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Synergy Posts Wider Loss

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Synergy Pharmaceuticals Inc. (SGYP - Free Report) reported a loss of 17 cents per share in the fourth quarter of 2012, wider than the year-ago loss and the Zacks Consensus Estimate of a loss of 15 cents. The wider loss during the quarter was primarily due to higher expenses.

Synergy Pharma did not generate any revenues during the reported quarter as well as in the year-ago quarter.

Synergy Pharma suffered a loss of 61 cents per share for full year 2012, wider than the year-ago loss of 41 cents but in line with the Zacks Consensus Estimate of a loss of 61 cents per share. The company did not generate any revenues in 2012 as well as in 2011.

Other Details

Synergy Pharma’s research and development (R&D) expenses increased 59.3% to $9.1 million in the fourth quarter of 2012. The company’s general and administrative expenses increased 10.1% to $2.4 million.

In Jan 2013, Synergy Pharma reported positive data from a phase IIb/III study on its chronic idiopathic constipation (CIC) candidate, plecanatide. The study met its primary objective along with other key objectives.

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 will evaluate the average change in complete spontaneous bowel movements (CSBMs) during the trial period in comparison to their baseline weekly CSBM rate that was established during the screening phase of the study.

Synergy Pharma also has SP-333 in its pipeline. The company has completed a phase I study on the candidate, which is a guanylate cyclase C (GC-C) agonist being developed for the treatment of ulcerative colitis (UC) and other gastrointestinal (GI) diseases. Synergy Pharma also initiated a phase I study on SP-333 for the treatment of inflammatory bowel disease (IBD) including ulcerative colitis (UC).

The company also successfully completed its acquisition of Callisto Pharmaceuticals Inc. earlier this year.

Synergy Pharma currently carries a Zacks Rank #3 (Hold). However, other biopharmaceutical stocks such as UCB (UCBJF - Free Report) , Athersys Inc. (ATHX - Free Report) and Array BioPharma Inc. (ARRY - Free Report) currently look more attractive. UCB and Athersys carry a Zacks Rank #1 (Strong Buy), whereas Array carries a Zacks Rank #2 (Buy).

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