NEW YORK, Feb. 12, 2019 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Synergy Pharmaceuticals Inc. (“Synergy” or the “Company”) (NASDAQ: SGYP). Such investors are encouraged to obtain additional information and assist the investigation by visiting the firm’s site: www.bgandg.com/sgyp.
The investigation concerns whether Synergy and certain of its officers and/or directors have violated federal securities laws.
On September 5, 2017, Synergy entered into a $300 million senior secured loan from CRG Partners III L.P. (the “CRG Loan”), which in its initial incarnation provided an immediate cash infusion of $100 million with a second $100 million tranche of financing less than six months later, on or before February 28, 2018 and a third tranche of up to $100 million in the following thirteen months. Then, on October 25, 2018, Synergy disclosed that the Company had attempted to renegotiate the CRG Loan, but that its efforts to further amend the agreement with respect to financial and revenue covenants had been unsuccessful, that the Company might not be able to satisfy the minimum liquidity covenant in the term loan agreement or secure alternative financing, and that as a result, Synergy might be forced to default on the term loan agreement. With respect to TRULANCE, the Company’s lead product, Synergy also disclosed that uptake in 2018 was slower than anticipated due to a highly competitive market access environment and slower than anticipated overall market growth. As a result, the Company was projecting total net sales of TRULANCE for 2018 to be between $42 and $47 million, significantly below the minimum revenue covenant of $61 million as set forth in the term loan agreement. Synergy further disclosed that if TRULANCE sales failed to meet that threshold, the Company would be subject to prepayment penalties equal to $38 million to $51 million. Following this news, Synergy’s stock price fell $0.97 per share, or 69.3%, to close at $0.43 per share on October 26, 2018.
If you are aware of any facts relating to this investigation, or purchased Synergy shares, you can assist this investigation by visiting the firm’s site: www.bgandg.com/sgyp. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com