Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals is having an incredibly rough day in the market today. Unfortunately, this is following up on the declines that we saw on Friday following the company’s approval from the FDA for Trulace (Plecanatide). Below, we’ll talk about what we’re seeing from SGYP, why, and what we’ll be watching for ahead.
What We’re Seeing From SGYP
As mentioned above, Synergy Pharmaceuticals isn’t having the best of days in the market today. In fact, when the opening bell rang, the stock was already trading well in the red. From there, we’ve seen a continuation of declines, bringing it’s value further and further into the abyss. At the moment (10:57), SGYP is trading at $5.58 per share after a loss of $0.33 per share or 5.58% thus far today.
Why The Stock Is Falling
This is a bit of a tricky one. As mentioned above, SGYP hasn’t done well in the market since Friday, when it was learned that the company had achieved FDA approval for Trulace (plecanatide). The approval was for the treatment of Chronic Idiopathic Constipation. In most cases, FDA approvals cause stocks to climb. However, in this particular case, that’s not what we’ve seen.
Ultimately, while the treatment was approved, there is one thing that’s proving to be concerning for Synergy Pharmaceuticals investors. Unfortunately, while the company has achieved approval, there’s a warning that comes with the approval. Some patients may experience severe diarrhea, and that will have to be part of the warning label on the treatment. In a statement, Julie Beitz, M.D., director of the Office of Drug Evaluation III in the FDA’s Center for Drug Evaluation and Research had the following to say about the SGYP approval…
“No one medication works for all patients suffering from chronic gastrointestinal disorders… With the availability of new therapies, patients and their doctors can select the most appropriate treatment for their condition.”
What We’ll Be Watching For Ahead
First and foremost, I would like to put it out there that I believe that concerns surrounding warning labels that will be used on Trulace are well overblown. In fact, the strongest treatment on the market at the moment has the same warning label, but didn’t perform quite as well on the efficacy side as Trulace. With that said, moving forward, the CNA Finance team is eager to learn about sales reports to see how the company does with regard to commercialization. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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