Synergy Pharmaceuticals Inc (NASDAQ:SGYP) Stock Paying Off, for Short-Sellers

Synergy Pharmaceuticals Inc (NASDAQ:SGYP)

Synergy Pharmaceuticals Inc (NASDAQ:SGYP) stock is continuing the slide that began on Tuesday after the company released their Q2 financials. This morning SGYP stock broke through the $3 level on volumes almost four times their normal average. Wednesday, Synergy posted a Q2 net loss of (-$73.9) million or (-$0.33) per share. Analysts were expecting a loss of only (-$0.25).

Synergy stock chart:

Synergy Pharmaceuticals Inc (NASDAQ:SGYP)
One month SGYP stock price chart

Trulance is Synergy Pharmaceuticals Inc (NASDAQ:SGYP)’s main sales generator. The drug addresses chronic idiopathic constipation and its sales performance exceeded projections. More than 12,600 TRULANCE prescriptions have been filled and total monthly prescription volume had an average increase of more than 182% month-over-month. At the end of the second quarter, more than half of new TRULANCE prescriptions filled since launch were coming from new patients not previously on a branded prescription treatment, and 45% were patients that converted from other branded prescription treatments.

Gary S. Jacob, Ph.D., Chairman and CEO of Synergy Pharmaceuticals Inc (NASDAQ:SGYP) stated ““The first half of 2017 was a truly transformative period for Synergy, as we transitioned into a commercial organization and launched our first product, TRULANCE, in the U.S. for the treatment of adults with chronic idiopathic constipation (CIC). We are pleased with the execution of our commercial strategy, and the strong initial demand for TRULANCE, reinforcing the need for new treatment options for patients suffering from CIC. And we are making significant progress in ensuring broad access to TRULANCE, highlighted by a number of favorable early decisions from key national payers.”

Synergy Pharmaceuticals Numbers

Although their featured drug, TRULANCE, seems to be selling well in the market, investors have been selling off SGYP stock. YTD, SGYP shares are down around 50% and down over 33% for the year. Currently the shares are trading within 2.5% of their 52-week low of $2.91. No doubt some of the downward pressure on SGYP stock is the large percent of the float held by short-sellers – over 27%. Still, analysts have given SGYP stock a consensus target price of $10.89.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.