Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals is seeing strong growth; a continuation of momentum caused by yesterday’s big announcement that plecanatide met the primary endpoint in the second of two phase 3 studies. Today, we’ll take a look at the movement we’re seeing in the market and talk about what we can expect to see from the stock moving forward. So, let’s get right to it…
What We Saw From SGYP Yesterday
Yesterday, Synergy Pharmaceuticals saw massive growth in early morning trading after the release of data from the plecanatide study. However, after reaching a peak price of $9.40 per share, the stock slowly declined; settling at support at $8.42 per share; well above the previous close at $8.20.
What We’re Seeing From SGYP Today
Today is proving to be another great day for SGYP. The stock started running as soon as the gates opened; leaving support at $8.42 behind and headed for the top. Currently (11:02), SGYP is trading at $9.04 per share after a gain of 5.42% so far today.
What We Can Expect To See Throughout The Day
I’m expecting to see a continuation of yesterday’s growth from SGYP today. However, it’s important to remember the premise that history often repeats itself. With that said, today, the big number is $9.40. That’s because $9.40 was where SGYP was met with resistance yesterday. So, when we get close to this point, we can expect to see slowing in the growth as investors try to figure out whether or not we’re likely to see another breakout. If the stock does break above the $9.40 per share mark today, we can expect to see even more of a rally following the event.
What To Expect From Synergy Pharmaceuticals In The Long Run
In the long run, I’ve got overwhelmingly bullish expectations for Synergy Pharmaceuticals stock. The reality is that the plecanatide study went incredibly well; and following the strong phase 3b results, the company is planning on an NDA submission in the near future. In the world of biotech, these types of things tend to be catalysts that lead to strong growth in the stock the events are represented by. There’s also been quite a few rumors of a potential buy out in the near future. Many in the SGYP circle on Stock Twits are expecting a buyout before the submission of the NDA. However, Synergy Pharmaceuticals hasn’t yet commented on the rumors; so, for now, any talk of a buyout is simply speculation. Nonetheless, it would make sense for an acquisition to take place. So, we’ll want to keep an eye out for any developments there as a buyout offer would likely send Synergy Pharmaceuticals soaring in the market. Nonetheless, whether or not a buyout happens, I’m expecting to see strong growth in the long run. So, it may be time to start looking for dips in the value of the stock as they are likely to represent incredibly profitable buying opportunities.
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!