Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals is having a great day in the market today after releasing data from their second of two Phase 3 studies looking into the experimental drug plecanatide. Today, we’ll take a look at the details of the study results, how the market reacted, and discuss what we can expect to see from SGYP moving forward. So, let’s get right to it…
SGYP Plecanatide Phase 3 Results
Earlier this morning, Synergy Pharmaceuticals released top-line results from the second of two phase 3 clinical trials looking into two different treatment doses of plecanatide. The medication was given to 1337 adult patients with chronic idiopathic constipation; proving to be effective in treating the condition. Analysis of the data indicated that both doses, 3.0 and 6.0 milligram, met the study’s primary endpoint. Ultimately, plecanatide showed statistically significant positive results when compared to a placebo during the 12-week treatment period. Here’s what the CEO of Synergy Pharmaceuticals, Gary S. Jacob Ph.D., had to say upon the release of the data…
“We are thrilled with the positive results of this trial…We now have successfully completed the two largest phase 3 trials ever conducted in CIC and plecanatide’s treatment effect and tolerability profile have been remarkably consistent. We look forward to filing our first NDA with plecanatide in the CIC indication and the opportunity to bring this novel treatment to the market.”
How The Market Reacted
As I predicted in several posts leading up to the data release, Synergy Pharmaceuticals is climbing in the market as the study results proved to be a strong positive catalyst. Currently (12:30), SGYP is trading at $9.07 per share after a gain of 10.48% so far today.
What I’m Expecting To See Moving Forward
This is incredibly positive news for SGYP and its investors. With that said, I’m expecting to see strong bullish activity revolving around the stock in both the near and long term. However, it is important to remember that price movements in the market happen through a series of overreactions. With that said, we are likely to see a dip in the value of the stock tomorrow. If this does happen, don’t worry. As a matter of fact, it may be time to buy more. Ultimately, SGYP has proven that plecanatide is an effective treatment. As mentioned by the CEO, this will lead to the company’s first New Drug Application with the United States Food and Drug Administration; and considering the results of the study, I couldn’t imagine the NDA being met with a negative result. Therefore, plecanatide is likely to be the drug that puts Synergy Pharmaceuticals on the map as a profitable biotechnology company!
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!