Cambridge-based Syros Pharmaceuticals (NASDAQ:SYRS), with a market cap of 67.91M USD as per InvestingPro data, is reducing its workforce by 35% as part of a strategic shift to accelerate the development of tamibarotene for higher-risk myelodysplastic syndrome and acute myeloid leukemia. The cut, which affects 41 employees out of its 117-person team, comes alongside significant changes in the company's leadership.
The firm's founding CEO, Nancy Simonian, announced on Monday that she will retire at the end of this year. Conley Chee, who is set to take over on December 2, will succeed her. Simonian, even after stepping down from her executive role, will continue to contribute to the company's strategic direction as a board member.
In another significant move, Chief Scientific Officer Eric Olson will be leaving the company on Friday. Concurrent with these changes, Syros Pharmaceuticals has decided to suspend investment in SY-2101 and all preclinical ventures.
These actions are part of a broader strategy to concentrate resources on the development of tamibarotene. The company's decision to reduce its workforce and halt investment in other projects underscores its commitment to expedite the drug's development process.
According to InvestingPro, Syros Pharmaceuticals holds more cash than debt on its balance sheet and has liquid assets that exceed short term obligations. This financial stability could potentially provide the company with the flexibility to focus on its strategic shift. However, the company is also known for quickly burning through cash, a factor that could pose a challenge in its pursuit of expedited drug development.
InvestingPro data reveals a revenue of 8.92M USD for the last twelve months, but the company has been experiencing a declining revenue growth rate, with a -64.65% change in the last twelve months and a -54.86% change in the last quarter of FY2023. This decline, coupled with the fact that the company has not been profitable over the last twelve months as per InvestingPro Tips, maybe a reason behind the strategic changes at Syros Pharmaceuticals.
In terms of stock performance, the company has seen a large price uptick over the last six months with a total return of 47.94%, but the stock price movements are known to be quite volatile. For more insights and tips, consider checking out InvestingPro, which offers additional tips on a variety of companies including Syros Pharmaceuticals.
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