What Synergy's New Patents Mean For Its Commercial Prospects

Synergy Pharmaceuticals Inc SGYP announced last week it has been issued three new patents from the U.S. Patent and Trademark Office. The first patent relates to the manufacturing method for TRULANCE (plecanatide) and the other two relate to formulations and methods of using Trulance for treating chronic idiopathic constipation and irritable bowel syndrome with constipation.

According to Raghuram Selvaraju of Rodman & Renshaw, the receipt of three patents represents a "substantial value driver" for Synergy as it can "meaningfully" expand the commercial window for Trulance. The analyst highlighted that the composition-of-matter protection for the drug was previously covered by claims in two patents that were set to expire in 2022 and 2023 without factoring in the impact of the term extensions.

Synergy As An Acquisition Target

Selvaraju further argued that Synergy's new patents may enhance its attractiveness as a potential acquirer. The analyst justified this view by noting that the company's Trulance could be viewed as a best-in-class therapeutic solution for constipation disorders.

The analyst also estimated that Trulance would see peak annual sales of $2.3 billion in 2021 and a total firm value of $4.3 billion. As such, shares of Synergy remain Buy rated with a 12-month price target of $18.

Editor's note, April 18, 7:43 a.m. ET: A previous version of this story stated, "and a total firm value of $.3 billion." We apologize for this error.

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