy since July 2015 will now take the head position effective immediately. He is replacing Synergy co-founder Gary S Jacob who will focus his efforts as executive chairman of the board of directors.
Mr Hamilton was responsible for the company’s commercialization infrastructure and strategy for the launch of its first product, Trulance. With the exception of a slow September, the drug is currently enjoying positive momentum in the treatment of CIC- chronic idiopathic constipation. However, Trulance has also been submitted for review by the US Food and Drink Administration (FDA) to treat another digestive disorder: IBS-C (irritable bowel syndrome with constipation). Investors are anxiously awaiting the crunch date of January 24 (the PDUFA date), which is when the FDA will reveal whether the application has been approved or rejected.
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“We believe the investments we have made, along with the continued execution of our commercial strategy, have allowed us to drive early customer demand for TRULANCE in CIC and achieve expanded market access heading into 2018. We expect to build on this momentum as we move towards the PDUFA date for TRULANCE in IBS-C on January 24, 2018 and look to accelerate further growth” says Hamilton.
First, Hamilton plans to work with CFO, Gary Gemignani, to refine the company’s business plan and achieve further cost efficiencies. He wants to make savings throughout the company- but not at the expense of investments that can drive Trulance growth. In the words of Hamilton: “As we move into 2018, we will continue to evaluate all strategic and business development opportunities to maximize the value of TRULANCE and leverage our commercial infrastructure.” Ultimately his key goal is to deliver long-term value for patients, healthcare providers and shareholders.
Overall, TipRanks reveals that Synergy is a top stock to track right now. In the last three months, five analysts have published buy ratings on the stock- giving it a ‘Strong Buy’ analyst consensus rating. Meanwhile the average analyst price target of $8.60 stands at a whopping 332% upside from the current share price.
These analysts are optimistic about the outcome of the FDA review for Trulance. If the drug is approved for IBS-C, Synergy is looking at a significant growth opportunity in a second lucrative market. Indeed, recent data shows that the markets for both CIC and IBS-C are growing, boosted by an ageing population. For example, the market for CIC is expected to almost double by 2025.