Synergy Pharmaceuticals Inc (NASDAQ:SGYP) Stock Outlook Improves Behind Trulance Catalysts & Recent Developments

- February 23, 2017

You can read my previous take on Synergy Pharmaceuticals Inc (NASDAQ:SGYP) here and here. I recently concluded that SGYP stock is a good investment for the next three years. However, I told BNL Members back in January following the Trulance approval that the next six months will be challenging.

Therefore, I recommended not buying SGYP stock, but watching it as the risks I detailed to BNL Members pass. Those risks have come and gone.

Synergy Pharmaceuticals Inc (NASDAQ:SGYP) has raised capital, which was inevitable, and its primary competitor from Allergan (NYSE:AGN) and Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) got their drug Linzess approved at a lower dosage. Linzess has a big head start on Trulance, but Synergy’s Trulance is the better drug. Regardless, the public offering and Linzess’ new dosage caused selling pressure in SGYP stock, as expected.

A new catalyst has emerged. According to multiple sources, 50 or more Valeant Pharmaceuticals (NYSE:VRX) sales staff just left for Synergy Pharmaceuticals. Neither Synergy nor Valeant will confirm this to be true.

Pharmaceutical companies often recruit from their competitors as a means to close gaps in competitiveness, and a company like Synergy would certainly be willing to pay seasoned GI sales staff much more than Valeant to ensure a successful Trulance launch.

The big question is whether it really happened. With more than a decade of experience in sell-side research, I had a few connections in this space. Below is what I found, and of course, it is exclusively available for BNL Members.

Biotech Hunter: Is Valeant staff jumping ship for Synergy?

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3 Comments

  1. ilylgod
    Posted March 23, 2017 at 5:47 pm | Permalink

    Liam,
    What is your take on SGYP’s recent weakness? Opportunity or stay away?
    Thanks.
    ilylgod

  2. A M
    Posted March 23, 2017 at 8:10 pm | Permalink

    Liam,

    How long does it take for the sales to ramp up in such scenarios? Let’s assume 50 GI sales staff have joined Synergy.

    When can they get $50m, $100m, $200m of annual revenue?

  3. A M
    Posted March 24, 2017 at 7:42 pm | Permalink

    Liam,

    There are fours drugs already in the market for CIC:
    http://www.webmd.com/drugs/condition-13442-Chronic+Idiopathic+Constipation.aspx?diseaseid=13442&diseasename=Chronic+Idiopathic+Constipation

    Synergy’s drug will be the 5th one. Do you have any relationship with GIs to get an idea which drug will they prefer. Competition would have increased with recent lower dosage approval for Linzess, since it is likely to reduce the side effect of weight gain and bloating. I would love to hear what the physician and sales people feel about this.

    Please let us know if you can can get some information about this.

3 Trackbacks

  1. […] million patients are actively seeking treatment or not satisfied with their current treatment. If my source proves correct that Synergy has been successfully hiring former Valeant and Salix employees, it would be yet […]

  2. By Live Gamers Chat on February 6, 2018 at 11:16 am

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    Synergy Pharmaceuticals Inc (NASDAQ:SGYP) Stock Outlook Improves Behind Trulance Catalysts

  3. By Chat with Gamers on February 6, 2018 at 11:44 am

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    Synergy Pharmaceuticals Inc (NASDAQ:SGYP) Stock Outlook Improves Behind Trulance Catalysts

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