Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals is an incredibly interesting stock to watch, and for good reason. The company is in the experimental stages with a very interesting candidate. Not to mention that the company is also a great acquisition target for many. All in all, it seems as though this stock is going to explode, bringing great value to its investors. Today, we’ll talk about plecanatide, why SGYP is a perfect acquisition target, and what I’m expecting to see from the stock moving forward. So, let’s get right to it…
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Plecanatide Could Be The Golden Egg Laying Goose For SGYP!
If you’re talking about Synergy Pharmaceuticals and you’re not talking about plecantide, well, something’s wrong! The truth is that the value of the company is nested largely in this experimental treatment.
Plecanatide is a treatment that is designed to treat gastrointestinal conditions. Things like constipation, irritable bowel syndrome, and more. The data that SGYP has released with regard to plecanatide has been overwhelmingly positive.
In fact, the company is currently awaiting the results of its first ever new drug application with the FDA. The application surrounds plecanatide as a treatment for a condition known as Chronic Idiopathic Constipation, or simply CIC. After watching the data that SGYP has released with regard to clinical trials testing the effectiveness and safety of plecanatide in this indication, I’m expecting to see positive news. At the end of the day, the data shows that plecanatide is a significantly superior treatment when compared to the standard of care that patients with the condition receive today. So, in January, we will be receiving an answer from the FDA. I’m expecting the answer to be, “Yes, plecanatide has been approved!”
Wait! There’s More!
Sticking to the topic of plecanatide, the current new drug application in with the FDA isn’t the only reason to be excited. In fact, Synergy Pharmaceuticals is currently in the late stages of testing the treatment for another indication.
Currently, there are two ongoing Phase 3 studies looking into plecanatide as a treatment for irritable bowel syndrome with constipation, also known as IBS-C. The previous studies surrounding this indication have been overwhelmingly positive. Not to mention, the conditions relation to CIC, for which plecanatide has already been proven to be effective, is incredibly strong. As a result, I’m expecting the results of the ongoing phase 3 studies to be overwhelmingly positive.
Is An Acquisition Coming?
So, we’ve come to the conclusion that plecanatide is incredibly valuable for SGYP and its shareholders. However, that’s not the only reason that I maintain a bullish stance on the stock. The truth is that, not only is the company likely going to see approval from the FDA soon, it’s also a great candidate for an acquisition.
At the moment, there are several companies that would benefit greatly by acquiring the company. Not to mention, if they want to do so, they’re going to need to do it quickly. The reality is that other companies are seeing the value of plecanatide and likely want in. However, if they want a good deal on the acquisition, they’ll want to act before the FDA responds in January. As a result, we could see big news in the very near term.
The Bottom Line
The bottom line here is that SGYP is a great stock to own at the moment. The company has made all the right moves when it comes to the development of plecanatide, and it’s likely going to reap the rewards of doing so. That is, if they don’t get acquired first, which would also be overwhelmingly positive. All in all, I’m expecting to see big gains out of Synergy Pharmaceuticals moving forward.
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What Do You Think?
Where do you think SGYP is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!
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