Synergy Pharmaceuticals (SGYP) failed to hold the $6 - $6.50 a share level, losing its $1 billion market cap title in February. Why is the stock down?The market is having a tough time absorbing the share sale announced on February 3. The company said it would sell 20.3 million shares for $6.15 each. The deal closed on February 6. SGYP gets ~$120 million in cash, which it will use to commercialize Trulance. Unlike other deals biotech investors have seen where companies partner up, SGYP has 100 percent of the worldwide rights for the drug.Recall that Valeant Pharmaceuticals (VRX) bought AstraZeneca’s (AZN) SILIQ. It also has a deal with Progenics Pharmaceuticals Inc. (PGNX) – buy – for the RELISTOR tablets. SGYP has no such deals. It is taking on all the operating risks getting Trulance to market.Why do I bring up VRX? Rumor has it around 50 of Valeant’s Salix sales force left to join Synergy. The en masse turnover is of no concern for Valeant. The sales turnover is very high in the pharmaceutical drug space. What matters if this staff performing well at SGYP. Synergy cannot afford a miss in the initial launch. Weak momentum will hurt the revenue expectations for this year, which are high. The stock could re-test the $4.50 - $5.00 a share in the absence of any other news.Synergy has a good product on hand to market. Chances are good that it will succeed this year.