Synergy Pharmaceuticals Inc (NASDAQ: SGYP)
Synergy Pharmaceuticals is having an incredible day in the market today, and for good reason. The company received incredible news from the FDA with regard to its lead candidate. Today, we’ll talk about the news that was received from the FDA, how the market is reacting to the news, and what we can expect to see from SGYP moving forward. So, let’s get right to it…
SGYP Receives Great News From The FDA
Synergy Pharmaceuticals has been working on a drug known as Plecanatide for quite some time now. In fact, I remember when the company released the results from its Phase 1 study looking into the treatment. At that time, I was incredibly excited with regard to what we would see from the treatment, and now, it seems as though all of the effort that SGYP put into the treatment is going to pay off. The company received news today that its New Drug Application with the United States Food and Drug Administration has been accepted for the indication of chronic idiopathic constipation. According to some analysts, Plecanatide is likely to change the game for consumers dealing with this debilitating disease.
At the moment, the NDA filed by SGYP is undergoing a key review process. In general, these reviews take about 10 months. So, Synergy will find out if Plecanatide will be approved no later than January of 2017. However, after following the clinical trials on the treatment, I couldn’t imagine a scenario under which Plecanatide gets declined… that is, as long as the company was honest with regard to the releases of data following each clinical study surrounding the drug.
How The Market Reacted To The News
As investors, one of the first things that we learn when we get started in the market is that it’s important to watch the news. After all, the news moves the market. Any time there is positive news released with regard to a publicly traded company, we can expect to see gains in the value of the stock as a result. Adversely, when negative news is released with regard to a publicly traded company, we can expect to see declines in the value of the stock associated with the news. In this particular case, the news released with regard to SGYP was overwhelmingly positive. So naturally, we’re seeing an overwhelmingly positive reaction in the market today. Currently (12:11), SGYP is trading at $3.63 per share after a gain of $0.30 per share or 9.01% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Synergy Pharmaceuticals. The reality is that the incredibly positive news released with regard to Plecanatide is likely to keep the stock moving in the upward direction for quite some time. However, that’s not the only reason I’m bullish on the stock. Plecanatide also seems to be a positive treatment for irritable bowel syndrome with constipation, so we may see an NDA for that indication soon as well. On top of that, Plecanatide isn’t the only treatment currently in the SGYP pipeline. In fact, for a clinical stage biotechnology company, Synergy has a very impressive pipeline in the works. All in all, I’m excited for the future of the company and the treatments that it is working to bring to the market. I see no reason to expect declines at the moment.
What Do You Think?
Where do you think SGYP is headed moving forward and why? Let us know your opinion in the comments below!