Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals has been the talk of the town recently. After data from a recent plecanatide study was released, the stock climbed dramatically last week. However, we saw declines Monday and Tuesday; leading investors to ask, “When will this stock pop back up?” As I mentioned in yesterday’s post, I really wasn’t concerned about the declines as they signified normal market movement. Nonetheless, as predicted, SGYP is back up today; and in a big way. So today, we’ll talk about what’s pushing the stock up and what we can expect to see from SGYP in both the short and long term outlook.
What’s Causing Synergy Pharmaceuticals Stock To Climb
In my personal opinion, there’s not one reason for this climb, there’s three. Here they are…
- Technical Traders Getting Excited – From a technical standpoint, stock traders will look for pull-backs that reach support. This gives them an opportunity to get in on uptrends at a low cost. After two days of pull-backs investors felt as though the stock was undervalued and profit was imminent. As a result, we’re seeing the stock rise today.
- Plecanatide Study Data – Beyond technical data, there’s still plenty of reason to invest in Synergy Pharmaceuticals. For example, the reason for the big climbs we saw last week had to do with study data from plecanatide. The recent Phase 3 study showed that the drug was not only effective in treating irritable bowel syndrome with constipation, it has less of a chance of causing diarrhea than today’s market leader!
- Plecanatide New Study – At the beginning of Phase 3, we heard that Synergy Pharmaceuticals would be doing two studies; determining the efficacy and safety of the medication in different doses. Well, the second study was initiated yesterday; meaning that SGYP is getting plecanatide closer and closer to FDA approval.
What We Can Expect From SGYP Moving Forward
Moving forward, I’m expecting to see positive news from Synergy Pharmaceuticals in both the short and long term view. Here’s what I expect to see happen…
- Short Term – In the short run, get ready for more big gains. On a technical level, those with short interest brought this stock way down over the past two days; so, it’s got plenty of potential for upside growth. Keep in mind that pull backs are common; and may be your ticket to get in on the profits at an incredibly low cost.
- Long Term – In the long run, I’m also expecting to see incredibly bullish activity. First off, I’m very impressed with the results of plecanatide thus far; and think that the drug will become even more impressive after the release of data from the study that was initiated yesterday. Also, Synergy Pharmaceuticals has demonstrated the fact that they have strong management and a strong core team time and time again. I’d imagine that these factors would lead to long term growth.
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!