Synergy Pharmaceuticals has been having a rough time in the market lately and the crash in the stock market didn’t make things much better. However, today Synergy Pharmaceuticals seems to be one of the stocks that is recovering from declines most quickly. And, in my opinion, it’s for a good reason. The reality is that there is plenty to be excited about in the case of SGYP. Below, we’ll talk about what we’re seeing from SGYP today as well as a few reasons that I believe that the stock is one to follow. So, let’s get right to it…
What We’re Seeing From Synergy Pharmaceuticals Today
After hours trading brought SGYP down quite a bit over the weekend. However, the bulls seem to be taking control today, pushing the stock closer and closer to the green. While SGYP did touch the green briefly earlier today, it fell back before gains continued. Currently (12:49), SGYP is trading at $6.92 per share; down 1.28% from its previous close. However, if morning trading is any signal, chances are that this stock will reach the green, and likely well past the green, by the end of the day.
Why Synergy Pharmaceuticals Is A Sound Investment
Synergy Pharmaceuticals has been having a rough time in the market recently, but that’s not necessarily a bad thing. As a matter of fact, because of the declines we’ve seen, investors can now get in on the stock at a discount – and there’s good reason to do so. If you follow SGYP, you know that the company is a pre-market biotechnology company with a very strong candidate. That candidate is plecanatide.
Plecanatide is a treatment designed for digestive disorders. For quite a while now, Synergy Pharmaceuticals has been working on testing plecanatide to prove that it is not only effective in the treatment of gastrointestinal conditions, but that it is well-tolerated among patients. Well, after the data from the last of two Phase 3 studies looking into the drug, plecanatide has been proven to be incredibly effective and well-tolerated among those who have been studied. As a matter of fact, chances of adverse side effects are slimmer with plecanatide than they are with the current market leader (Linzess).
As a result of the strong positive data realized through the clinical trials, Synergy Pharmaceuticals has announced that their next step will be to submit a New Drug Application to the United States Food and Drug Administration for the treatment. While this is likely to be a strong positive catalyst, gains aren’t likely to stop there. Considering the strong data we’ve seen from the plecanatide clinical trials, it’s hard to imagine a case where the FDA will turn down the treatment, so I’m expecting to see approval once the NDA is reviewed.
All in all, plecanatide is likely to hit the market and become the goose that lays the golden egg for SGYP and its investors. However, it’s important to remember that anything having to do with the FDA takes quite a bit of time. So, while we’re likely to see steady gains, the big movement in the stock may be a year away.
What Do You Think?
Where do you think Synergy Pharmaceuticals is headed and why? Let us know your opinion in the comments below!