On Tuesday, Syros Pharmaceuticals (NASDAQ:SYRS) shares maintained its Buy rating from TD Cowen, even after the company faced a clinical trial hurdle. The biopharmaceutical company recently announced the discontinuation of its SELECT-AML-1 trial.
The decision came after a prespecified interim analysis showed comparable CR/CRi (complete remission/complete remission with incomplete blood count recovery) rates between the study arms, leading to the conclusion that the trial was unlikely to meet its success criteria.
Despite this development, TD Cowen remains optimistic about Syros Pharmaceuticals' prospects. The firm highlighted that the implications for the pivotal MDS (myelodysplastic syndromes) trial are minimal. The MDS trial uses azacitidine (aza) monotherapy as a comparator, which sets a lower benchmark for success. Additionally, the SELECT MDS trial has already cleared a futility analysis, further supporting the analyst's confidence in the company's ongoing research.
The SELECT-AML-1 trial's discontinuation is a setback for Syros Pharmaceuticals, but it does not appear to have shaken the analyst's belief in the company's pipeline. The MDS trial continues to progress, and with the futility analysis passed, there seems to be a path forward for Syros in its clinical endeavors.
As the company moves past the SELECT-AML-1 trial, investors and stakeholders will be watching the developments of the MDS trial closely. The outcome of this pivotal trial could be a significant factor in Syros Pharmaceuticals' future and its position in the biopharmaceutical industry.
InvestingPro Insights
As Syros Pharmaceuticals (NASDAQ:SYRS) navigates the aftermath of its clinical trial hurdle, real-time data and insights from InvestingPro provide a deeper understanding of the company's financial health and market position. Despite the recent setback, Syros holds more cash than debt on its balance sheet, which could offer some resilience in funding future operations. Analysts have also revised their earnings upwards for the upcoming period, indicating a potential rebound in investor sentiment.
InvestingPro Data reveals a market capitalization of $50.13 million, underscoring the company's relatively small size in the biopharmaceutical sector. The revenue for the last twelve months as of Q2 2024 stands at $4.15 million, with a significant decline of 53.51% in revenue growth.
The gross profit margin during the same period is notably negative, reflecting the challenges the company faces in generating a profit from its operations. Moreover, the stock price has experienced considerable volatility, with a 1-month total return of -16.5%, which investors should consider when assessing risk.
For those looking to delve deeper into the financial nuances of Syros Pharmaceuticals, InvestingPro offers additional tips that shed light on the company's cash burn rate, valuation multiples, and profitability outlook. In fact, there are 11 more InvestingPro Tips available that could provide valuable insights for investors considering this stock. These tips are accessible through the dedicated InvestingPro platform for Syros Pharmaceuticals at https://www.investing.com/pro/SYRS.
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