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Synergy Pharmaceuticals: Major Upside Ahead


The recent decline in the market and in particular the biotech sector has caused Synergy Pharmaceuticals to fall some 35% from recent highs.

The pullback is a buying opportunity as investors are not factoring in recent and upcoming catalysts for this promising small cap biotech biopharma.

This week an analyst put a $20.00 a share price target on Synergy, more than triple the current price. There is good reason for his optimism.

The recent sell-off in the market has claimed many victims. Few sectors have suffered more than the small cap biotech sector. Many of the names I follow are down 25%, 35% or even 50% on little more than a sentiment change on the space. This is not unusual for this lucrative but volatile sector of the market. The last pullback in the area happened in early March of 2014.

That "episode" lasted 6-8 weeks and took large cap names like Gilead Sciences (NASDAQ:GILD) down 20% to 30% in short order. As in this recent decline, small caps were hit harder with myriad names in the space down 50% to 70%. Shortly after that pull back ended, the biotech sector was one of the stronger market leaders until this latest "hiccup".

Today I want to highlight a favorite small cap concern of mine in this sector. The stock has been hit simply because it is in the wrong sector of the market and has given up 35% of its value from recent highs. One analyst put out a rating this week speculating the stock could more than triple from current levels. Let's take a look at this promising small cap biotech concern.

Company Overview:

Synergy Pharmaceuticals (NASDAQ:SGYP) is a small biopharmaceutical company focused on the development of novel therapies for the treatment of gastrointestinal "GI" diseases and disorders. Their proprietary GI platform is based on uroguanylin, a naturally occurring human peptide that plays a key role in regulating normal GI activity. The company has discovered and are developing two fully-owned late-stage clinical assets, plecanatide and dolcanatide (formerly SP-333), which...