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PRESS RELEASE: PropThink: SGYP Advances 2nd Clinical-Stage GI Treatment; Positive For The Stock
PRESS RELEASE: PropThink: SGYP Advances 2nd Clinical-Stage GI Treatment; Positive For The Stock
Synergy Pharmaceuticals (NASDAQ:SGYP) recently submitted an IND
(Investigational New Drug application) for its IBD (inflammatory bowel
disease) treatment, SP-333, and is on track to meet managementŽs
objective to begin clinical trials with the compound in the second half
of this year. Like SGYPŽs lead drug candidate, plecanatide, SP-333 is a
guanylate cyclase-C (GC-C) agonist that, according to the company, may
be the most potent analog of uroguanylin ever developed. Uroguanylin is
a natural human hormone that regulates the secretion of fluid into the
intestine, which is critical for normal digestion. Unlike plecanatide
which is being developed for CC and IBS (chronic constipation and
irritable bowel syndrome, respectively), SP-333 will be developed to
treat select IBDs, with ulcerative colitis expected to be the first
indication tested. As an orally available agent, SP-333 has potential to
become an important treatment in this large indication, for which the
need for new drug therapies is high. Advancement of SP-333 indicates
that SGYP is not a one-trick pony in the gastrointestinal (GI) treatment
segment, and could make the company even more attractive to potential
large cap pharmaceutical partners or suitors seeking to have a franchise
in this area.
Nevertheless, the key focus for SGYP remains on plecanatide, as this
potential treatment for CC and IBS is the subject of a late-stage
clinical trial intended to support FDA approval. Results for this trial
are due to be reported before year-end and if positive, are likely to be
a major value-creating event for the stock (see PropThinkŽs
(http://www.propthink.com/synergy-closing-key-trial-decision-on-linaclot
ide-likely-to-have-impact/1539) prior story). In late August, Forest
Laboratories (NYSE:FRX) and partner Ironwood PharmaceuticalsŽ
(NASDAQ:IRWD) received FDA approval for their IBS/CC treatment, Linzess
(generically known as linaclotide). Given that Linzess and plecanatide
work by the same mechanism of action, the approval of Linzess provided
strong validation that plecanatide has a good chance to reach the
market. Importantly, based on early-stage data, plecanatide appears to
have a more favorable side effect profile than Linzess, and there is
some talk that SGYP could be on the radar screen of big pharma as a
take-out candidate or a partner. Expect shares of SGYP to trade higher
as analysts and investors begin to factor in value for SP-333, and as we
move closer to the anticipated clinical results for plecanatide.
See this article in its original form by clicking
(http://www.propthink.com/sgyp-advances-2nd-clinical-stage-gi-treatment-
positive-for-the-stock/2027) here.
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Disclaimer:
Use of PropThinkŽs research is at your own risk. You should do your own
research and due diligence before making any investment decision with
respect to securities covered herein. You should assume that as of the
publication date of any report or letter, PropThink, LLC (possibly along
with or through our members, partners, affiliates, employees,and/or
consultants) along with our clients and/or investors (collectively
referred to as "PropThink") has a position in all stocks (and/or options
of the stock) covered herein that is consistent with the position set
forth in our research report. In connection with SGYP, PropThink has
taken a long position and therefore stands to realize significant gains
in the event that the price of stock appreciates. Following publication
of any report or letter, PropThink intends to continue transacting in
the securities covered therein, and we may be long, short, or neutral at
any time hereafter regardless of our initial recommendation. PropThink,
LLC is not registered as an investment advisor. To the best of our
knowledge and belief, all information contained herein is accurate and
reliable, and has been obtained from public sources we believe to be
accurate and reliable, and not from company insiders or persons who have
a relationship with company insiders. A shareholder of PropThink is a
consultant to Synergy Pharmaceuticals and receives a monthly retainer as
compensation. Neither the opinion expressed herein nor PropThinkŽs
position is influenced by this relationship. PropThink was not
compensated to publish this article, and we retain full control over the
content of this article. Our full disclaimer is available at
(http://www.propthink.com/disclaimer)
http://www.propthink.com/disclaimer.
This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
