Synergy Pharmaceuticals, Inc. (SGYP) Secures Industry Foothold with Promising Pipeline

Biotech company Synergy Pharmaceuticals centers its efforts on the development of drugs for the treatment of gastrointestinal (GI) disorders and diseases. The company has two compounds in development and recently acquired from Bristol-Myers Squibb the assets to FV-100 for the treatment of shingles.

Synergy’s lead investigational drug is plecanatide for the treatment of chronic constipation. The company recently signed an agreement with Ironwood Pharmaceuticals for an exclusive worldwide license patent to Ironwood’s method of use patents on plecanatide and has completed enrolment for a phase 2b/3 trial testing of the candidate. Synergy expects to use the December-scheduled results as support for seeking FDA approval.

Synergy last month filed an Investigational New Drug Application with the FDA for the clinical evaluation of its second drug candidate SP-333 for inflammatory bowel disease. The company is slated to begin clinical trials of SP-333 in the last six months of the year.

Because it does not have a commercial-ready product, the company has yet to report revenues. Synergy posted a net loss of $10.5 million for the three months ended June 30, 2012, vs. a loss of $4.5 million for the same quarter of the year prior.

Regardless, shares of the company are up 27% year-to-date and a Cantor Fitzgerald analyst recently initiated coverage on the stock with a “buy” rating. Analyst Irina Rivkind cited favorable potential for Synergy’s plecanatide and suggested that the company could become an acquisition target if the drug candidate produces positive results in December.

For more information visit www.synergypharma.com

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