UPDATE: Canaccord Genuity Initiates Synergy Pharmaceuticals at Buy on Opportunities

Canaccord Genuity initiated coverage on Synergy Pharmaceuticals (NASDAQ: SGYP) with a Buy rating and a $7 price target.

Canaccord Genuity commented, "We see clear unmet need for the large proportion of chronic constipation patients non-responsive to current therapies and the smaller proportion that experience severe diarrhea with linaclotide (Linzess). Compared to recently approved Linzess (Forest/Ironwood), plecanatide may have better tolerability, with no diarrhea signal seen in Phase 2a. Data from the Phase 2b/3 trial is due by YE12, and if safety continues to be clean we expect wide use in severe chronic constipation, noting the market for severe idiopathic constipation may be limited."

Synergy Pharmaceuticals closed at $3.67 on Tuesday.

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