Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals has been a very interesting stock to watch recently. After climbing a couple of weeks ago on positive news from a plecanatide study, the stock started to correct. Then, the Greek Debt Crisis struck fear in the hearts of investors; sending SGYP down even further. However, I have remained confident that this is a great stock that is gearing up for growth; and I’m glad I did. Today, Synergy Pharmaceuticals stock is up in a big way. Now, the question is… “Can the growth last?” In my opinion, the answer is “Yes!” Today, we’ll talk about why SGYP is on the rise and why I expect to see continued growth from the stock. So, let’s get right to it.
Why SGYP Is Climbing In The Market
While there’s no way to pinpoint the direct reason or reasons for any climb in the stock market, I think that there are two major contributing factors in this case. Here they are…
- Plecanatide – As mentioned above, Synergy Pharmaceuticals recently released results from a study that looked into Plecanatide. The study results released were overwhelmingly positive; proving that Plecanatide wasn’t only effective for those suffering from irritable bowel syndrome with constipation, it also showed that the chance of having diarrhea as a side effect was less likely than with the current market leader. Also, there is one more phase 3 study that the company plans to perform before sending the NDA off to the FDA. SGYP recently announced that they have initiated that study.
- Overall Market Recovery – It’s also important to note the fact that the market overall is starting to recover. As Greece got closer and closer to the deadline with their debt crisis, financial markets around the world felt the pain. However, as investors started to consider the fact that the Federal Reserve isn’t likely to raise rates in the midst of worldwide financial turmoil, stocks started to bounce back up. With that said, a bit of the drastic growth we’ve seen can be attributed to the recovery from the crisis.
Why I Believe SGYP Is A Great Long Term Investment
Any time we see large gains in the market, one of the first questions investors ask is “will the gains last?” In my opinion, I think they will. Here’s why.
- Plecanatide – First off, plecanatide is proving to be a very strong candidate for the treatment of IBS-C. Considering previous study results, I’m expecting to see more positivity from the second Phase 3 trial of the drug. Therefore, the results will likely be a catalyst. Also, given the strong performance of the drug so far, I’d imagine that it will have no problem making it through FDA approval and becoming incredibly profitable for SGYP.
- Management & Team – As with any company, Synergy Pharmaceuticals is only as strong as the management and team it represents. With that said, I’m incredibly impressed with the management. Also, the team of doctors, scientists, and more that SGYP represents is one of the strongest teams in biotech today. This is likely to lead to growth.
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!