Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals climbed nicely following the release of information regarding a recent gastrointestinal study. Following the release of the data, the stock climbed in a big way yesterday, and today, it looks like the climb is continuing. So below, we’ll discuss the results of the study that have investors so excited, what we’ve seen in the market so far as a result, and what we can expect to see from SGYP moving forward. So, let’s get right to it…
SGYP Releases Positive Gastrointestinal Results
Wednesday morning, Synergy Pharmaceuticals provided the results of a gastrointestinal study that focused on the effectiveness of placenatide at a 3 milligram dose for the treatment of constipation. The results that were released were incredibly positive; showing that less than 6% of patients that were given placenatide through the study experienced diarrhea as a side effect. This figure came in lower than analysts expected and beat Linzess; which causes about 16% of patients to experience diarrhea.
How Synergy Pharmaceuticals Stock Reacted To The News
As we can expect any time positive news comes out about a biotech company, SGYP had a great day in the market yesterday; gaining well over 50% in a single day. Now, it seems like the climb isn’t over quite yet as excited investors continue to push the stock higher and higher. Currently (10:57), Synergy Pharmaceuticals is trading at $8.28 per share after a gain of 6.43% so far today and is showing no signs of a coming reversal.
What We Can Expect From SGYP Moving Forward
Moving forward, I’m expecting to see more bullish activity out of the stock, both in the short and long term outlooks. Here’s what I see happening moving forward.
- Short Term – In the short term, today is likely to end relatively strong. While we might see a bit of a pull back tomorrow, it’s not something that I would personally be concerned about. Generally, after massive gains like what we’ve seen, the stock will correct before moving forward with more gains. So, if we see a pull back later today or tomorrow, it’s most likely going to prove to be an opening door to an incredible opportunity as the stock is likely to continue climbing for some time.
- Long Term – In the long run, I’m also expecting to see bullish activity overall from SGYP. First of Placenatide results were great; and as we all know in biotech, positive study results tend to lead to massive gains. With less chances of a side effect than the leading Linzess, placenatide will likely prove to be an incredibly profitable drug. Also, with strong management and an incredibly talented team of doctors and scientists, I’m expecting to see more positivity from SGYP.
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!