Syndax Pharmaceuticals is at a pivotal point, transitioning from a clinical-stage company to a commercial entity. The FDA approval of Niktimvo (anti-CSF1R) for chronic Graft versus Host Disease (cGVHD) on August 14, 2024, marks a significant achievement. The company anticipates launching Niktimvo commercially in late 2024 or early 2025, pending finalization of new vial sizes.
Revumenib's Potential in AML Treatment
Syndax's revumenib, a menin inhibitor for KMT2A-rearranged acute myeloid leukemia (AML), has a Prescription Drug User Fee Act (PDUFA) date set for December 26, 2024. While the extension of the PDUFA date from September 26, 2024, caused a temporary stock dip, such extensions are common and don't necessarily indicate issues with the drug's efficacy or safety.
Financial Outlook and Market Response
Despite not yet being profitable, Syndax maintains a strong cash position, with sufficient runway through 2026 to support product launches and R&D. Analysts estimate EPS for the next two fiscal years at -$4.29 and -$3.68, respectively. The market has responded positively to Syndax's developments, with the stock trading at $18.75 as of October 28, 2024. Analysts have set price targets as high as $33.00, reflecting optimism about the company's future.
Niktimvo in cGVHD Market
Syndax is entering the cGVHD market at a favorable time, evidenced by the strong performance of Sanofi's Rezurock, which has shown 15% quarter-over-quarter growth. This suggests a robust market for cGVHD treatments, potentially benefiting Niktimvo's commercial prospects.
Revumenib's Expansion Potential
Syndax is exploring revumenib's potential in colorectal cancer (CRC), with Phase 1 proof-of-concept data expected in the second quarter of 2024. This could open new market opportunities for the drug. Revumenib is also positioned to address a significant unmet need in AML patients with KMT2A rearrangements.
Analyst Outlook
Analysts maintain a positive outlook on Syndax, with most rating the stock as "Overweight" or equivalent. The consensus price target of $33.00 represents substantial upside potential, reflecting confidence in the company's growth trajectory.
