Analyst: Synergy Pharma Could Achieve Sustainable Profitability By 2018

Synergy Pharmaceuticals Inc SGYP announced the filing of the supplemental New Drug Application for Trulance (plecanatide) in constipation-predominant irritable bowel syndrome. Trulance’s approval in IBSC “should be a matter of routine,” Rodman & Renshaw’s Raghuram Selvaraju said in a report.

While reiterating a Buy rating and price target of $18 for Synergy Pharma, Selvaraju mentioned that the company “could turn sustainably profitable in early 2018.”

Trulance Prospects

Selvaraju expressed optimism regarding the “rapid traction” for Trulance in the United States as a “best-in-class therapeutic solution for constipatory disorders.”

Trulance had already received regulatory approval in chronic idiopathic constipation and the company has reported positive topline data for the compound in a couple of “robustly-powered, placebo-controlled, randomized and double-blinded clinical trials in IBS-C patients,” the analyst noted. In view of these, Trulance is likely to be approved for IBSC.

The drug's label would likely be updated to reflect approval for the IBSC indication early in 2018, assuming a review period of ten months, Selvaraju stated, while estimating 2017 top-line revenue of $53.6 million based on Trulance’s sales in CIC. He also estimated Trulance’s peak annual sales at $2.3 billion in 2021.

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