Synergy Pharmaceuticals Inc. Announces Closing of $89.8 Million Registered Direct Offering of Common Stock

NEW YORK–(BUSINESS WIRE)– Synergy Pharmaceuticals Inc. (NASDAQ:SGYP), a biopharmaceutical company
focused on the development and commercialization of novel
gastrointestinal (GI) therapies, today announced that it has closed a
registered direct offering of $89.8 million of common stock at a price
of $3.00 per share.

Synergy intends to use the net proceeds from the offering to fund its
commercialization activities for plecanatide, further clinical
development of plecanatide and dolcanatide and for working capital and
other general corporate purposes.

The securities described above were offered pursuant to a shelf
registration statement (File No. 333-205484), which was declared
effective by the United States Securities and Exchange Commission
(« SEC ») on July 14, 2015. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy any of the
securities described herein, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. Copies of the prospectus supplement and the accompanying
base prospectus relating to this offering may be obtained at the SEC’s
website at http://www.sec.gov.

About Synergy Pharmaceuticals Inc.

Synergy is a biopharmaceutical company focused on the development and
commercialization of novel gastrointestinal (GI) therapies. Our
proprietary GI platform is based on uroguanylin and includes two lead
product candidates – plecanatide and dolcanatide. Plecanatide is our
first uroguanylin analog currently being evaluated for use as a
once-daily tablet for two functional GI disorders, chronic idiopathic
constipation and irritable bowel syndrome with constipation. Plecanatide
is a 16-amino acid peptide that is structurally similar to uroguanylin,
a naturally occurring human GI peptide, with the exception of a single
amino acid change. Plecanatide is designed to replicate the function of
uroguanylin by working locally in the upper GI tract to stimulate
digestive fluid movement and support regular bowel function. Dolcanatide
is our second uroguanylin analog currently being explored for
inflammatory bowel disease. Dolcanatide is designed to be an analog of
uroguanylin with enhanced resistance to standard digestive breakdown by
proteases in the intestine. 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, 2015 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.

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