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Synergy Pharmaceuticals, Inc. Message Board

  • frank_aldridge frank_aldridge Mar 3, 2014 9:27 AM Flag

    Salix mentioned as possible acquirer again

    Cantor Fitzgerald put out a note on Salix Pharma that had the below discussion note form management. The Santarus acquisition was $2.6B and was announced at the end of last year. If SGYP were bought for half that it would be $14 a share.

    "Management indicated that it is more likely to pursue small deals in the near future rather than large deals along the lines of the Santarus acquisition. Also indicated was a desire to fill out Salix’ portfolio in areas such
    as the IBS-C and CIC market. The U.S. CIC market consists primarily of Synergy’s Plecanatide and Sucampo’s Amitiza leaving both these companies as potential buy-out targets, in our view."

    Sentiment: Strong Buy

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    • Great stuff Frank....thanks for posting that!


      Sentiment: Strong Buy

    • I will admit the strength shown by SGYP was a bit fact, the kind of bouncing back this stock did today in the face of a real down day does make me think there is something brewing behind the scenes that we are not yet privy to.....we'll see. Good job Frank

    • Frank, you are a good man. Thank You

      Sentiment: Strong Buy

    • I had access to the Cantor research report, which I can't provide a link to that. However, I looked and the info looks to have come from last weeks SLXP earnings call transcript. SLXP now has 500+ specialty sales reps for their GI products, so it would seem natural to add a late stage development drug in GI markets that SLXP is not currently in.
      Here are some excerpts from that call:

      Gregory D. Fraser - BofA Merrill Lynch, Research Division
      Great. That's helpful color. Has the LINZESS launch made you more or less excited about the IBS-C space?
      Carolyn J. Logan
      Oh, LINZESS. We don't consider LINZESS a competitor. But we consider anytime, anybody's talking about IBS, whether it's constipation or diarrhea, an advantage for us. Because the more IBS is talked about, the more excited or motivated IBS patients may be to go into their physician and seek treatment. So if we are granted approval, as we hope we will be, then we believe we'll benefit from increased noise around IBS.
      Gregory D. Fraser - BofA Merrill Lynch, Research Division
      Sure. I was wondering more about your interest in an asset in that space, and whether it's gone up or not.
      Carolyn J. Logan
      We've always been interested in having a drug for IBS-C, and so we look for that. Yes, that's definitely an interest of ours. Also chronic idiopathic constipation is -- would be a good product for us now that we have access to the primary care marketplace.

      • 1 Reply to frank_aldridge
      • Tim Lugo - William Blair & Company L.L.C., Research Division
        Okay. And have -- you have kind of a growing exposure to primary care. Should we expect straight primary care in-licensing deal over, let's say, in the medium term?
        Carolyn J. Logan
        Most likely not. I don't -- I think we would hesitate to say never. But really, our focus is on gastrointestinal. We love products that have usage in both primary care and gastroenterology or other small specialties. So to just go for a strictly primary care product, I would say we don't see the need to do that any time soon, and that's not our plan at this point. We have lots of holes -- as big as our portfolio is, we have lots of holes still that we are looking at.
        David Amsellem - Piper Jaffray Companies, Research Division
        And then my second question is just on the debt levels, how does that play into your ability to do additional, meaningful acquisition? Is another sizable acquisition something you can explore? Should we expect to see more in-licensing along the lines of what you announced this morning?
        Adam C. Derbyshire
        And then, David, in terms of the debt level. I mean, obviously, if you take the combined or pro forma EBITDA for 2013, that gets you in that approximate 6x. If you apply to that the EBITDA for 2014, that gets you down to 4.5x. And then, obviously, we are going to be making payments toward paying down the debt. And then when the 2015 convertible bond comes due in June of 2015, that will -- we'll be paying that off at the par value of that in cash. And then where our EBITDA will be at that point in time, we'll be getting probably close to 3.5x. So you can quickly see that we can stay very active in business development. But to your point, the kinds of things that we are looking at right now are along the lines of what we announced earlier today. We're not looking at anything of the size of Santarus right now, but we will remain very active in business development.

    • that would explain the stair step run up going on with SGYP, someone buying up a stake to buyout

    • link? thank you

      Sentiment: Strong Buy

    • Indeed a great find. Where did you see this?

    • wow excellent find! going up!!

      Sentiment: Buy

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