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Jefferies sets buy rating on Syndax stock

EditorAhmed Abdulazez Abdulkadir
Published 06/28/2024, 06:06 AM
SNDX
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On Friday, Syndax Pharmaceuticals (NASDAQ:SNDX) received a Buy rating from Jefferies, with a price target set at $37.00. Syndax is on the brink of a significant transition to commercialization with two upcoming PDUFA dates in the second half of the year.

The company's lead program, revumenib, a menin inhibitor for the treatment of acute myeloid leukemia (AML), is anticipated to have a competitive advantage as the first-to-market for 40% of AML cases, with its PDUFA date scheduled for September 26, 2024. Additionally, Syndax's anti-CSF1R axatilimab, aimed at treating chronic graft versus host disease (GvHD), has a PDUFA date set for August 28, 2024.

The analyst from Jefferies highlighted the potential of revumenib based on a proprietary physician survey, which suggests that being first-to-market could provide a durable competitive edge in a significant portion of the AML market. This advantage is expected to positively influence the commercial prospects for the drug.

Jefferies' assessment also considers the financial aspects of Syndax's transition, noting the $1.2 billion risk-adjusted peak sales potential of the company's pipeline. This figure is juxtaposed with the company's enterprise value (EV), also at $1.2 billion, indicating an attractive opportunity for investment in Syndax Pharmaceuticals.

The upcoming PDUFA dates are critical milestones for Syndax as they move toward commercializing their therapies. The company's progression into the commercial stage marks a pivotal development in its operations, potentially reshaping its market position and financial future.

In other recent news, Syndax Pharmaceuticals is making significant strides in the biotech industry, with Stifel raising the company's stock target due to optimism regarding drug approvals. The financial firm increased its price target for Syndax shares to $42.00 while maintaining a Buy rating. This adjustment is based on Syndax's anticipation of early approval for its drug Revumenib, used for treating relapsed/refractory KMT2Ar leukemia.

Syndax's management has indicated their readiness for a third-quarter product launch, hinting at potential availability in the near future. The company is also progressing towards a fourth-quarter 2024 readout of pivotal data for its R/R NPM1m AML treatment.

In addition to these developments, Syndax Pharmaceuticals and Pyxis Oncology have made significant additions to their respective boards. Syndax welcomed Aleksandra Rizo, M.D., Ph.D., an expert in hematology drugs, while Pyxis appointed Michael A. Metzger, the current CEO of Syndax. These appointments reflect the strategic shifts within both organizations.

Lastly, Syndax recently reported a strong cash position of $522 million, expected to last through 2026, and has been consistently rated "Overweight" by analysts from firms such as Barclays Capital Inc. and JPMorgan.

InvestingPro Insights

Amidst the anticipation of Syndax Pharmaceuticals' transition to commercialization, current metrics from InvestingPro provide a deeper financial context. The company holds a market capitalization of $1.72 billion, which reflects investor confidence in its potential despite the current lack of profitability, as indicated by a negative P/E ratio of -6.27. Analysts have revised their earnings upwards for the upcoming period, suggesting optimism surrounding Syndax's future performance. Additionally, the company's liquid assets surpass its short-term obligations, which could be a critical factor in supporting its operations through the PDUFA dates and beyond.

InvestingPro Tips highlight that Syndax holds more cash than debt on its balance sheet, an encouraging sign for investors concerned about financial stability as the company approaches significant milestones. Moreover, while analysts do not anticipate the company will be profitable this year, the strong return over the last five years demonstrates a track record that may reassure long-term investors. For those interested in further analysis and additional tips, there are 8 more insights available on InvestingPro for Syndax Pharmaceuticals, which can be accessed with a special offer using the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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