Aegis Keeps Synergy Pharma (SGYP) at 'Buy' Following Positive Plecanatide Phase 2b Update

Aegis Capital affirms Synergy Pharmaceuticals (Nasdaq: SGYP) with a Buy rating and $20 price target following the presentation of results from a phase 2b dose-ranging study assessing plecanatide’s safety and efficacy in 424 adult patients (mITT population= 423) with irritable bowel syndrome with constipation (IBS-C).

Analyst Raghuram Selvaraju noted, Plecanatide showed statistically significant impact on various key efficacy measures, including change from baseline in complete spontaneous bowel movements (CSBMs), improvement in abdominal pain intensity, stool consistency, and overall responder and abdominal pain responder percentages.

Selvaraju commented, The Phase 2b data showed that the safety profile of plecanatide appears to be favorable and competitive with that of linaclotide, which is currently marketed by Ironwood Pharmaceuticals (Nasdaq: IRWD) in conjunction with Actavis (NYSE: ACT). While Phase 3 trials of linaclotide showed diarrhea rates of 20% vs. 3% on placebo, the recently-reported Phase 2b data with plecanatide showed a 9.3% diarrhea rate with the 3mg/day dose vs. 0% on placebo. The discontinuation rate due to diarrhea for patients on the 3mg/day dose of plecanatide in this study was 5.8%, which also compares favorably to the 10.2% discontinuation rate due to diarrhea reported for linaclotide in its first IBS-C Phase 3 study and the 4.5% discontinuation rate due to diarrhea reported in the second Phase 3 trial.

For an analyst ratings summary and ratings history on Synergy Pharmaceuticals click here. For more ratings news on Synergy Pharmaceuticals click here.

Synergy Pharmaceuticals closed at $2.74 yesterday.

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