Synergy Pharmaceuticals Inc. (SGYP - Snapshot Report) recently announced that it will be raising funds through an underwritten public offering. Synergy Pharma intends to sell $90 million of its common stock through an underwritten public offering. The aggregate value may amount to $103.5 million if the underwriters exercise their over-allotment option fully.
We expect the fund raised from the public offering to be invested in the company’s research and development efforts. Synergy Pharma has several pipeline candidates in its pipeline.
The lead candidate at Synergy Pharma is plecanatide. In Jan 2013, Synergy Pharma reported positive data from a phase IIb/III study on plecanatide, being developed for the treatment of patients suffering from chronic idiopathic constipation (CIC).
Moreover, in Dec 2012, Synergy Pharma initiated a phase IIb study with plecanatide for the treatment of patients suffering from constipation-predominant irritable bowel syndrome (IBS-C). The trial is evaluating the average change in complete spontaneous bowel movements (CSBMs) during the course of the therapy (12 weeks) in comparison to their baseline weekly CSBM rate established during the screening phase of the study.
Synergy Pharma also has SP-333 in its pipeline. The company has completed a phase I placebo-controlled, dose-escalating, single-dose study on the candidate, for the treatment of inflammatory bowel disease (IBD) including ulcerative colitis (UC). In Jan 2013, Synergy Pharma initiated a phase I multiple-ascending-dose clinical study on SP-333 in healthy volunteers.
Synergy Pharma, a biopharmaceutical company, currently carries a Zacks Rank #4 (Sell). However, other biopharmaceutical stocks such as UCB (UCBJF - Snapshot Report), Athersys Inc. and Celgene Corporation (CELG - Analyst Report) currently look more attractive. While UCB and Athersys carry a Zacks Rank #1 (Strong Buy), Celgene carries a Zacks Rank #2 (Buy).