Synergy Pharmaceuticals Reports 2013 Fourth Quarter and Full-Year Financial Results

  Synergy Pharmaceuticals Reports 2013 Fourth Quarter and Full-Year Financial
  Results

Business Wire

NEW YORK -- March 17, 2014

Synergy Pharmaceuticals Inc. (Nasdaq:SGYP), a developer of new drugs to treat
gastrointestinal disorders and diseases, today reported its financial results
and business update for the fourth quarter and the year ended December 31,
2013. Synergy is developing plecanatide for the treatment of chronic
idiopathic constipation (CIC) and constipation-predominant irritable bowel
syndrome (IBS-C).

Recent Developments

  *On November13, 2013, Synergy started the first of two planned pivotal
    phase 3 clinical trials to confirm the safety and efficacy of plecanatide
    in adult patients with CIC.
  *On December 24, 2013, Synergy closed patient enrollment in its plecanatide
    phase 2b clinical trial in irritable bowel syndrome with constipation
    (IBS-C)
  *On January 2, 2014, Synergy’s common stock was transferred to the NASDAQ
    Global Select Market., the highest of the three market tiers at NASDAQ.
  *On January 28, 2014, Synergy’s board of directors approved the final
    distribution ratio and declared a pro rata dividend for the spin-off of
    the shares of common stock of Synergy’s previously wholly-owned
    subsidiary, ContraVir Pharmaceuticals, Inc. (“ContraVir”).

Synergy's cash, cash equivalents and available-for-sale securities balance as
of  December 31, 2013 was  $68.2 million, as compared to $32.5 million on
December 31, 2012. During the year ended December 31, 2013, net cash provided
by financing activities was $89.2 million resulting from its controlled equity
sales of its common stock and underwritten public offering, as compared to
$52.1 million during the year ended December 31, 2012. Net cash used in
operating activities during the year ended December 31, 2013 and 2012 was
$52.6 million and $31.1 million, respectively. Net loss for the year ended
December 31, 2013 was $62.1 million or $0.73 per share, as compared to a net
loss of $39.4 million, or $0.64 per share, for the year ended December 31,
2012.

Net loss for the quarter ended December 31, 2013 was $19.9 million or $0.22
per share, as compared to a net loss of $12.0 million, or $0.18 per share, for
the quarter ended December 31, 2012. During the quarter ended December 31,
2013, non-cash expense items, principally the change in fair value of
derivative instruments and stock based compensation expense, totaled $1.9
million, or $0.02 per share, whereas such items in the quarter ended December
31, 2012 totaled $1.8 million, or $0.03 per share.

Synergy had approximately 90 million common shares issued and outstanding at
December 31, 2013.

About Synergy Pharmaceuticals Inc.

Synergy Pharmaceuticals Inc. is a biotechnology company focused on the
research and development of novel drugs for the treatment of gastrointestinal
(GI) diseases and disorders. Synergy has discovered proprietary analogs of the
human GI hormone, uroguanylin, the natural agonist for the intestinal
guanylate cyclase-C (GC-C) receptor. Both Synergy’s lead GC-C agonist,
plecanatide, and next-generation GC-C agonist, SP-333, mimic uroguanylin’s
natural functions by binding to and activating the GC-C receptor in the GI
tract to stimulate fluid and transit required for normal bowel function.
Plecanatide is in phase 3 clinical trials for chronic idiopathic constipation
and a phase 2b study for irritable bowel syndrome with constipation. SP-333 is
in phase 2 development for opioid-induced constipation and is also being
explored for ulcerative colitis. For more information please visit
www.synergypharma.com.

Forward-Looking Statements

Certain statements in this press release are forward-looking within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements may be identified by the use of forward-looking words such as
"anticipate," "planned," "believe," "forecast," "estimated," "expected," and
"intend," among others. These forward-looking statements are based on
Synergy's current expectations and actual results could differ materially.
There are a number of factors that could cause actual events to differ
materially from those indicated by such forward-looking statements. These
factors include, but are not limited to, substantial competition; our ability
to continue as a going concern; our need for additional financing;
uncertainties of patent protection and litigation; uncertainties of government
or third party payer reimbursement; limited sales and marketing efforts and
dependence upon third parties; and risks related to failure to obtain FDA
clearances or approvals and noncompliance with FDA regulations. As with any
pharmaceutical under development, there are significant risks in the
development, regulatory approval and commercialization of new products. There
are no guarantees that future clinical trials discussed in this press release
will be completed or successful or that any product will receive regulatory
approval for any indication or prove to be commercially successful. Investors
should read the risk factors set forth in Synergy's Form 10-K for the year
ended December 31, 2013 and other periodic reports filed with the Securities
and Exchange Commission. While the list of factors presented here is
considered representative, no such list should be considered to be a complete
statement of all potential risks and uncertainties. Unlisted factors may
present significant additional obstacles to the realization of forward-looking
statements. Forward-looking statements included herein are made as of the date
hereof, and Synergy does not undertake any obligation to update publicly such
statements to reflect subsequent events or circumstances.


Consolidated Balance Sheets ($ in thousands)
                                                      
                                       December 31, 2013     December 31, 2012
                                                             
Assets
Cash, cash equivalents and
short term available                   $      68,157         $      32,502

for sale securities
Prepaid expenses and other                   3,718              1,547
current assets
Total Current Assets                          71,875                34,049
Other Assets                                 683                3,356
Total Assets                           $      72,558       $      37,405
Liabilities and Stockholders'
Equity
Accounts payable                              13,542                5,255
Accrued expenses                             2,134              2,060
Total Current Liabilities                     15,676                7,315
Derivative financial                         1,534              5,258
instruments –warrants
Total Liabilities                             17,210                12,573
Total Stockholders' Equity                   55,348             24,832
Total Liabilities and                  $      72,558       $      37,405
Stockholders' Equity
                                                                    

                                                                    
Consolidated
Statement of

Operations
($ in                Three Months       Three Months
thousands                                                  Year ended         Year ended
except share         ended              ended              December 31,
and                  December 31,       December 31,                          December 31
                                                           2013
per share            2013               2012                                  2012
data)
                                                                              
Revenues             $ --               $ --               $ --               $ --
Costs and
Expenses:
Research and           16,449             9,085              50,630             29,294
development
Purchased
in-process
research               --                 --                 --                 1,000

and
development
General and           2,908          2,447          11,681         7,941      
administrative
Loss from              (19,357    )       (11,532    )       (62,311    )       (38,235    )
Operations
Other income           --                 250                --                 506
Interest and
investment             11                 68                 59                 218
income
Interest               (21        )       --                 (21        )       --
Expense
Change in fair
value of
derivative            (484       )    (764       )    149            (1,933     )

instruments -
warrants
                                                                              
Net Loss             $ (19,851    )   $ (11,978    )   $ (62,124    )   $ (39,444    )
                                                                              
Net Loss per
common share,
                     $ (0.22      )   $ (0.18      )   $ (0.73      )   $ (0.64      )
basic and
diluted
Weighted
Average Common
                      90,182,115     66,194,306     85,220,458     61,702,277 
Shares
Outstanding

Contact:

Synergy Pharmaceuticals Inc.
Media
Gem Gokmen
Office: 212-584-7610
Mobile: 646-637-3208
ggokmen@synergypharma.com
or
Investors
Bernard Denoyer
Office: 212-297-0020
Mobile: 203-300-8147
bdenoyer@synergypharma.com
 
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