Synergy Pharmaceuticals Raises $7.09 Million in Common Stock Financing

NEW YORK--(Business Wire)--
Synergy Pharmaceuticals, Inc. (OTC BB:SGYP), a developer of new drugs to treat
gastrointestinal disorders and diseases, announced today that it has completed
the final tranche of its private placement in which it raised gross proceeds of
an aggregate $7,092,500 million through the sale of 10,132,143 shares of common
stock at a price of $0.70 per share.

The proceeds from the financing will be used to fund a Phase IIa clinical trial
of Synergy`s SP-304 for chronic constipation which the Company plans to initiate
in late 2009 or early 2010.

"This financing will enable Synergy to reach a critical milestone in its
clinical development process, namely the completion of the Phase IIa
proof-of-concept clinical trial in patients with chronic constipation, and also
will provide clear potential for the drug to treat patients with
constipation-predominant irritable bowel syndrome," said Mr. Gabriele Cerrone,
Chairman of Synergy. "The successful financing in this challenging environment
in our opinion reflects the strong interest in SP-304 and the GC-C receptor
agonist class of drugs."

The securities issued in the private placement have not been registered under
the Securities Act of 1933, as amended. Accordingly, these securities may not be
offered or sold in the United States, except pursuant to the effectiveness of a
registration statement or an applicable exemption from the registration
requirements of the Securities Act. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy the securities.

About SP-304

SP-304 is a member of a new class of non-systemic drugs for treatment of chronic
constipation (CC), irritable bowel syndrome with constipation (IBS-C) and other
GI diseases. SP-304 is a synthetic analog of uroguanylin, a natriuretic hormone
that regulates ion and fluid transport in the GI tract. Orally administered
SP-304 binds to and activates guanylate cyclase C (GC-C) expressed on epithelial
cells lining the GI mucosa, resulting in activation of the cystic fibrosis
transmembrane conductance regulator (CFTR), and leading to augmented flow of
chloride and water into the lumen of the gut, facilitating bowel movement. In
animal models, oral administration of SP-304 promotes intestinal secretion as
well as ameliorating gastrointestinal inflammation.

About Chronic Constipation

Chronic constipation is a very common gastrointestinal disorder. Up to 26
million Americans suffer from the disorder, and of this population about 5
million have a severe condition necessitating relief. The prevalence of the
disorder is similar in other developed countries. Patients with chronic
constipation often experience hard stools, straining during bowel movements and
not enough bowel movements during the week. People with chronic constipation can
experience serious discomfort which adversely affects their ability to work and
their quality of life.

About Irritable Bowel Syndrome

Up to one sixth of adults experience inflammatory bowel syndrome (IBS), a
condition marked by disturbed bowel function and abdominal pain. IBS patients
can have three different sets of symptoms; diarrhea-predominant (IBS-D),
constipation-predominant (IBS-C) and mixed or alternating disorder (IBS-M). The
split in prevalence between the forms is about 1/3rd each. In addition, most
patients suffering from the mixed form of IBS (IBS-M) are believed to mainly
have constipation. An estimated 10 million people in the US and an additional 10
million people in the EU suffer from IBS-C. IBS (all forms) accounts for 12% of
adult visits to primary care physicians in the US.

About Synergy Pharmaceuticals, Inc.

Synergy is a biopharmaceutical company focused on the development of new drugs
to treat gastrointestinal disorders and diseases. Synergy's proprietary drug
SP-304 began clinical development in June 2008 for gastro-intestinal disorders.
SP-304 recently finished a Phase I clinical trial in volunteers and the Company
plans to initiate a Phase IIa clinical trial of SP-304 in chronic constipation
patients in late 2009 or early 2010. SP-304 is a synthetic analog of the human
gastrointestinal hormone uroguanylin, and acts by activating the guanylate
cyclase C (GC-C) receptor on epithelial cells of the GI tract. More information
is available at http://www.synergybio.net.

Forward-Looking Statements

Certain statements made in this press release are forward-looking. Such
statements are indicated by words such as "expect," "should," "anticipate" and
similar words indicating uncertainty in facts and figures. Although Synergy
believes that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations reflected in such
forward-looking statements will prove to be correct. As discussed in the Synergy
Pharmaceuticals Annual Report on Form 10-K for the year ended December 31, 2008,
and other periodic reports, as filed with the Securities and Exchange
Commission, actual results could differ materially from those projected in the
forward-looking statements as a result of the following factors, among others:
uncertainties associated with product development, the risk that products that
appeared promising in early clinical trials do not demonstrate efficacy in
larger-scale clinical trials, the risk that Synergy will not obtain approval to
market its products, the risks associated with dependence upon key personnel and
the need for additional financing.

Synergy Pharmaceuticals, Inc.
Gary S. Jacob, Ph.D. +1-212-297-0020
President and CEO
gjacob@synergybio.net

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