Synergy Pharmaceuticals Inc (NASDAQ: SGYP) is having an incredibly rough day in the market. However, some analysts are saying that this is the time to buy. Oppenheimer, in particular, believes that buying on the weakness is a good idea. Before we get into the story, we'd like to thank our friends at Trade Ideas for being the first to alert us to the movement. At the moment (10:19), SGYP is trading at $3.20 per share after a loss of $0.33 per share or 9.35% thus far today.
Oppenheimer Says Buy SGYP On Weakness
As mentioned above, today hasn't been the best of days for Synergy Pharmaceuticals thus far. However, if you listen to Oppenheimer, today is a great day to buy the stock. Early this morning, Oppenheimer Analyst Derek Archila reiterated the Outperform rating placed on the stock after sales of Trulance came in stronger than expected in Q2. In fact, sales came in around $2.3 million while analysts were expecting sales to be about $2 million in the quarter. In a statement, Archila had the following to offer:
“...after our follow-up with management, we continue to be encouraged on the Trulance launch, particularly the work SGYP has done on the managed care front this early in launch which should benefit them in 2018. Additionally, we believe the fact ~50% of patients on Trulance are new to branded treatments means Trulance's differentiation is resonating with physicians and they are choosing Trulance over other brands. While the stock is likely to be volatile due to SGYP's capital overhang, we would be buyers on any weakness around a share offering or post financing.”
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SGYP. In particular, we're interested in following the ongoing work surrounding sales of Trulance, as the treatment seems to be picking up at a faster rate than expected. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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