UPDATE: Cantor Fitzgerald Initiates Coverage on Synergy Pharmaceuticals
Cantor Fitzgerald has published a research report on Synergy Pharmaceuticals (NASDAQ: SGYP) and has initiated coverage with a Buy rating and $7 price target.
In the report, Cantor Fitzgerald wrote, "We believe that Synergy investors have been motivated by the attractiveness of the constipation/IBS-C market outlined by competitor Ironwood and view Synergy's plecanatide as an improved compound possessing comparable efficacy to Linzess and improved tolerability. We urge investors to revisit their plecanatide assumptions with a fresh look at the available data following the FDA approval of Linzess. We think that the plecanatide market opportunity, while attractive, should initially be meaningfully smaller than Linzess's, given competitive dynamics and entrenched position of first-mover Linzess, though economics to Synergy are much more attractive since the company owns 100% of plecanatide rights. If Synergy is acquired by a larger company, we believe that the drug's competitive position could be improved via aggressive direct-to-consumer (DTC) promotion and more attractive pricing than Linzess."
Shares of Synergy Pharmaceuticals are currently trading up 4.25 percent from Monday's $4.71 closing price.
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