Synergy Pharmaceuticals Inc. (SGYP - Free Report) reported a loss of 24 cents per share in the first quarter of 2013, wider than the year-ago loss of 13 cents and the Zacks Consensus Estimate of a loss of 17 cents per share. The wider loss during the quarter was primarily due to higher expenses.
Synergy Pharma did not generate any revenues during the reported quarter nor in the year-ago quarter.
Synergy Pharma’s research and development (R&D) expenses increased 168.7% to $14.3 million in the first quarter of 2013. The company’s general and administrative expenses increased 89.3% to $3.3 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.
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. SP-333 is also being developed 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.
Moreover, in Apr 2013, Synergy Pharma raised around $84.5 million (net) through a public offering. The company offered 16.4 million shares of its common stock at $5.50 per share. Synergy Pharma is expected to utilize the net proceeds to further its research and development activities.
Synergy Pharma currently carries a Zacks Rank #4 (Sell). However, other biopharmaceutical stocks such as Jazz Pharmaceuticals (JAZZ - Free Report) , Santarus Inc. and Cubist Pharmaceuticals Inc. currently look more attractive. While, Jazz Pharma and Santarus carry a Zacks Rank #1 (Strong Buy), Cubist Pharma carries a Zacks Rank #2 (Buy).