Morgan Joseph Starts Synergy Pharmaceuticals (SGYP) at Buy; Cracking Chronic Constipation
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Price: $5.02 -3.28%
Rating Summary:
7 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 24 | New: 24
Rating Summary:
7 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 24 | New: 24
Trade SGYP Now!
Morgan Joseph initiates coverage on Synergy Pharmaceuticals (OTCBB: SGYP) with a Buy. PT $15.
Morgan analyst says, "We believe Synergy represents a unique investment opportunity in the gastrointestinal (GI) disorders space, targeting a significant unmet medical need with a novel, safe, and effective drug...The current market for chronic constipation (CC) and constipation-predominant irritable bowel
syndrome (IBS-C) is substantial, with over 100mm people estimated to suffer from these disorders in the U.S., Europe, and Japan - We believe this creates a compelling opportunity for firms like Synergy, since plecanatide is based on a naturally-occurring hormone called uroguanylin and utilizes an evolutionarily-derived mechanism of action."
"Attractive Valuation - Synergy's current market cap of <$300mm does not adequately value the potential of plecanatide and the firm's platform technology, in our view. We derive our 12-month price target using a risk-adjusted Net Present Value (rNPV) approach, which assumes launch of the drug in 2015 and peak sales of roughly $4.4bn in 2021, the last year prior to U.S. patent expiry."
For more ratings news on Synergy Pharmaceuticals click here and for the rating history of Synergy Pharmaceuticals click here.
Shares of Synergy Pharmaceuticals closed at $3.03 yesterday, with a 52 week range of $1.01-$11.00.
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Morgan analyst says, "We believe Synergy represents a unique investment opportunity in the gastrointestinal (GI) disorders space, targeting a significant unmet medical need with a novel, safe, and effective drug...The current market for chronic constipation (CC) and constipation-predominant irritable bowel
syndrome (IBS-C) is substantial, with over 100mm people estimated to suffer from these disorders in the U.S., Europe, and Japan - We believe this creates a compelling opportunity for firms like Synergy, since plecanatide is based on a naturally-occurring hormone called uroguanylin and utilizes an evolutionarily-derived mechanism of action."
"Attractive Valuation - Synergy's current market cap of <$300mm does not adequately value the potential of plecanatide and the firm's platform technology, in our view. We derive our 12-month price target using a risk-adjusted Net Present Value (rNPV) approach, which assumes launch of the drug in 2015 and peak sales of roughly $4.4bn in 2021, the last year prior to U.S. patent expiry."
For more ratings news on Synergy Pharmaceuticals click here and for the rating history of Synergy Pharmaceuticals click here.
Shares of Synergy Pharmaceuticals closed at $3.03 yesterday, with a 52 week range of $1.01-$11.00.
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