Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals is having an incredible day in the market today, and for good reason. Earlier this morning, an acquisition rumor was announced. The reality is that there’s nothing that can cause movement in the market quite like mergers and acquisitions, and we’re definitely seeing movement surrounding SGYP today. Below, we’ll talk about the acquisition rumors, how the market is reacting to the news, whether or not an acquisition is likely on the horizons, and what we can expect to see from SGYP moving forward. So, let’s get right to it…
SGYP Is Rumored To Be Considering An Acquisition
As mentioned above, there’s nothing that gets investors excited quite like rumors with regard to mergers and acquisitions. Earlier today, I noticed that the news sources were flooded with rumors with regard to an acquisition surrounding SGYP. According to the rumors, management at Synergy Pharmaceuticals is considering the sale of the company. The reality is that at this point, the company is going to need to do something to pick up its stock price. After all, in less than a year, we’ve watched as about 70% has been shed off of the company’s stock price. With the company’s investigational new drug, plecanatide, currently under FDA review, now would be a great time to get a decent price if the company does decide to sell.
How The Market Is Reacting To The News
As investors, we know that any time there is news released with regard to a publicly traded company, we can expect to see movement in the market. Positive news leads to gains and negative news leads to losses. Based on what we’re seeing in the market today, investors are excited about the prospect of an acquisition at SGYP. After all, when companies are acquired, we generally see a decent value given to the company when compared to the current stock price. So, an acquisition would likely give SGYP investors a significant return on their investment. As a result, the stock is climbing at the moment. Currently (12:04), Synergy Pharmaceuticals is trading at $3.06 per share after a gain of $0.17 per share or 5.73% thus far today.
Is An Acquisition Likely?
As mentioned above, Synergy Pharmaceuticals has seen the price of its stock fall by around 70% over the past several months. With that said, to provide its current investors with a strong return, the company is going to need to do something. Of course, waiting until the FDA returns with its verdict with regard to plecanatide is an option, but there’s no guarantee that the treatment will be approved, and if it’s not, the stock will tank even more. As such, it seems as though looking for a buyer is the best option for the company at the moment. Nonetheless, there are other options and nothing is set in stone until there is actually an acquisition agreement signed.
What We Can Expect To See From SGYP Moving Forward
Moving forward, I have a relatively bullish expectation with regard to what we can expect to see from SGYP moving forward. First and foremost, if the company does sell, we’re likely to see incredible gains. However, even if it doesn’t, I have faith in the concept that plecanatide will hold the company above water. The reality is that this one treatment could send the valuation of SGYP skyrocketing. After watching trials closely, I couldn’t imagine why it wouldn’t be approved. All in all, in my opinion, things are looking great for SGYP.
What Do You Think?
Where do you think SGYP is headed moving forward and why? Let us know your opinion in the comments below!