Synergy Pharmaceuticals Inc (NASDAQ: SGYP) is headed up in the market this morning after news was announced with regard to the acquisition of the company’s assets. Of course, the news excited investors who are pushing the stock up. Today, we’ll talk about:
- The asset acquisition news;
- what we’re seeing from SGYP stock as a result; and
- what we’ll be watching for ahead.
SGYP Gains On Asset Sale News
As mentioned above, Synergy Pharmaceuticals is having a relatively strong day in the market today after news broke that the sale of assets to Bausch Health Companies (NYSE: BHC) has been completed.
In a release issued by BHC, the companies said that the transaction, including the acquisition of certain assets of SGYP, has come to a close. The transaction included a payment to the company in the amount of $195 million. Also, BHC has assumed certain liabilities.
The acquisition of assets was the result of a stalking horse agreement and resulting bankruptcy court approval. In a statement, Joseph C. Papa, Chairman and CEO at BHC, had the following to offer about the transaction with SGYP. Here’s what he had to say:
We are excited to welcome new team members from Synergy to join our Salix Pharmaceuticals business, a leader in gastroenterology. We believe that adding TRULANCE® to our portfolio and dolcanatide to our early pipeline will organically grow this core business for the Company. In 2019, Bausch Health will continue pivoting to offense with research investments and strategic acquisitions and alliances in our core businesses – therapeutic areas that will both drive Company growth and where we can have the biggest impact on the lives of the patients we serve.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Synergy Pharmaceuticals, the news proved to be positive.
The closing of the transaction puts the company a better financial footing when it comes to working toward growth ahead. While the deal wasn’t a very good one for investors, the stock seems to have already priced in the discount and investors are hopeful for the company’s future.
Considering this, it’s not so surprising to see that the stock is making its way for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:34), SGYP is trading at $0.062 per share after a gain of $0.0030 per share or 5.04% thus far today!
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What We’ll be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SGYP. In particular, we’re interested in following the story surrounding the company’s plans moving forward as it is basically starting from ground zero. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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