Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals has been a very interesting stock to watch as of late. While the stock has been declining, we did see a nice bullish push just a couple of days ago, and for good reason. SGYP recently submitted a New Drug Application to the United States Food and Drug Administration. Today, we’ll talk about the NDA submission, what we’re seeing from the stock today, and why now is likely a great time to buy!
Trade smarter and make more money with Tradespoon!
SGYP Submits It’s First Plecanatide NDA
Early this week, it was announced that Synergy Pharmaceuticals had submitted an NDA to the United States FDA for a drug that it has been working on for quite some time. The drug, plecanatide, was designed to treat gastrointestinal ailments. Over the past couple of years, we have watched SGYP go through various clinical trials surrounding plecanatide, specifically for the indication of treating chronic idopathic constipation, also known as CIC. The studies have shown that not only is plecanatide safe and well-tolerated, it is also incredibly effective in treating CIC. As a result, SGYP announced a short while ago that it would be submitting an NDA to the FDA, and early this week they did. The NDA has now been submitted for plecanatide as a treatment for CIC. With regard to the New Drug Application, CEO and Chairman at Synergy Pharmaceuticals, Gary S. Jacob, Ph.D, had the following to say:
“The submission of the plecanatide NDA for CIC marks a major milestone for Synergy as we move the product candidate another step closer to potential approval early next year… I want to thank the Synergy team, our many advisors and my board of directors for their relentless efforts, enthusiasm and commitment in bringing plecanatide, a drug candidate which we invented in-house and developed entirely on our own, to this important milestone. We remain completely focused on flawless execution in 2016, with the ultimate goal of potentially providing patients and their healthcare providers a new treatment option for this very debilitating disease.”
What We’re Seeing In The Market Today
While SGYP climbed in a big way following the announcement, the stock is correcting at the moment, bringing the value down to a more sustainable rate. Currently (11:12), SGYP is trading at $3.31 per share after a loss of $0.13 per share or 3.78% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see overwhelmingly bullish movement from SGYP. In fact, I believe that now is likely a great time to enter a position in the stock. The reality is that plecanatide has proven to be an incredibly effective treatment for CIC in clinical trials. In fact, I’ve been following the trials since Phase 1. Because the treatment has proven to be so effective, I’m expecting that FDA approval should come down the line early next year. Between now and then, we will likely see slow and steady gains. However, when that approval comes down the line, we are going to see the stock skyrocket. Considering the fact that recent declines brought the price of the stock down to $3.31 per share, SGYP is trading at an incredible discount in my opinion. All in all, everything seems to be pointing to growth from the stock both in the short and long term.
Don’t waste your time! Click here to find winning trades in minutes!
What Do You Think?
Where do you think SGYP is headed moving forward? Let us know your opinion in the comments below!
[Image Courtesy of Flickr]