\Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
If you have followed my work here or elsewhere, you know that I’ve been tracking Synergy Pharmaceuticals for quite some time now. The bottom line is that when we talk about Synergy, we’re talking about a strong company with a strong stock; and the price action we’ve seen over the past few trading sessions has proved it. Today, we’ll talk about what we’ve seen from SGYP lately as well as what we can expect to see from the stock moving forward. So, let’s get right to it…
SGYP’s Start To A Bullish Run
One of the biggest reasons that I get so much joy out of following biotechnology stocks is the innovations we’re seeing in medicine. As a matter of fact, that innovation is what started the bullish run for Synergy Pharmaceuticals stock in the first place. On June 16th, the company announced the results of their most recent study looking into the experimental drug plecanatide. Plecanatide is expected to help those with Irritable Bowel Syndrome with Constipation (IBS-C). In their most recent study, Synergy Pharmaceuticals proved that not only is the drug efficient in treating the condition, it has less chances of causing diarrhea than the current industry leader. As a result of the positive news, SGYP gained in a big way!
The Bullish Run Hits Turbulence
Following the news, as we tend to see anytime we see big gains, there was a bit of a correction. As a matter of fact, we saw slow and steady losses from SGYP for more than a week after the gains. It’s also important to mention that a natural correction wasn’t the reason for all of the losses. At the same time, the Greek Debt Crisis was spiraling out of control; striking fear in the hearts of investors and sending markets around the world into a bearish run. However, while the Greek Debt Crisis is still a major issue in Europe, it doesn’t seem to be affecting the stock anymore.
What We’ve Seen From Synergy Pharmaceuticals Lately
Starting on June 29th, Synergy Pharmaceuticals began to see gains after reaching support at $7.84 per share. Since then, we’ve seen an incredible climb as the stock continues to follow a bullish path. Currently (7.6.2015 12:25), SGYP is trading at $9.44 per share after a gain of 1.72% so far today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting the bull run to continue in both the short term and long term outlooks. Here’s how I see it…
- Short Term – In the short term, investor excitement should continue to push this stock up. While we may see a bit of a pull-back tomorrow, I think that SGYP is going to end the week strong!
- Long Term – In the long run, I’ve also got a very bullish opinion of Synergy Pharmaceuticals. Currently plecanatide is in the second of two Phase 3 studies; which will come to an end in just a couple of months. From there, we should start to see movement toward FDA approval of the drug; which will be a catalyst leading to more gains. With strong management, a strong team, a great product and positive investor sentiment, SGYP is incredibly strong fundamentally. This should lead to big gains over the long run.
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!