Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals has been an incredibly interesting stock to watch recently. After releasing positive results from the second phase 3 study of Plecanatide, we recently saw massive gains in the stock. However, since then, we’ve seen ups and downs, but no real, lasting movement in either direction. Today, we’ll take a look at the stock’s chart to see if it gives us any clues. We’ll also take a look at fundamental factors in an effort to determine what we can expect to see moving forward. So, let’s get right to it…
The SGYP Chart Seems Primed For Take-Off!
Looking at the chart above, a few things become incredibly clear. First off, on July 30th, Synergy Pharmaceuticals had an incredible run toward the top. However, since then, we’ve seen choppy movement in both directions. As a result of the movement we’ve seen over the past week, a very familiar shape is starting to make itself apparent in the chart; a flag. Flags are signs for technical traders that a breakout is coming soon. If the flag is right side up, chances are stronger for a bullish breakout than for a bearish breakout; as is the case here. With that said, speaking purely from a technical standpoint, it seems as though SGYP is gearing up for strong gains.
Synergy Pharmaceuticals Is Also Very Strong Fundamentally
While the SGYP chart is insinuating that we can expect to see a breakout some time soon, that’s not the only positive piece of data we have about the stock. As a matter of fact, just about everything I’ve come across from a fundamental standpoint has been positive; and it all surrounds plecanatide…
- Primary Endpoint Met – As mentioned above, we recently heard from Synergy Pharmaceuticals that their phase 3 study of plecanatide met its primary endpoint; ultimately proving a statistically significant improvement over the current market leader, linzess.
- No Major Side Effects – The study also proved that there were no major side effects and very few minor side effects for patients to worry about. Also, while doctors and scientists may not be concerned about weight gain, patients will be; and plecanatide proved not to come with the weight gain side effect experienced by patients using linzess.
- NDA Coming Soon – Upon the release of the data, Synergy Pharmaceuticals’ CEO explained that the next step will be to work with the FDA for the submission of a new drug application; the first in SGYP history. This is likely to prove to be a strong positive catalyst.
So, there you have it, no matter how you look at Synergy Pharmaceuticals things are looking great. While we are seeing declines today, I think that those declines are going to prove to be a great time to get in on gains at a discount.
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!