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Synergy Pharmaceuticals, Inc. Message Board

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  • break_thru_99 break_thru_99 Jan 26, 2013 2:13 PM Flag

    We are sitting on a $15 stock

    Every small cap biopharm with a product to offer is looking for a buyout, however it doesnt happen very often. What would be synergies options be if this doesn't occur? Partnership? Or would they be able to take this to market by themselves?

    Sentiment: Buy

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    • agreed, however not every small cap bio has a product with very positive Phase III data in hand. Additionally the regulatory pathway for the class has been successfully established with the approval of Linzess and this class serves a multibillion dollar market with huge unmet needs. It is an excellent opportunity for a big pharma buyer or partner

      To answer your question, please search and read the interview with the CEO IIRC from Nov 29th. He clearly states their focus is on partnering or a clean exit with an M&A deal. Additionally their chairman clearly stated during an interview last year that their strategy is to sell. and finally if they had any intention of bringing this product to market by themselves they would be aggressively building out their organization right now (and they are not doing so)

      IMO the path forward is to sell, assuming they get a fair price, or to sign a lucrative global partnership agreement with a significant upfront cash payment. In either case the PPS has significant upside from these levels

      I hope that is helpful

      Sentiment: Strong Buy

      • 2 Replies to betonbio
      • Bump......

        Sentiment: Strong Buy

      • Your explanation was clear. I was thinking buyout price you were correctly thinking projected share price. I keep thinking it will go along the lines of Inhibitex, 26 at buyout. The fact that it is derisked is a huge benefit in negotiations. Don't forget that Bristol Meyer (right company?) had to write off all of their investment in Inhibitex after they bought it from Gabe and people started dropping dead from heart attacks. That's the kind of thing you don't forget quickly I imagine. What was it, 1.3 billion or so they had to write off. Bad day! This drug doesn't even go systemic.
        I also totally agree that if they didn't intend to sell the company they would be gearing up to sell the drug, which they don't appear to be doing. Question for you: What difference to share price on buyout vs. partnership? My best.

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