Piper Sandler has adjusted its price target for Syros Pharmaceuticals (NASDAQ: NASDAQ:SYRS), a biopharmaceutical company, to $5.00, down from the previous $13.00, while maintaining an Overweight rating on the stock.
The revision follows a recent development in the company's clinical trials.
Syros Pharmaceuticals announced that its Phase II SELECT-AML trial, which involved 40 newly diagnosed unfit AML patients, did not meet the necessary criteria to continue. The trial compared the combination treatment of tamibarotene, venetoclax, and azacitidine (tami/ven/aza) to a control group receiving just venetoclax and azacitidine (ven/aza). The combination treatment showed a complete response (CR/CRi) rate of 65% compared to 70% for the control.
Despite the setback, tamibarotene was reported to be generally well tolerated, with no new safety signals emerging. Consequently, Syros has decided to halt further enrollment for the full 80 patients initially planned for the SELECT-AML trial. However, the company will still present the gathered data at the upcoming Society of Hematologic Oncology (SOHO) meeting scheduled for September 4-7, 2024.
Syros has successfully completed enrollment for its Phase III SELECT-MDS trial, which includes 190 higher-risk MDS patients. The company anticipates reporting top-line CR data from this study in the mid-fourth quarter of 2024.
Financially, Syros closed the second quarter of 2024 with $79 million in cash reserves. The company has an outstanding debt of $41 million to Oxford, which is expected to fund its operations into the third quarter of 2025.
Syros has seen a series of developments. H.C. Wainwright revised its stock price target for Syros Pharmaceuticals, lowering it from $15.00 to $6.00 due to concerns over recent clinical trial data, while maintaining a Buy rating on the stock.
Syros has halted enrollment in the SELECT-AML-1 Phase 2 study of tamibarotene for acute myeloid leukemia (AML) due to a recent data review. However, no new safety signals were associated with the regimen, which is seen as a positive sign for the ongoing Phase 3 SELECT-MDS-1 study.
In financial updates, Syros reported its Q2 2024 outcomes and is preparing for its first New Drug Application filing, with plans for an independent launch in the US. The company is implementing cost-reduction measures to focus on data collection and preparation for the commercial launch. Syros is also seeking a partner in Europe to commercialize tamibarotene.
InvestingPro Insights
Following Piper Sandler's recent price target adjustment for Syros Pharmaceuticals, InvestingPro provides further financial context. With a market cap of approximately $50.4 million, Syros is trading at a notably high revenue valuation multiple. Despite the challenges faced in clinical trials, it's worth noting that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility in the near term. However, analysts have highlighted concerns such as Syros's rapid cash burn and weak gross profit margins, which reflect in a negative revenue growth of -53.51% over the last twelve months as of Q2 2024.
InvestingPro Tips also reveal that Syros does not pay a dividend and has been trading at 61.32% of its 52-week high, indicating significant volatility in its stock price. While three analysts have revised their earnings upwards for the upcoming period, the overall sentiment remains cautious, as the stock has performed poorly over the last month with a price total return of -16.5%. For investors seeking more detailed analysis, there are additional InvestingPro Tips available, which could help in making a more informed decision regarding Syros Pharmaceuticals.
For those interested, more comprehensive insights and tips on Syros Pharmaceuticals can be found on InvestingPro, which includes further analysis and metrics to assist investors in their evaluation of the company's financial health and stock performance.
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