Aegis Capital Reiterates Buy Rating, $25 PT on Synergy Pharmaceuticals

In a report published Friday, Aegis Capital Corp. reiterated its Buy rating and $25.00 price target on Synergy Pharmaceuticals

. Aegis Capital noted, “This morning, Synergy announced that it had successfully completed the first Phase 1 study of its second gastrointestinal (GI) tract disorders-focused pipeline candidate, SP-333. This agent is a novel analog of the endogenous human hormone uroguanylin, and has different pharmacokinetic and pharmacodynamics properties from Synergy's lead molecule, plecanatide. The Phase 1 data from this single ascending dose (SAD) study showed that SP-333 was safe and well-tolerated, with no unexpected side effects. Eight cohorts of healthy volunteers were given the drug, with dosing ranging from 0.1mg to 60mg. The pharmacokinetic profile of the drug demonstrated positive GI tract bioavailability that bodes well for its development in additional clinical studies. A multiple ascending dose (MAD) study is planned to begin early in 2013, with data expected in the first half of the year. Assuming positive results, Synergy plans to conduct a Phase 2 proof-of-concept clinical trial with SP-333 in ulcerative colitis, with data potentially available before the end of 2013. In the wake of the positive initial SAD data from the first Phase 1 trial of SP-333, and in anticipation of positive Phase 3 data with plecanatide in the chronic constipation study in the coming days, we reiterate our Buy rating and 12-month price target of $25 per share for SGYP.” Synergy Pharmaceuticals closed on Thursday at $5.06.