Synergy Pharmaceuticals Inc.
) recently priced its public offering of 16.4 million shares of
its common stock, with an overallotment option for an additional
2.5 million shares.
Synergy Pharma expects to raise around $90.1 million from the
public offering before deducting underwriting discounts and
commissions and other estimated offering expenses that are
payable by Synergy Pharma. The offering is expected to close on
or about Apr 16, 2013.
Synergy Pharma intends to utilize the net proceeds from the
public offering primarily for the development of its pipeline.
The company also has plans to use the net proceeds for working
capital and other general corporate purposes. Synergy Pharma may
invest an amount for acquisitions of other companies, products or
technologies. The company is however yet to plan for any such
We note that Synergy Pharma has several candidates in its
pipeline. The lead candidate at Synergy Pharma is plecanatide. In
Jan 2013, Synergy Pharma reported positive data from a phase
IIb/III study on plecanatide, being developed for the treatment
of patients suffering from chronic idiopathic constipation
Moreover, in Dec 2012, Synergy Pharma initiated a phase IIb
study with plecanatide for the treatment of patients suffering
from constipation-predominant irritable bowel syndrome (IBS-C).
The trial is evaluating the average change in complete
spontaneous bowel movements (CSBMs) during the course of the
therapy (12 weeks) in comparison to their baseline weekly CSBM
rate established during the screening phase of the study.
Synergy Pharma also has SP-333 in its pipeline. The company
has completed a phase I placebo-controlled, dose-escalating,
single-dose study on the candidate, for the treatment of
inflammatory bowel disease (IBD) including ulcerative colitis
(UC). In Jan 2013, the company initiated a phase I
multiple-ascending-dose clinical study on SP-333 in healthy
Synergy Pharma, a biopharmaceutical company, currently carries
a Zacks Rank #4 (Sell), reflecting short-term pressure on the
stock. Other biopharmaceutical stocks such as
) currently look more attractive. While UCB and Athersys carry a
Zacks Rank #1 (Strong Buy), Celgene carries a Zacks Rank #2
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