On Tuesday, JMP Securities maintained a positive outlook on Syros Pharmaceuticals (NASDAQ:SYRS), reiterating a Market Outperform rating with a steady price target of $12.00. The affirmation follows an investor event hosted by Syros earlier in the day, which focused on the potential of tamibarotene, a drug in development for the treatment of higher-risk myelodysplastic syndromes (HR-MDS) and acute myeloid leukemia (AML).
During the event, Syros' management detailed the retinoic acid receptor alpha (RARα) mechanism underpinning tamibarotene's function, as well as the design and prior results of ongoing clinical trials. Key opinion leaders (KOLs) also provided insights into the disease background, the limitations of current treatment options, and the urgent need for new therapies in this space. The KOLs expressed their enthusiasm about the drug's potential.
JMP Securities' confidence is particularly bolstered by the anticipation of significant clinical updates in the second half of 2024. The firm's conviction is supported by the upcoming results from the Phase 2 study of tamibarotene in AML, expected to be updated in the third quarter of 2024. Additionally, top-line Phase 3 complete remission (CR) results for HR-MDS are projected to be available by mid-fourth quarter of 2024.
The analyst's stance is grounded in a risk-adjusted, discounted cash flow (DCF) analysis, which underpins the $12 price target for Syros' shares. This target reflects the firm's assessment of the potential market impact and financial benefits that successful clinical outcomes could bring to Syros Pharmaceuticals.
Investors and stakeholders in the biopharmaceutical sector continue to monitor the progress of Syros' clinical developments, with a keen interest in the transformative potential of tamibarotene for patients with HR-MDS and AML.
In other recent news, Syros Pharmaceuticals revealed its financial results for the first quarter of 2024. The development of tamibarotene, a potential treatment for hematologic malignancies, remains a key focus for the company. The Phase 3 SELECT-MDS-1 trial for tamibarotene successfully passed an interim futility analysis and the FDA has granted it a fast-track designation for specific AML patients. Despite a decrease in revenue resulting from the termination of a partnership with Pfizer (NYSE:PFE) and a net loss for the quarter, the company's financial position is expected to remain stable until the third quarter of 2025 due to an extended interest-only period on a loan and the potential for increased funding.
Syros Pharmaceuticals is also progressing with launch readiness activities for tamibarotene in the US. The company reported a decrease in R&D and G&A expenses due to strategic focus and cost management. The exact timing for a decision on pivotal development in AML remains unclear. However, final data on the SELECT-MDS-1 trial's primary endpoint is expected in the last quarter of the year and an additional analysis of the SELECT-AML-1 trial is due in the third quarter, with pivotal development decisions pending. These are some of the recent developments regarding Syros Pharmaceuticals.
InvestingPro Insights
As Syros Pharmaceuticals (NASDAQ:SYRS) garners attention with its promising drug tamibarotene, real-time data from InvestingPro provides a deeper look into the company's financial health and market performance. With a market capitalization of $154.89 million and recent significant returns, including a 101.74% return over the last year and a 16.9% return over the last month, the company shows notable market activity. However, it's important to note that Syros has been trading at a high Price / Book multiple of 10.3.
InvestingPro Tips highlight that Syros holds more cash than debt on its balance sheet, providing a cushion for operational needs. Yet, analysts have raised concerns about the company's cash burn rate and lack of profitability over the last twelve months, suggesting that potential investors should be aware of these financial dynamics. Syros does not pay a dividend, which is typical for companies focused on reinvesting earnings into research and development.
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