Hi ALL. my reasons for investing in this Synergy SGYP
The only other company which is developing a similar drug (that I know of) is Ironwood (also a 1 drug company in their portfolio). Look at the value of this company IRWD. Irownwoood own about about 40% of the IP rights, (Ironwoood is in partnership with 3 big pharma cos) to the drug they are developing whereas SYNERGY own 100% so any income generated is 100% Synergy's.
The drug Synergy are developing is developed from a natural occurring human hormone, whereas Ironwood's drug is developed from a toxin produced by E. Coli (a stomach bacteria which causes diarrhea) and this could indicate that as people become tolerant to various strains of E. Coli the body may become tolerant to the Ironwood drug. (example Tourists visiting India often get Deli Tummy but after a few days recover as they become immune to new strain of E. Coli) Ironwood drug also causes diarrhea in 20% of patients. The synergy drug at this time shows no sign of adverse diarrhea effects, this may mean that the drug has a much wider use and perhaps may be used as a daily drug for an indefinite time.
Good chance assuming the latest trials are positive that the company might be taken over... Big Pharma are losing patent rights to many of their drugs, so income falls as generic companies begin production of drugs which have run out of patent, and hence big pharma need to replace their portfolios with patented new drugs. Cheaper for big pharma to buy small companies with developed drugs than to develop themselves. There is potentially a huge market for constipation relieving drugs, especially one which shows no side effects.