Syndax Announces Closing of Public Offering of Common Stock and Exercise in Full of the Underwriters' Option to Purchase Additional Shares

Rhea-AI Summary

Syndax Pharmaceuticals, Inc. (Nasdaq: SNDX) closed a public offering of 12,432,431 shares of common stock, generating approximately $230.0 million in gross proceeds. The company now has 84,809,736 shares issued and outstanding as of December 19, 2023.

Insights

Financial Analyst

The completion of Syndax Pharmaceuticals' underwritten public offering, resulting in gross proceeds of approximately $230 million, is a substantial financial event for the company. The offering's success, indicated by the full exercise of the underwriters' option for additional shares, reflects strong market confidence in Syndax's business prospects and its pipeline of cancer therapies.

From a financial perspective, the influx of capital significantly bolsters the company's balance sheet, providing resources to accelerate the development of its clinical programs and potentially expand its research and development efforts. Investors will be keen to monitor how efficiently the funds are allocated towards advancing the company's pipeline, as well as any impact on the company's burn rate and runway.

It is essential to consider the dilutive effect of the new shares on existing shareholders. With over 12 million new shares issued, current investors' ownership percentages have decreased, which could affect the stock price. However, if the capital is utilized effectively to drive value-creating initiatives, the long-term benefits may outweigh the immediate dilution.

The involvement of prominent financial institutions as joint book-running managers adds a layer of credibility to the offering and may have contributed to its successful closure. For stakeholders, the key takeaway is the enhanced financial flexibility that Syndax now possesses, which could lead to significant advancements in its cancer treatment pipeline and potentially deliver long-term shareholder value.

Biotechnology Industry Analyst

Syndax Pharmaceuticals' recent capital raise is a critical strategic move within the biotechnology industry, where the development timeline for new therapies can span several years and require substantial investment. The company's focus on cancer treatments, a highly competitive and research-intensive area, necessitates continuous funding to sustain operations and trial progression.

The raised capital should enable Syndax to maintain momentum in its clinical trials, which is crucial for staying competitive. Positive trial results could lead to partnership opportunities, licensing deals, or even buyout prospects, each with significant implications for the company's valuation and the broader market landscape.

However, stakeholders should remain aware of the inherent risks in drug development. Setbacks in clinical trials or regulatory hurdles can quickly alter the trajectory of a biopharmaceutical company. Hence, while the successful offering provides near-term financial stability, the long-term success is contingent upon the outcomes of Syndax's clinical endeavors and their ability to navigate the regulatory environment effectively.

WALTHAM, Mass., Dec. 19, 2023 /PRNewswire/ -- Syndax Pharmaceuticals, Inc. ("Syndax," the "Company" or "we") (Nasdaq: SNDX), a clinical-stage biopharmaceutical company developing an innovative pipeline of cancer therapies, today announced the closing of its previously announced underwritten public offering of 12,432,431 shares of its common stock, which includes the exercise in full of the underwriters' option to purchase 1,621,621 additional shares. The public offering price of each share of common stock was $18.50. The aggregate gross proceeds to Syndax from this offering, before deducting underwriting discounts and commissions and estimated offering expenses, were approximately $230.0 million. Following the closing of the Offering, Syndax has 84,809,736 shares issued and outstanding as of December 19, 2023. 

Goldman Sachs & Co. LLC, J.P. Morgan, TD Cowen and Stifel acted as joint book-running managers for the offering. B. Riley Securities acted as manager for the offering.

The shares were offered pursuant to a "shelf" registration statement previously filed and declared effective by the Securities and Exchange Commission (SEC). A final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available on the website of the SEC at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained from: Goldman Sachs and Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, telephone: 866-471-2526, facsimile: 212-902-9316 or by emailing Prospectus-ny@ny.email.gs.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (866) 803-9204, or by emailing prospectuseq_fi@jpmchase.com; Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, by emailing Prospectus_ECM@cowen.com or by telephone at (833) 297-2926; or Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, California 94104, by telephone at (415) 364-2720 or by emailing syndprospectus@stifel.com.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Syndax

Syndax Pharmaceuticals is a clinical stage biopharmaceutical company developing an innovative pipeline of cancer therapies. Highlights of the Company's pipeline include revumenib, a highly selective inhibitor of the menin–KMT2A binding interaction, and axatilimab, a monoclonal antibody that blocks the colony stimulating factor 1 (CSF-1) receptor. For more information, please visit www.syndax.com or follow the Company on Twitter and LinkedIn.

Cautionary Note on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend," "believe" and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements are based on Syndax's expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from these forward-looking statements. Factors that may cause Syndax's actual results to differ from those expressed or implied in the forward-looking statements in this press release are discussed in Syndax's filings with the SEC, including the "Risk Factors" sections contained therein, as well as the risks identified in the registration statement and the final prospectus supplement relating to the offering. These forward-looking statements are based on Syndax's expectations and assumptions as of the date of this press release. Except as required by law, Syndax assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.

Syndax Contact

Sharon Klahre
Syndax Pharmaceuticals, Inc.
sklahre@syndax.com
Tel 781.684.9827

SNDX-G

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SOURCE Syndax Pharmaceuticals, Inc.

FAQ

What is the recent public offering announced by Syndax Pharmaceuticals, Inc. (SNDX)?

Syndax Pharmaceuticals, Inc. (SNDX) announced the closing of its previously announced underwritten public offering of 12,432,431 shares of its common stock, which includes the exercise in full of the underwriters' option to purchase 1,621,621 additional shares.

What was the public offering price of each share of common stock in the recent offering by Syndax Pharmaceuticals, Inc. (SNDX)?

The public offering price of each share of common stock was $18.50.

How many shares does Syndax Pharmaceuticals, Inc. (SNDX) have issued and outstanding after the closing of the offering?

Following the closing of the Offering, Syndax has 84,809,736 shares issued and outstanding as of December 19, 2023.

Who were the joint book-running managers for the offering announced by Syndax Pharmaceuticals, Inc. (SNDX)?

Goldman Sachs & Co. LLC, J.P. Morgan, TD Cowen, and Stifel acted as joint book-running managers for the offering.

Where can the final prospectus supplement and accompanying prospectus relating to the offering be obtained for Syndax Pharmaceuticals, Inc. (SNDX)?

Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained from the SEC's website or the respective investment banks involved in the offering.

Is the recent public offering by Syndax Pharmaceuticals, Inc. (SNDX) an offer to sell or buy securities?

This press release clarifies that it shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.