Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals wasn’t having the best of days in the market today. In fact, the stock started the day off in the red and continued on a slow, yet steady decline throughout the trading session, closing the day in the red. However, we’re seeing a spike in after-hours. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to SGYP ahead.
What We’re Seeing From SGYP
As mentioned above, Synergy Pharmaceuticals didn’t have what anyone would consider to be a good day in the market today. When the trading session opened, the stock was trading slightly in the red. However, after slow, yet steady downward movement all day, the declines became something worth looking at. By the close of the day, the stock was trading at $6.41 per share after a loss of $0.12 per share, or 1.84%. However, in the first minutes of after-hours trading, the stock is spiking. At the moment (4:06), SGYP is trading at $6.85 per share after a gain of $0.44 per share (6.86%) thus far.
Why The Stock Is Spiking
As soon as our partners at Trade Ideas sent us the alert that SGYP was spiking, the CNA Finance team started working to see why. It didn’t take long for us to dig up this story, and it’s a big one. It seems as though the gains are being caused by news surrounding one of the New Drug Applications the company has been waiting on.
Minutes ago, it was announced that the United States Food and Drug Administration has approved Synergy Pharmaceuticals’ Plecanatide for the treatment of Chronic Idiopathic Constipation, also known as CIC. This approval is a massive milestone for the company, and investors are reacting. After all, this means that the company will now be able to move Plecanatide to the commercial stage.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SGYP. Now that the company has received the approval it needs, we’re interested in seeing what the next steps are. We’ll be following the news closely and bringing it to you as it breaks!
Update – SGYP has reversed in a big way on a severe diarrhea warning associated with approval.
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