Business Overview

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Overview

Business Overview

Synergy Pharmaceuticals Inc. (the “Company” or ‘Synergy”) is a biopharmaceutical company focused on the development and commercialization of novel gastrointestinal (GI) therapies. Since the Company’s inception in 2008, it has pioneered discovery, research and development efforts in the treatment of functional GI disorders and inflammatory bowel disease (IBD). Synergy's proprietary GI platform is based on uroguanylin, a naturally occurring human GI peptide, and includes two lead product candidates - plecanatide and dolcanatide.

Net cash used in operating activities was approximately $27.6 million for the three months ended March 31, 2016. As of March 31, 2016, Synergy had approximately $84.2 million of cash and cash equivalents. During the three months ended March 31, 2016, Synergy incurred losses from operations of $27.6 million. As of March 31, 2016, Synergy had working capital of approximately $68.3 million.

On May 5, 2016 Synergy announced that it has entered into definitive agreements with certain institutional investors to sell 29,948,334 shares of common stock at a price of $3.00 per share. The shares were offered and sold directly to institutional investors by the company in a registered direct offering conducted without an underwriter or placement agent. The net proceeds from the offering, after deducting estimated offering expenses, were approximately $89.7 million. The offering closed on May 6, 2016.