Syndax Pharmaceuticals Reports Third Quarter 2020 Financial Results and Provides Clinical and Business Update

Rhea-AI Summary

Syndax Pharmaceuticals (SNDX) reported its Q3 2020 financial results, highlighting progress in its cancer therapy pipeline. The company is advancing the Phase 1 AUGMENT-101 trial for SNDX-5613, showing promising initial results in patients with MLL-r and NPM1 mutant acute leukemias. Additionally, after discussions with the FDA, Syndax plans to initiate a pivotal trial for axatilimab by year's end, targeting chronic graft versus host disease (cGVHD). Financially, Syndax reported a net loss of $20.4 million, with cash reserves of $170.2 million as of September 30, 2020.

Positive

• Promising initial data from the AUGMENT-101 trial for SNDX-5613 indicates clinical activity.
• Plans to commence a pivotal trial for axatilimab following FDA discussions.
• Cash reserves of $170.2 million support ongoing clinical activities.

Negative

• Net loss increased to $20.4 million in Q3 2020, up from $12.8 million in the prior year.
• R&D expenses rose to $14.4 million, reflecting increased clinical activities and milestone payments.

WALTHAM, Mass., Nov. 2, 2020 /PRNewswire/ -- Syndax Pharmaceuticals, Inc. ("Syndax," the "Company" or "we") (Nasdaq:SNDX), a clinical stage biopharmaceutical company developing an innovative pipeline of cancer therapies, today reported its financial results for the third quarter ended September 30, 2020. In addition, the Company provided a clinical and business update.

"We continue to make exciting progress in the Phase 1 portion of the AUGMENT-101 trial of SNDX-5613, our highly selective, potent, oral menin inhibitor, in adult and pediatric patients with acute leukemias that harbor MLL-r and NPM1 genetic alterations," said Briggs W. Morrison, M.D., Chief Executive Officer of Syndax.  "We are highly encouraged by initial data from this study, which demonstrated clear clinical activity in this difficult to treat population of patients with genetically defined acute leukemias. We remain on track to present Phase 1 data from AUGMENT-101 and commence the Phase 2 portion in early 2021."

Dr. Morrison added, "In addition, following recent interactions with the FDA, we are excited to take the next step of initiating a pivotal trial for axatilimab, our anti-CSF-1R monoclonal antibody, in patients with cGVHD which we expect by the end of this year. We are encouraged by the clinical activity and overall safety we've seen in the ongoing trial, and firmly believe axatilimab has the potential to serve as an effective intervention for patients with cGVHD. We look forward to sharing updated results from the Phase 1 trial during an oral presentation at the ASH Annual Meeting in December."

Pipeline Updates

SNDX-5613

• In August 2020, the Company enacted the following enhancements to the Phase 1 portion of the AUGMENT-101 trial in patients with MLL-r and NPM1 mutant acute leukemias: focusing enrollment exclusively on patients with mixed lineage leukemia rearranged (MLL-r) and nucleophosmin (NPM1) mutant acute leukemias; backfilling any dose escalation cohort up to a total of 12 patients if efficacy has been observed at that dose level; and expansion of enrollment to include pediatric patients over 30 days old. These enhancements were supported by initial clinical data, as well as insights from emerging data in the pediatric compassionate use setting. Enrollment in the amended Phase 1 portion remains ongoing, with a data presentation expected in early 2021. In early 2021, the Company also anticipates commencing the Phase 2 portion of AUGMENT-101, which it believes could serve as the basis for registration. SNDX-5613 was previously granted Orphan Drug Designation for the treatment of adult and pediatric acute myeloid leukemia by the U.S. Food and Drug Administration (FDA).

Axatilimab

• The Company today announced that following its End-of-Phase 1 meeting with the FDA, it has aligned on a regulatory path for axatilimab, its anti-CSF-1R monoclonal antibody, for the treatment of chronic graft versus host disease (cGVHD). The Company plans to commence a pivotal Phase 2 trial, AGAVE-201, to assess the safety and efficacy of different doses and schedules of axatilimab for the treatment of patients with cGVHD. The primary endpoint will assess objective response rate based on the 2014 NIH consensus criteria for GVHD with key secondary endpoints including duration of response and improvement in modified Lee Symptom Scale score. The Company expects to begin enrollment by year-end, with topline data anticipated in 2023.
• Enrollment remains ongoing in the Phase 2 portion of the Phase 1/2 trial evaluating axatilimab for the treatment of patients with cGVHD. In previously announced preliminary data from the Phase 1 portion of the trial, axatilimab demonstrated compelling clinical activity and a well-tolerated safety profile. The Company will present updated data from the Phase 1 portion in an oral presentation during the American Society of Hematology (ASH) Virtual Annual Meeting in December. Abstracts for the meeting, which will be held December 5-8, 2020, will be available on Thursday, November 5, 2020 at 9:00 a.m. ET.

Financial Update and Guidance

As of September 30, 2020, Syndax had cash, cash equivalents and short-term investments of $170.2 million and 44.4 million shares and share equivalents issued and outstanding which included 38.8 million shares of common stock and pre-funded warrants to purchase 5.6 million shares of common stock.

Third quarter 2020 research and development expenses increased to $14.4 million from $9.9 million for the prior year period. The increase was primarily due to increased clinical activity for SNDX-5613 and axatilimab and a $2.0 million milestone payable to UCB upon the achievement of a certain milestone.

General and administrative expenses for the third quarter 2020 increased to $5.8 million from $3.6 million for the prior year period. This increase was primarily due to employee related expenses including a one-time non-cash stock compensation expense.

For the three months ended September 30, 2020, Syndax reported a net loss attributable to common stockholders of $20.4 million or $0.46 per share compared to $12.8 million or $0.41 per share for the prior year period.

Financial Guidance

For the fourth quarter of 2020, research and development expenses are expected to be $15 to $20 million, and total operating expenses are expected to be $20 to $25 million.

Conference Call and Webcast

In connection with the earnings release, Syndax's management team will host a conference call and live audio webcast at 4:30 p.m. ET today, Monday, November 2, 2020.

The live audio webcast and accompanying slides may be accessed through the Events & Presentations page in the Investors section of the Company's website at www.syndax.com.  Alternatively, the conference call may be accessed through the following:

Conference ID: 7974533 
Domestic Dial-in Number: (855) 251-6663
International Dial-in Number: (281) 542-4259
Live webcast: https://edge.media-server.com/mmc/p/62ujymuo

For those unable to participate in the conference call or webcast, a replay will be available on the Investors section of the Company's website, www.syndax.com.

About Syndax Pharmaceuticals, Inc.

Syndax Pharmaceuticals is a clinical stage biopharmaceutical company developing an innovative pipeline of cancer therapies. The Company's pipeline includes SNDX-5613, a highly selective inhibitor of the Menin–MLL binding interaction, axatilimab, a monoclonal antibody that blocks the colony stimulating factor 1 (CSF-1) receptor, and entinostat, a class I HDAC inhibitor. For more information, please visit www.syndax.com or follow the Company on Twitter and LinkedIn. 

Syndax's 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. Forward-looking statements contained in this press release include, but are not limited to, statements about the progress, timing, clinical development and scope of clinical trials and the reporting of clinical data for Syndax's product candidates, the potential use of our product candidates to treat various cancer indications, Syndax's expected fourth quarter research and development expenses, and expected total operating expenses. Many factors may cause differences between current expectations and actual results including unexpected safety or efficacy data observed during preclinical or clinical trials, clinical trial site activation or enrollment rates that are lower than expected, changes in expected or existing competition, changes in the regulatory environment, the COVID-19 pandemic may disrupt our business and that of the third parties on which we depend, including delaying or otherwise disrupting our clinical trials and preclinical studies, manufacturing and supply chain, or impairing employee productivity, failure of Syndax's collaborators to support or advance collaborations or product candidates and unexpected litigation or other disputes. Other 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 U.S. Securities and Exchange Commission, including the "Risk Factors" sections contained therein. 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 PHARMACEUTICALS, INC.
(unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
			September 30,		December 31,
(In thousands)			2020		2019
Cash, cash equivalents and short-term investments			$         170,159		$          59,775
Total assets			$         179,309		$          63,525
Total liabilities			$           47,332		$          31,925
Total stockholders' equity (deficit)			$         131,977		$          31,600
Common stock outstanding			38,834,381		27,140,484
Common stock and common stock equivalents*			51,852,235		42,292,534
*Common stock and common stock equivalents:
	Common stock		38,834,381		27,140,484
	Common stock warrants (pre-funded)		5,557,952		4,500,000
		Common stock and pre-funded stock warrants	44,392,333		31,640,484
	Options to purchase common stock		6,770,660		6,057,011
	Series 1 and 2 warrants		689,242		4,595,039
		Total common stock and common stock equivalents	51,852,235		42,292,534

 

SYNDAX PHARMACEUTICALS, INC.
(unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
			Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except share and per share data)			2020		2019		2020		2019
License fee revenue			$                379		$               379		$               1,138		$               1,138
Operating expenses:
	Research and development		14,408		9,923		34,913		33,492
	General and administrative		5,824		3,605		17,787		10,980
Total operating expenses			20,232		13,528		52,700		44,472
Loss from operations			(19,853)		(13,149)		(51,562)		(43,334)
Other (expense) income, net			(584)		320		(1,173)		1,287
Net loss			$          (20,437)		$         (12,829)		$           (52,735)		$           (42,047)
Net loss attributable to common stockholders			$          (20,437)		$         (12,829)		$           (56,641)		$           (42,047)
Net loss per share attributable to common
	stockholders--basic and diluted		$              (0.46)		$             (0.41)		$               (1.43)		$               (1.40)
Weighted-average number of common stock
	used to compute net loss per share attributable
	to common stockholders--basic and diluted		44,156,808		31,630,639		39,714,490		30,103,338

Syndax Contacts

Investor Contact
Melissa Forst
Argot Partners
melissa@argotpartners.com
Tel 212.600.1902

Media Contact
Ted Held
ted.held@gcihealth.com 
Tel 212.798.9842

SNDX-G

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SOURCE Syndax Pharmaceuticals, Inc.

FAQ

What are the latest updates on Syndax Pharmaceuticals' SNDX-5613 trial?

Syndax Pharmaceuticals reported promising initial data from the Phase 1 AUGMENT-101 trial of SNDX-5613, which focuses on genetically defined acute leukemias.

When will Syndax initiate the pivotal trial for axatilimab?

Syndax plans to initiate a pivotal Phase 2 trial for axatilimab by the end of 2020, targeting chronic graft versus host disease (cGVHD).

What was Syndax's net loss for Q3 2020?

Syndax reported a net loss of $20.4 million or $0.46 per share for the third quarter of 2020.

What is Syndax's financial guidance for Q4 2020?

For Q4 2020, Syndax expects research and development expenses to range from $15 to $20 million and total operating expenses to be between $20 and $25 million.

What are Syndax's cash reserves as of September 30, 2020?

As of September 30, 2020, Syndax had cash, cash equivalents, and short-term investments of $170.2 million.