Synergy Pharmaceuticals Inc (NASDAQ:SGYP) stock price can gain as it approaches its imminent catalyst in January 2017. The firm, which has a market capitalization of $939 million, has advanced plecanatide, its lead drug candidate to cure chronic idiopathic constipation and IBS-C. It is even developing dolcanatide, for the cure of ulcerative colitis and opioid-induced constipation.
In the latest 10-Q filing, Synergy Pharmaceuticals posted cash and cash equivalents of $109.1 million at the close of September 2016. In the previous nine months, the amount spent in operations stood at $92 million. Based on their current businesses, the company is projected to have under $70 million as of close of December.
Currently, the company has no revenue source and their only ability to record revenue relies on plecanatide success. The markets don’t project the firm to further dilute investors via an offering until after revealed PDUFA date.
As of now, the company’s focus is on two of the major diseases Chronic Idiopathic Constipation and Irritable Bowel Syndrome. CIC is defined by difficult stool passage and/or infrequent stools. It is termed as the presence of these symptoms for minimum 3 months. It is projected that nearly 1 out of 7 persons suffer from CIC.
IBS is defined by discomfort or abdominal pain for at least 3 days/month in a quarter. There are 4 types of IBS: IBS with diarrhea, mixed type, unclassified and IBS with constipation. It is projected that 1 out of 20 people in the United States has IBS-C.
There are numerous medications to treat CIC and IBS. Synergy successfully completed Plecanatide one phase 3 study and one phase 2/3 study for the cure in CIC and two phase 3 studies for the cure in IBS-C. The firm ran one stage 2/3, The Plecanatide CIC study, and one phase III study, 12-Week trial of Plecanatide for CIC. The results confirmed subjects given plecanatide showed a significantly improved response rate of durable comprehensive complete spontaneous bowel movements as against placebo.