Synergy Pharmaceuticals Inc (NASDAQ:SGYP) a biopharma firm focused on the commercialization and development of novel gastrointestinal therapies, reported the pricing of underwritten public offering of over 20 million shares at a price of $6.15 per share, before excluding underwriting discounts and commissions, as well as other projected offering costs. It is anticipated to close by February 6, 2017, depending on customary closing conditions.
Canaccord Genuity Inc. and Cantor Fitzgerald & Co. are common book-running managers for this offering while co-manager role is taken by H.C. Wainwright & Co.
Synergy plans to use the net proceeds from this public offering to support its commercialization activities linked to TRULANCE™, further clinical advancement of plecanatide and for generate coporare and working capital purposes. The company may also utilize the net proceeds to fund prospective acquisitions of other firms, technologies or products, though no such deals are currently contemplated.
On January 19, 2017, the U.S FDA accepted Synergy Pharmaceutical lead product ‘Trulance’, for the cure of chronic idiopathic constipation. Two fellow SA sponsors followed the FDA’s measure with articles that emphasis solely on assessing the newly approved GI medication with Linzess. It will be its major rival.
A key argument made by company is that that Linzessis superior to Trulance, indicating, by extension, that the latter firm won’t be a commercial achievement. Without getting into the debate of which drug in fact superior, it is vital to note that the impending competition between Trulance, Linzess and, to a lesser extent, Amitiza doesn’t marks a zero-sum game.
The target market is growing rapidly, as noted by the increasing sales of Linzess. Released towards the close of 2012, the medication quickly grabbed the pioneer position and is on its way to recording blockbuster status. Sales in the U.S. sales were up 54% in FY2015, amounting to $455 million.