On Wednesday, Brookline Capital Markets maintained its Buy rating and $37.00 price target for Syros Pharmaceuticals (NASDAQ:SYRS).
The firm's optimism is based on the potential of Syros's drug, tamibarotene, in treating different forms of myelodysplastic syndrome (MDS), a type of blood cancer. The analyst highlighted the distinction between low-risk MDS (LR-MDS) and high-risk MDS (HR-MDS), noting that treatment goals vary significantly between the two, with LR-MDS focusing on blood lineage improvements and HR-MDS on blast reduction.
Brookline Capital Markets pointed out the challenges in clinical trials for HR-MDS due to the disease's heterogeneity and the evolving understanding of risk factors and mutations. However, the firm believes that the design of Syros's pivotal phase III SELECT-MDS-1 study, which targets RARA-positive MDS patients, could partly eliminate these issues. The study's primary endpoint, complete response (CR), is considered highly relevant to the treatment's success.
Syros announced in March 2025 that it had completed the enrollment of 190 patients for the SELECT-MDS-1 study, with pivotal CR data expected in mid-Q4 2024. Tamibarotene has received FDA Fast Track designation for HR-MDS, which underscores its potential and the unmet need for treatment in this patient population.
Brookline also referenced positive findings from 2022 that suggest the market for tamibarotene in MDS could be larger than previously estimated.
Additionally, early data from the SELECT-AML-1 study for acute myeloid leukemia (AML) showed a 100% CR/CRi rate, compared to a 70% rate for the standard-of-care control arm, which the firm finds highly encouraging.
The analyst expressed confidence in the drug's role in treating difficult-to-treat diseases and noted the importance of any improvement for patients refractory to current treatments. Brookline anticipates that Syros will file for approval of SY-1425 for both AML and MDS in the frontline setting in 2025, with a potential product launch the same year. The firm projects $130.4 million in SY-1425 sales for 2025, which could grow to an estimated $1.9 billion by 2030.
In other recent news, Syros Pharmaceuticals has been the subject of considerable attention due to its financial results for the first quarter of 2024 and the ongoing development of tamibarotene, a potential treatment for hematologic malignancies.
JMP Securities has maintained a positive outlook on the company, reiterating a Market Outperform rating with a steady price target of $12.00. This follows an investor event hosted by Syros, which highlighted the potential of tamibarotene for treating higher-risk myelodysplastic syndromes (HR-MDS) and acute myeloid leukemia (AML).
Despite a decrease in revenue due to the termination of a partnership with Pfizer (NYSE:PFE) and a net loss for the quarter, Syros' financial position is expected to remain stable until the third quarter of 2025. This is due to an extended interest-only period on a loan and the potential for increased funding. Moreover, the company reported a decrease in R&D and G&A expenses, indicating effective cost management.
These are among the recent developments at Syros Pharmaceuticals.
InvestingPro Insights
As Syros Pharmaceuticals (NASDAQ:SYRS) advances its drug tamibarotene through clinical studies, investors are closely monitoring the company's financial health and stock performance. According to recent data from InvestingPro, Syros has a market capitalization of $155.02 million and is trading at a high Price / Book multiple of 10.3 as of Q1 2024. Despite the challenges highlighted by Brookline Capital Markets, such as the heterogeneity of HR-MDS, Syros has shown a strong return over the last year with an impressive 97.95% price total return. This could be indicative of investor optimism surrounding the potential of tamibarotene.
InvestingPro Tips suggest that while Syros holds more cash than debt on its balance sheet, it is quickly burning through cash and has not been profitable over the last twelve months. These factors are critical for investors to consider, especially as the company approaches pivotal CR data announcements and potential drug approval filings. For those looking to delve deeper into Syros's financials and stock performance, InvestingPro offers additional tips, with the complete list available at their dedicated page for Syros. Moreover, interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights into the company's prospects.
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