Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals is declining today in the market. However, there is some very positive news revolving around the stock. Today, SGYP announced that they have initiated the second of two very important phase three clinical trials aimed at evaluating the efficacy and safety of two different plecanatide treatment doses. Today, we’ll talk about the new study, what we’re seeing in the market, and why I’m not at all concerned about today’s declines on the stock. So, let’s get right to it!
Synergy Pharmaceuticals Initiates Second Phase 3 Study Of Plecanatide
The second phase 3 study of plecanatide is a double-blind, placebo-controlled trial that’s being conducted in the United States. The study is expected to enroll about 1050 adult patients that suffer from irritable bowel syndrome with constipation (IBS-C). The study will last 12 weeks and will determine the effectiveness and safety in treating patients with IBS-C.
What We’re Seeing From SGYP In The Market Today
While SGYP did announce the initiation of the second of two Phase 3 studies into their drug, their stock is not doing so hot today. Currently (11:40), Synergy Pharmaceuticals is trading at $8.01 per share after a loss of 3.18% so far today. However, as I mentioned in yesterday’s post, I’m really not concerned about the declines. In all reality, the declines we’re seeing from Synergy Pharmaceuticals stock are nothing more than normal market activity.
As an investor or trader, it’s important to understand that price movements in the market are a series of overreactions; and Synergy Pharmaceuticals stock recently went through a big price movement. After announcing the results of their last study into Plecanatide, the company’s stock skyrocketed for several days. However, as we generally see, the stock was pushed too high, too fast. In order for it to grow further, it needed to correct; which is what we’ve been seeing so far this week. Nonetheless, with all of the positive news coming out around SGYP, I couldn’t imagine a scenario where the declines would last for the long run.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see overwhelmingly positive news from SGYP in both the short term and long term outlooks. Here’s what I’m expecting to see…
- Short Term – In the short term, we’re likely to see more declines throughout today. This should bring SGYP down to a level of support; causing investors to start pushing it back up. So, look for support as a great entrance opportunity.
- Long Term – In the long run, Synergy Pharmaceuticals stock is destined for greatness in my opinion. The company has proven the concept with regard to plecanatide and is getting closer and closer to FDA approval. Considering the past results that we’ve seen from the drug, I can imagine that this one will be a big hit for those with IBS-C and will be incredibly profitable. Also, with strong management and a strong team behind them, fundamentally, SGYP is a solid investment.
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!