Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals stock is quickly becoming one of my favorites in biotech. Last week, the stock saw explosive growth after announcing the data from their most recent study of plecanatide; an experimental drug developed for the treatment of irritable bowel syndrome with constipation (IBS-C). The study results showed that not only was plecanatide effective, only 6% of patients treated with the drug experienced diarrhea; an incredibly low figure considering that the current market leader causes diarrhea in about 16% of the patients that take it. However, we’ve seen declines from the stock this week; even today after the company announced the initiation of the second Phase 3 study into the drug. Today, we’ll talk about the second study’s initiation, what we’re seeing from the stock, and whether or not we can expect to see gains from SGYP any time soon. So, let’s get right to it…
The Second Phase 3 Study Is now Under Way!
The second phase 3 study into the effectiveness of plecanatide is going to test a new dose of the medication. The study is a double-blind, placebo-controlled trial that’s set to be conducted in the United States. It is expected that around 1050 adult patients that suffer from IBS-C will enroll into the 12 week study of the medication.
What We’re Seeing From Synergy Pharmaceuticals Stock Today
While we tend to see gains on positive news, that’s not exactly what we’re seeing from SGYP after the announcement of the initiation of the study. Unfortunately, the stock is continuing the declines that we saw yesterday. Currently (2:40), SGYP is trading at $8.19 per share after a loss of 0.97% so far today. However, I’m not concerned…here’s why…
Why SGYP Is Setting Up For Long Term Growth
When it comes to Synergy Pharmaceuticals stock, I’ve got an overwhelmingly bullish opinion; even in the face of the declines we’ve seen throughout today and yesterday. Here’s how I see everything happening…
- Short Term – In the short term, I’m expecting to see very nice gains from SGYP. One thing that’s incredibly important to remember here is that we saw incredible growth last week. Given the fact that price movements in the market happen through a series of overreactions, it’s not surprising that even in the face of positive news, the stock is declining. The reality is that it needed to correct a bit before investors felt comfortable pushing the stock up even more. Nonetheless, it seems as though that correction has happened; so I’m expecting to see great things from SGYP by the end of this week.
- Long Term – Synergy Pharmaceuticals have proven time and time again that they are a great company with great management. Now, thanks to recent plecanatide data, it looks like they’ve got a great product coming; one that will most likely fly through FDA approval with no problem. So, I’m expecting to see long-term gains from the stock as a result.
What Do You Think?
Where do you think SGYP is headed and why? Let us know in the comments below!