Synergy Pharmaceuticals Inc (NASDAQ:SGYP) issued its financial report and business update for the quarter closed September 30, 2017. Gary S. Jacob, the CEO, expressed that they remain extremely thrilled by the continued positive drive for TRULANCE in the CIC segment. The investments they have made and the continued implementation of their commercial plan have allowed them to drive strong initial customer demand, getting TRULANCE coverage on key commercial, Medicaid and Medicare Part D plans within the preliminary six months of release.
Their advancement in market access shows that payers identify the prospective value TRULANCE can provide CIC patients, which they will use as they move towards the expected expansion of the label with the IBS-C indication in January 2018. With growing consumer demand, better market access and the projected expansion into IBS-C, Synergy has a notable prospect to drive long-term value and further growth for patients, healthcare providers and their shareholders.
The financial performance
In Q3 2017, total net sales came at $5 million, a 117.4% jump over the prior quarter. Net cash utilized in operating activities stood at $59.3 million. For Q3 2017, operating expenses included around $6.6 million in research and development costs and $44 million in selling, general and administrative expenses. Synergy posted a net loss of $48.9 million, while cash and cash equivalents came at nearly $117.8 million at the close of the quarter.
In September 2017, Synergy finalized a senior secured term loan of up to $300 million. The firm borrowed $100 million at the closing time. This senior secured term Loan records a maturity date of June 30, 2025 and has interest at a rate of 9.5% per annum, with interest-only payments done quarterly until June 30, 2022.
In the last trading session, the stock price of Synergy declined more than 8% to close the day at $2.72.
