Davis Polk acted as special product counsel for Merrill Lynch, Pierce, Fenner & Smith Incorporated as representative of the initial purchasers in connection with a Rule 144A offering by Synergy Pharmaceuticals Inc. of an aggregate principal amount of $200 million of 7.5% convertible senior notes due 2019, which included $25 million aggregate principal amount of convertible senior notes issued pursuant to the exercise in full of the initial purchasers’ over-allotment option.  

Synergy Pharmaceuticals Inc. is a biopharmaceutical company focused on the development of novel therapies based on the naturally occurring human GI hormone, urogunaylin. Synergy has created two unique analogs of uroguanylin–plecanatide and SP-333–designed to mimic the natural hormone’s activity on the guanylate cyclase-C receptor and target a variety of GI conditions. Plecanatide is currently in two pivotal phase 3 clinical trials for chronic idiopathic constipation and has successfully completed a phase 2b study for irritable bowel syndrome with constipation. SP-333 is currently in phase 2 development for opioid-induced constipation.  

The Davis Polk equity derivatives team included partners John M. Brandow and Ray Ibrahim and associates Barry J. Gewolb and Erica B. Richey. Partner Lucy W. Farr and associate Joseph Pahl provided tax advice. All members of the Davis Polk team are based in the New York office.