On Wednesday, Piper Sandler reiterated its Overweight rating on Syros Pharmaceuticals (NASDAQ:SYRS), with a steady price target of $5.00. The firm's positive stance is based on the potential of tamibarotene, an oral retinoic acid receptor alpha (RARα) agonist, which is currently being evaluated in a Phase III trial for Myelodysplastic Syndromes (MDS).
The SELECT-MDS trial has enrolled 190 patients with higher-risk MDS to compare the efficacy of a combination treatment of tamibarotene and azacitidine versus azacitidine alone. This study is designed to be 90% powered to detect a significant difference in the complete response (CR) rate, with a statistical significance threshold set at p
Previous Phase III trials of azacitidine monotherapy for this condition have reported CR rates ranging from 14-17%.
Despite a previous setback where a triplet combination including tamibarotene did not show an improvement in CR rates over a doublet therapy in a separate trial for Acute Myeloid Leukemia (SELECT-AML), Piper Sandler remains optimistic.
The firm's confidence is rooted in the mechanism of action (MoA) of tamibarotene and supportive data from earlier Phase II trials. They anticipate that the tamibarotene and azacitidine combination will demonstrate a statistically significant improvement in CR rates over azacitidine monotherapy in the ongoing SELECT-MDS trial.
In other recent news, Syros Pharmaceuticals has presented significant research findings at the Society of Hematologic Oncology (SOHO) 12th Annual Meeting. Despite setbacks in the SELECT-AML-1 trial, the company continues to progress with its MDS trial, which has cleared a futility analysis.
The company's financial health remains a focus, as revealed in its Q2 2024 outcomes, with preparations underway for the first New Drug Application filing and plans for an independent launch in the US. Syros is also seeking a partner in Europe to commercialize its drug, tamibarotene.
Analysts from TD Cowen and Piper Sandler maintain their Buy and Overweight ratings respectively for Syros Pharmaceuticals, despite recent clinical trial hurdles. However, H.C. Wainwright has lowered its price target due to concerns over recent clinical trial data, while still maintaining its Buy rating.
These are recent developments in the ongoing efforts of Syros Pharmaceuticals to advance its research and maintain its financial health.
InvestingPro Insights
Despite Piper Sandler's optimistic outlook on Syros Pharmaceuticals (NASDAQ:SYRS), recent InvestingPro data reveals a complex financial picture. The company's market capitalization stands at $66.22 million, reflecting its current position in the biotech sector. Syros has shown a significant return over the last week and month, with price total returns of 29.32% and 31.38% respectively, indicating recent investor interest possibly tied to developments in its clinical trials.
However, InvestingPro Tips highlight some challenges. The company is quickly burning through cash and is not profitable over the last twelve months, with a negative gross profit margin of -2223.26%. This aligns with the typical profile of biotech companies investing heavily in R&D. On a positive note, Syros holds more cash than debt on its balance sheet, which could provide some financial flexibility as it pursues its clinical trials.
For investors considering Syros, it's worth noting that InvestingPro offers 16 additional tips that could provide deeper insights into the company's financial health and market position. These additional tips could be particularly valuable given the volatile nature of biotech stocks and the importance of thorough due diligence in this sector.
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