Rodman & Renshaw Reiterate Buy On Synergy Pharma Following Plecanatide Phase 3 Report

Rodman & Renshaw's Raghuram Selvaraju reiterated his Buy position on Synergy Pharmaceuticals Inc (NASDAQ: SGYP) with a price target of $15.00. The rating reiteration comes after further Plecanatide Phase 3 data was reported, showing positive results.

The new data "emphasizes what we view as the drug's strong likelihood of approval early next year," said Selvaraju. Due to further "top-line data release from two ongoing Phase 3 trials of plecanatide" later this year, the analyst believed the price is likely to rise from $3.26 to $15.00 over the next twelve months.


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Selvaraju did acknowledge three significant risks to the company, which include:

  • Plecanatide failure in clinical trials
  • Failure of plecanatide to secure approval
  • "Variations in market size, penetration and pricing vs. our model estimates"

Despite Selvaraju's positive outlook for the company, the analyst estimates 2017 EPS to be $(0.29).


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This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorBiotechLong IdeasHealth CarePrice TargetReiterationAnalyst RatingsTrading IdeasGeneralRaghuram SelvarajuRodman & Renshaw