Synergy Pharmaceuticals (NASDAQ:SGYP)
continues to be an unusual little biotech with almost as many
weaknesses or concerns as strengths. On one hand, you have a company
with what could be a best-in-class drug that addresses a market that may
include millions of people in the U.S. alone. On the other hand, the
drug will be second-to-market and may have difficulty differentiating
itself, to say nothing of the difficulties of developing the market as a
whole and securing good reimbursement.
Synergy shares have risen almost 20% since my last article on the company,
but not without spending most of the intervening time down about 20%.
Management has possibly secured enough cash to get its lead drug to
market, but the company still needs a partner (or a buyer) and that
financing didn't come cheap. The prospective dilution of the financing
takes my fair value down, but the shares still look undervalued with two
catalysts on the way that could improve the risk-adjusted fair value by
almost 30%.
Read the full article here:
Progress At Synergy Pharmaceuticals, But Not Enough To Really Please Investors
No comments:
Post a Comment