Synergy sees FY18 TRULANCE net sales $42M-$47M
Synergy Pharmaceuticals said that TRULANCE uptake in 2018 has been slower than anticipated due to a highly competitive market access environment and slower than anticipated overall market growth. As a result, based on the company's current updated forecasts, Synergy is projecting TRULANCE total net sales for 2018 to be between $42M-$47M, which would be below the minimum revenue covenant of $61M set forth in its term loan agreement with CRG. Under the terms of the agreement, Synergy will be required to repay principal and pay prepayment penalties in an amount equal to $38M-$51M if total net sales fall within the expected range noted above. Such principal repayment and prepayment penalties will be due no later than March 31, 2019. As previously announced, the company has continued to evaluate opportunities to reduce cash expenditures to better align with anticipated revenues and available capital.