Synergy Pharmaceuticals Inc (SGYP) Shares Jump 10% on News of Positive Phase 1 Data

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Shares of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) are up close to 10% in pre-market trading this morning after the company announced positive Phase 1 results with their Ulcerative Colitis treatment, Dolcanatide.

The double-blind, placebo-controlled study lasted four weeks and examined 28 different patients who had mild-to-moderate ulcerative colitis. The study showed that the treatment seems to work quite well in improving the condition of the patients, when compared to those given the placebo.

“This successful proof-of-concept study with dolcanatide clearly demonstrates the utility of our uroguanylin-based platform in inflammatory bowel disease and opens the opportunity for us to evaluate areas beyond functional GI disorders,” said Gary S. Jacob, Ph.D., Chairman and CEO of Synergy. “This is a major milestone achievement in what we expect to be a transformative year for Synergy. We remain on-track to file our first NDA with plecanatide for CIC this month and our second NDA with plecanatide for IBS-C by the end of this year. I congratulate our team as it remains focused on flawless execution across all areas of our business and I look forward to a very exciting and successful 2016.”

The stock closed at $4.14 during the last trading session. It is down 15.51% since June 5, 2015 and is downtrending. It has underperformed the S&P500 by 9.65%.

From a total of 4 analysts covering Synergy Pharmaceuticals (NASDAQ:SGYP) stock, 3 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $20 while the lowest target price is $9.50. The mean of all analyst targets is $12.50 which is 201.93% above today’s ($4.14) stock price. Synergy Pharmaceuticals was the topic of 5 analyst reports since August 25, 2015 according to the firm StockzIntelligence Inc. Citigroup downgraded shares on December 18 to a “Neutral” rating. TH Capital reinitiated SGYP stock in a recent report from October 29 with a “Buy” rating. Finally, BTIG Research initiated the stock with a “Buy” rating in a report they issued on an August 25.

The institutional sentiment decreased to 1.26 in Q2 2015. It’s down 1.16, from 2.42 in 2015Q2. The ratio fall, as 26 funds sold all their Synergy Pharmaceuticals Inc shares they owned while 35 reduced their positions. 29 funds bought stakes while 48 increased their total positions. Institutions now own 57.91 million shares which is 11.88% more than the previous share count of 51.76 million in 2015Q2.

Great Point Partners Llc holds 2.38% of its total portfolio in Synergy Pharmaceuticals Inc, equating to 1.14 million shares. Dafna Capital Management Llc owns 296,563 shares representing 1.56% of their total US portfolio. Moreover, Ghost Tree Capital Llc has 1.43% of their total portfolio invested in the company, equating to 600,000 shares. The New York-based Trellus Management Company Llc has a total of 1.27% of their portfolio invested in the stock. Pura Vida Investments Llc, a New York-based fund reported 400,000 shares owned.

Since September 14, 2015, the stock had 0 buys, and 2 insider sales for a total of $174,347 in net activity. Denoyer Bernard sold 10,000 shares worth $75,000. Joslyn Alan sold 13,754 shares worth $99,347.

Synergy Pharmaceuticals Inc. is a biopharmaceutical firm focused on the development of drugs to treat gastrointestinal (GI), disorders and diseases. The company has a market cap of $470.61 million. The Company’s platform technology is based on the naturally occurring human GI peptide, uroguanylin, a regulator of normal GI physiology. It currently has negative earnings. The Company’s products include plecanatide, SP-333 and FV-100.

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