Syneos Health, Inc. (SYNH - Free Report) enters collaboration with Idorsia Ltd (a biopharmaceutical company) for the commercialization of Idorsia’s daridorexant in the United States. The collaboration is expected to combine Syneos Health’s customer-facing sales expertise with Idorsia’s lead investigational compound (daridorexant). Syneos Health’s reputation of partnering with companies to launch new products works in its favor.
For investors’ note, daridorexant is a new dual orexin receptor antagonist which is currently under investigation for the treatment of insomnia.
Through this latest partnership, Syneos Health’s Contract Commercial Organization business arm is expected to receive a significant boost.
Rationale Behind the Collaboration
Per Syneos Health’s management, Idorsia’s innovative and revenue-driven agreement is expected to accelerate growth and also reach patients who are in urgent need of treatment for insomnia.
The daridorexant has illustrated its efficacy in pivotal studies as not only an improvement in sleep onset and sleep maintenance but also in daytime functioning. Notably, the success of the daridorexant on insomniacs has been demonstrated in both the pivotal Phase 3 studies conducted by Idorsia in April and July this year.
Further, Syneos Health is helping Idorsia launch commercial operations in the United States, with the first step being the U.S. launch of daridorexant.
Per a report by Allied Market Research, the global insomnia market was valued at $4,093 million in 2016 and is projected to reach $5,488 million by 2023 at a CAGR of 4.2%. Factors like chronic pain, hyperthyroidism and psychological stress causes insomnia.
Given the market potential for the condition, the availability of its treatment seems to be well-timed.
Other Recent Agreements
Of late, Syneos Health has entered into a few agreements to boost business.
The company, in July, signed a new three-year agreement with Pfizer with the aim of delivering global product development solutions to support Pfizer's portfolio.
In May, Syneos Health announced a strategic agreement with Daiichi Sankyo to collaborate to achieve the shared goal of providing promising cancer therapies to patients as safely, effectively and efficiently as possible.
Shares of the company have gained 20.1% in the past year compared with the industry’s 30.7% rise and the S&P 500’s 13.8% growth.
Zacks Rank & Key Picks
Currently, Syneos Health carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently flaunts a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
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