Syros Reports Third Quarter 2024 Financial Results and Provides a Business Update

Rhea-AI Summary

Syros Pharmaceuticals reported Q3 2024 financial results, highlighting zero revenue compared to $3.8M in Q3 2023 due to Pfizer collaboration termination. R&D expenses decreased to $20.5M from $28.3M, while G&A expenses reduced to $5.7M from $7.8M. The company reported a net loss of $6.4M ($0.16 per share) versus $40.1M ($1.43 per share) in Q3 2023. Cash position stands at $58.3M, expected to fund operations into Q3 2025. Pivotal Complete Response data from SELECT-MDS-1 Phase 3 trial for tamibarotene in HR-MDS patients is expected mid-November 2024.

Positive

• Significant reduction in net loss to $6.4M from $40.1M year-over-year
• Decreased R&D expenses by 27.6% to $20.5M
• Reduced G&A expenses by 26.9% to $5.7M
• Potential market opportunity with 9,000 newly diagnosed HR-MDS patients annually in U.S.

Negative

• Revenue dropped to $0 from $3.8M in Q3 2023
• Cash position decreased to $58.3M from $79.0M in previous quarter
• Termination of Pfizer collaboration agreement
• cash runway only into Q3 2025

Insights

Financial Analyst

The Q3 2024 results reveal significant financial headwinds with $0 revenue compared to $3.8M in Q3 2023, primarily due to the Pfizer collaboration termination. Despite reduced operating expenses - R&D down to $20.5M from $28.3M and G&A down to $5.7M from $7.8M - the cash runway extending only into Q3 2025 raises concerns about future financing needs.

The upcoming pivotal CR data from SELECT-MDS-1 Phase 3 trial in mid-November represents a critical inflection point. With $58.3M in cash, down from $79M in Q2, successful trial results could strengthen the company's position for potential partnerships or financing. The addressable market of 9,000 annual HR-MDS patients in the U.S., with 50% RARA overexpression, presents a significant commercial opportunity if approved.

Medical Research Analyst

The SELECT-MDS-1 Phase 3 trial results for tamibarotene in HR-MDS patients represent a important development in a therapeutic area that has seen innovation. The focus on RARA gene overexpression demonstrates a precision medicine approach in a field where no new treatments beyond HMAs have been approved in over a decade.

The targeted population of RARA-overexpressing HR-MDS patients represents a well-defined market segment with clear unmet needs. The biomarker-driven strategy could potentially improve treatment outcomes compared to current standards. However, the success hinges entirely on the upcoming complete response data, making this a binary event for the company's near-term prospects.

-- Pivotal Complete Response (CR) Data from SELECT-MDS-1 Phase 3 Trial Expected in Mid-November --

-- Management to Host Conference Call at 8:30 AM ET Today --

CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Syros Pharmaceuticals (NASDAQ: SYRS), a biopharmaceutical company committed to advancing new standards of care for the frontline treatment of hematologic malignancies, today reported financial results for the quarter ended September 30, 2024 and provided a business update.

“It is a very exciting time at Syros, as we approach a significant milestone in our efforts to establish tamibarotene as a potential new standard of care for higher-risk myelodysplastic syndrome (HR-MDS) patients with RARA gene overexpression. We expect to announce topline results from the pivotal SELECT-MDS-1 Phase 3 trial in mid-November, and if successful, we plan to file our first New Drug Application (NDA) and to launch tamibarotene in the U.S.,” said Conley Chee, Chief Executive Officer of Syros.

“We believe there is a tremendous opportunity for tamibarotene in the HR-MDS frontline setting. With approximately 9,000 newly diagnosed HR-MDS patients annually in the U.S. – approximately 50% of whom overexpress RARA – tamibarotene is uniquely positioned to address the unmet need, as no new therapies beyond hypomethylating agents (HMAs) have been approved in over a decade. Leveraging our own commercial capabilities and experienced leadership team, we are well-equipped to bring tamibarotene to patients,” Mr. Chee continued.

UPCOMING MILESTONES

• Report pivotal CR data from the SELECT-MDS-1 Phase 3 trial in newly diagnosed HR-MDS patients with RARA gene overexpression in mid-November 2024.

Third Quarter 2024 Financial Results

• Syros did not recognize revenue in the third quarter of 2024, as compared to $3.8 million for the third quarter of 2023. The decrease reflects the termination of Syros’ collaboration agreement with Pfizer.
• Research and development (R&D) expenses were $20.5 million for the third quarter of 2024, as compared to $28.3 million for the third quarter of 2023. The decrease was primarily due to the reduction in external R&D consulting, contract manufacturing, and a reduction in headcount and related expenses.
• General and administrative (G&A) expenses were $5.7 million for the third quarter of 2024, as compared to $7.8 million for the third quarter of 2023. The decrease was primarily due to a reduction in headcount and related expenses, consulting fees, and facilities expenses.
• For the third quarter of 2024, Syros reported a net loss of $6.4 million, or $0.16 per share, compared to a net loss of $40.1 million, or $1.43 per share, for the same period in 2023.

Cash and Financial Guidance

Cash and cash equivalents as of September 30, 2024, were $58.3 million, as compared with $79.0 million as of June 30, 2024.

Based on its current plans, Syros believes that its existing cash and cash equivalents will be sufficient to fund its anticipated operating expenses and capital expenditure requirements into the third quarter of 2025.

Conference Call and Webcast

Syros will host a conference call today at 8:30 a.m. ET to discuss the third quarter 2024 financial results and provide a corporate update.

To access the live conference call, please dial (800) 549-8228 (domestic) or (289) 819-1520 (international) and refer to conference ID 07454. A webcast of the call will also be available on the Investors & Media section of the Syros website at www.syros.com. An archived replay of the webcast will be available for approximately 30 days following the presentation.

About Syros Pharmaceuticals

Syros is committed to developing new standards of care for the frontline treatment of patients with hematologic malignancies. Driven by the motivation to help patients with blood disorders that have largely eluded other targeted approaches, Syros is developing tamibarotene, an oral selective RARα agonist in frontline patients with higher-risk myelodysplastic syndrome with RARA gene overexpression. For more information, visit www.syros.com and follow us on X (@SyrosPharma) and LinkedIn.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including without limitation statements regarding Syros’ clinical development plans, the progression of the SELECT-MDS-1 trial, the timing to report clinical data, the ability to commercialize tamibarotene and deliver benefit to patients, the market opportunity for tamibarotene, and the sufficiency of Syros’ capital resources to fund its operating expenses and capital expenditure requirements into the third quarter of 2025. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “hope,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “target,” “should,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various important factors, including Syros’ ability to: advance the development of its programs under the timelines it projects in current and future clinical trials; demonstrate in any current and future clinical trials the requisite safety, efficacy and combinability of its drug candidates; sustain the response rates and durability of response seen to date with its drug candidates; successfully develop a diagnostic test to identify patients with the RARA biomarker; obtain and maintain patent protection for its drug candidates and the freedom to operate under third party intellectual property; obtain and maintain necessary regulatory approvals; identify, enter into and maintain collaboration agreements with third parties; manage competition; manage expenses; raise the substantial additional capital needed to achieve its business objectives; attract and retain qualified personnel; and successfully execute on its business strategies; risks described under the caption “Risk Factors” in Syros’ Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, each of which is on file with the Securities and Exchange Commission; and risks described in other filings that Syros makes with the Securities and Exchange Commission in the future.

Financial Tables

Syros Pharmaceuticals, Inc.
Selected Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)
	September 30, 2024					December 31, 2023
Cash and cash equivalents	$	58,275				$	139,526
Working capital1		35,539					108,299
Total assets		84,995					168,174
Total stockholders’ (deficit) equity		(11,123)					16,662

			(1)		The Company defines working capital as current assets less current liabilities. See the Company’s condensed consolidated financial statements for further details regarding its current assets and current liabilities.

Syros Pharmaceuticals, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except share and per share data)
(unaudited)
		Three Months Ended							Nine Months Ended
		September 30,							September 30,
		2024			2023				2024				2023
Revenue		$	—		$	3,762			$	—			$	9,550
Operating expenses:
Research and development			20,527			28,280				67,134				86,650
General and administrative			5,655			7,764				17,383				22,394
Restructuring			—			2,354				—				2,354
Total operating expenses			26,182			38,398				84,517				111,398
Loss from operations			(26,182	)		(34,636	)			(84,517	)			(101,848	)
Interest income			793			1,633				3,424				5,533
Interest expense			(1,312	)		(1,303	)			(4,001	)			(3,798	)
Change in fair value of warrant liabilities			20,305			(5,837	)			51,663				(77	)
Net loss applicable to common stockholders		$	(6,396	)	$	(40,143	)		$	(33,431	)		$	(100,190	)
Net loss per share applicable to common stockholders - basic and diluted		$	(0.16	)	$	(1.43	)		$	(0.85	)		$	(3.59	)
Weighted-average number of common shares used in net loss per share applicable to common stockholders - basic and diluted			39,335,772			27,990,558				39,194,933				27,915,951

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241031698831/en/

Syros Contact

Karen Hunady

Director of Corporate Communications & Investor Relations

1-857-327-7321

khunady@syros.com

Investor Relations

Amanda Isacoff

Precision AQ

1-212-362-1200

amanda.isacoff@precisionaq.com

Source: Syros Pharmaceuticals

FAQ

What were Syros Pharmaceuticals (SYRS) Q3 2024 earnings per share?

Syros reported a net loss of $0.16 per share in Q3 2024, compared to a net loss of $1.43 per share in Q3 2023.

When will Syros (SYRS) announce SELECT-MDS-1 Phase 3 trial results?

Syros expects to announce the pivotal Complete Response data from the SELECT-MDS-1 Phase 3 trial in mid-November 2024.

What is Syros Pharmaceuticals (SYRS) current cash position as of Q3 2024?

Syros reported cash and cash equivalents of $58.3 million as of September 30, 2024.

How long will Syros (SYRS) current cash reserves last?

Based on current plans, Syros believes its existing cash will fund operations into the third quarter of 2025.