Synergy Pharmaceuticals Inc (NASDAQ:SGYP)
Since last summer, Synergy Pharmaceuticals has had an incredibly hard time in the market. In fact, the company has shed about 70% off of its stock price since. However, over the past few trading sessions, we have seen big bullish movements on the stock, and the gains seem to be continuing. Today, we'll talk about why we've seen gains recently, what we're seeing in the market today, and whether or not it is time to start buying SGYP.
Why SGYP Is Seeing Gains
Recently, Synergy Pharmaceuticals has been the topic of two incredibly positive stories as far as investors are considered. Here's what we've seen over the past few trading sessions...
- SGYP Considers Selling – Last week, a story came out that Synergy Pharmaceuticals was considering the idea of being acquired by another pharmaceutical company. At the moment, it's perfect timing. The company's New Drug Application for Plecanatide is in with the FDA and the price of the stock is incredibly appealing. Not to mention, acquisitions get investors overwhelmingly excited. Nonetheless, since the announcement that SGYP would be considering being acquired, we've heard about several possible buyers. One of these possible buyers is Allergan (NYSE:AGN_pa). In fact, the company has made it clear that they are considering the acquisition.
- Positive News From The FDA – On top of the idea of an acquisition, there's another reason that SGYP investors are getting excited. Early this week, the company received news that the Food and Drug Administration has accepted its New Drug Application for Plecanatide for the treatment of Chronic Idiopathc Constipation, also known as CIC. Considering the strong results from clinical trials surrounding the treatment, it seems to be a slam dunk. Nonetheless, we will know by January whether or not the treatment will be approved by the regulatory agency.
What We've Seen In The Market From SGYP
Over the past few trading sessions, there has been nothing but upward trends on SGYP. After all, with the positive news surrounding the company, we can't necessarily expect to see anything less. The gains we've seen from Synergy Pharmaceuticals are continuing today. While it is still incredibly early in the day (9:39), the stock is already trading at $3.66 per share after a gain of $0.02 per share or 0.55% 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 SGYP. The reality is that there are few reasons to be bearish and plenty to be bullish. First and foremost, the concept of an acquisition seems to be a very likely one at this point, and if an acquisition does happen, you can expect a big premium. After all, with the Plecanatide NDA being accepted by the FDA, the valuation on the company is currently low. Talking about the Plecanatide NDA, I'm expecting that the FDA will approve the application. This will open the door for strong future profits. Finally, I'm incredibly impressed by the pipeline that Syngery Pharmaceuticals has created. For a clinical stage biotechnology company, their pipeline is one of the best. All in all, things seem to be looking great for SGYP.