H.C. Wainwright initiated coverage of Synthetic Biologics (NYSE AMERICAN:SYN) with a “buy” rating and price target of $1. The stock finished at 25 cents on May 17.
Analyst Edward White writes that the new coverage is based on the outlook of Synthetic’s pipeline, which contains ribaxamase, an oral biologic to protect the gut microbiome from IV beta-lactam antibiotics, which could cause clostridium difficile infection (CDI).
The company also is developing SYN-010 for the potential treatment of irritable bowel syndrome with constipation (IBS-C). Ribaxamase is a Phase 3-ready asset that could move forward with financing, he added. The company expects to initiate a Phase 3 study in the second half of 2019.
SYN-010 has completed two Phase 2 studies. The company is currently evaluating potential strategic relationships for the development of both drugs, Mr. White said, adding that CDI and IBS-C are both more than $1-billion potential market opportunities. Approximately one-third of the IBS cases are IBS-C.
