Buy Rating Reaffirmed for Syndax Pharmaceuticals Despite Black Box Warning on Revuforj

Bank of America Securities analyst Jason Zemansky reiterated a Buy rating on Syndax Pharmaceuticals on October 24 and set a price target of $27.00.

Jason Zemansky has given his Buy rating due to a combination of factors that highlight the potential of Syndax Pharmaceuticals, particularly in the context of their drug Revuforj. Despite the recent FDA approval of Revuforj for R/R NPM1m AML being accompanied by a Black Box warning for QTc prolongation, Zemansky believes the market’s negative reaction is excessive. The side effect is well-known and has not previously deterred prescriptions, and the high unmet need in the R/R setting suggests that prescribing decisions will remain unaffected.
Moreover, Zemansky points out that Syndax’s commercial infrastructure and strong patient assistance program provide a competitive edge, especially as rival Kura’s ziftomenib has not shown significantly superior efficacy. The rest of Revuforj’s label aligns with expectations, and with limited treatment alternatives, Zemansky anticipates no significant impact on uptake. Consequently, the probability of success for approval has been increased, leading to an updated price objective of $27, reinforcing the Buy rating.

In another report released today, H.C. Wainwright also reiterated a Buy rating on the stock with a $40.00 price target.