Syndax Pharmaceuticals (SNDX) AI Stock Analysis

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Syndax Pharmaceuticals

(NASDAQ:SNDX)

44Neutral

Syndax Pharmaceuticals faces substantial challenges with declining financial performance and a bearish technical outlook, compounded by a negative valuation metric. However, the recent positive developments from the earnings call, including product launches and partnerships, provide some optimism for future growth if they can overcome market penetration challenges.

Positive Factors

Financial Performance

Syndax reported solid 4Q results, which added further conviction to the story heading into a pivotal year.

Product Adoption

Surveyed physicians and KOL panelist anticipate rapid and broad uptake of Revuforj for relapsed or refractory acute leukemia.

Regulatory Approval

Revuforj received FDA approval for the treatment of adult and pediatric patients with relapsed or refractory acute leukemia with a KMT2A translocation.

Negative Factors

Financial Guidance

R&D and SG&A expense guidance for 2025 is below pre-earnings consensus, indicating potential cost efficiency challenges.

Market Penetration

The strategy to expand into 1L disease may face challenges despite being favorably received, as it involves moving into earlier line settings.

Syndax Pharmaceuticals (SNDX) vs. S&P 500 (SPY)

Market Cap

$960.25M

Dividend YieldN/A

Average Volume (3M)2.02M

Price to Earnings (P/E)―

Beta (1Y)1.79

Revenue GrowthN/A

EPS Growth-25.83%

CountryUS

Employees270

SectorHealthcare

Sector Strength69

IndustryBiotechnology

Share Statistics

EPS (TTM)-3.73

Shares Outstanding86,044,030

10 Day Avg. Volume2,496,373

30 Day Avg. Volume2,020,716

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)49.81

Price to Cash Flow (P/CF)-5.10

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$34.20

Price Target Upside206.45% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering12

Syndax Pharmaceuticals Business Overview & Revenue Model

Company DescriptionSyndax Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for cancer treatment. The company operates primarily in the biotechnology sector, with a commitment to discovering, developing, and delivering novel therapies that address unmet needs in oncology. Its core products include a pipeline of drug candidates designed to enhance the effectiveness of existing cancer treatments and improve patient outcomes.

How the Company Makes MoneySyndax Pharmaceuticals makes money through the development and commercialization of its drug candidates, primarily focusing on oncology treatments. The company's revenue model is centered around advancing its pipeline products through clinical trials, gaining regulatory approval, and eventually marketing these therapies to healthcare providers and patients. Revenue is generated from product sales, potential licensing agreements, and strategic partnerships with other pharmaceutical companies. These partnerships often provide upfront payments, milestone payments, and royalties as the products progress through development and reach the market. Significant factors contributing to its earnings include successful clinical trial results, regulatory approvals, and effective commercialization strategies.

Syndax Pharmaceuticals Financial Statement Overview

Summary

Syndax Pharmaceuticals is facing significant financial challenges with declining revenues and persistent net losses. The negative cash flows further highlight operational inefficiencies. However, the balance sheet remains relatively strong with low leverage, which is a positive aspect in an otherwise challenging financial scenario.

Income Statement

Negative

Syndax Pharmaceuticals has faced declining revenue, with a significant drop from $139.7 million in 2021 to $23.68 million in 2024. Margins are under pressure, with a consistent negative net profit margin due to high operating losses. The company's gross profit margin remains high at 96.52% in 2024, indicating efficient cost management. However, the sustained net losses and negative EBIT margins highlight profitability challenges.

Balance Sheet

Neutral

The balance sheet shows a strong equity base with stockholders' equity at $288 million in 2024, though it has decreased from $554 million in 2023. The equity ratio is robust at 39.75%. Debt levels are low with a debt-to-equity ratio of 0.04, indicating low financial leverage. The decline in equity and assets suggests potential risks if losses continue.

Cash Flow

Negative

Operating cash flow is negative, showing significant cash outflow from operations in 2024 at -$274.9 million. Free cash flow has also deteriorated, reflecting a challenging cash flow situation. The company's ability to generate cash is compromised, with a negative operating cash flow to net income ratio, raising concerns on sustainability without external financing.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
23.68M	0.00	0.00	139.71M	1.52M
	Gross Profit
22.85M	-12.00K	-454.00K	139.25M	1.52M
	EBIT
-339.67M	-229.95M	-151.76M	26.22M	-71.42M
	EBITDA
-313.82M	-229.94M	-151.76M	27.28M	-70.29M
	Net Income Common Stockholders
-318.76M	-209.36M	-143.75M	24.93M	-73.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
572.88M	577.58M	481.27M	439.94M	293.06M
	Total Assets
724.82M	612.88M	497.24M	449.66M	300.61M
	Total Debt
12.12M	1.64M	1.16M	20.97M	20.54M
	Net Debt
-141.97M	-293.76M	-73.19M	-201.00M	-94.71M
	Total Liabilities
436.69M	58.68M	29.79M	41.29M	48.42M
	Stockholders Equity
288.12M	554.20M	467.45M	408.37M	252.19M
Cash Flow		Free Cash Flow
-274.90M	-160.60M	-133.90M	29.00M	-71.26M
	Operating Cash Flow
-274.90M	-160.60M	-133.68M	29.13M	-71.26M
	Investing Cash Flow
-219.78M	117.61M	-186.19M	-40.87M	-142.53M
	Financing Cash Flow
353.37M	264.13M	172.25M	118.46M	304.42M

Syndax Pharmaceuticals Technical Analysis

Technical Analysis Sentiment

Negative

Last Price11.16

Price Trends

50DMA

13.78

Negative

100DMA

14.12

Negative

200DMA

17.14

Negative

Market Momentum

MACD

-0.45

Positive

RSI

35.23

Neutral

STOCH

20.93

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDX, the sentiment is Negative. The current price of 11.16 is below the 20-day moving average (MA) of 12.47, below the 50-day MA of 13.78, and below the 200-day MA of 17.14, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 35.23 is Neutral, neither overbought nor oversold. The STOCH value of 20.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNDX.

Syndax Pharmaceuticals Risk Analysis

Syndax Pharmaceuticals disclosed 53 risk factors in its most recent earnings report. Syndax Pharmaceuticals reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Syndax Pharmaceuticals Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIR	51 Neutral	$758.40M	―	-38.09%	―	-13.90%	16.56%
EVH	50 Neutral	$1.17B	―	-5.96%	―	30.09%	36.14%
IOVA	48 Neutral	$1.08B	―	-57.48%	―	13698.99%	31.46%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
SNDX	44 Neutral	$960.25M	―	-75.69%	―	―	-25.83%
VRDN	38 Underperform	$979.45M	―	-45.77%	―	-3.82%	29.10%
GPCR	35 Underperform	$910.86M	―	-18.61%	―	―	7.57%

* Healthcare Sector Average

Performance Comparison

SNDX

Syndax Pharmaceuticals

11.16

-10.46

-48.38%

IOVA

Iovance Biotherapeutics

3.30

-8.59

-72.25%

VRDN

Viridian Therapeutics

12.02

-3.62

-23.15%

EVH

Evolent Health

10.03

-20.27

-66.90%

VIR

Vir Biotechnology

5.53

-3.04

-35.47%

GPCR

Structure Therapeutics, Inc. Sponsored ADR

15.90

-21.75

-57.77%

Syndax Pharmaceuticals Earnings Call Summary

Earnings Call Date: Mar 3, 2025 | % Change Since: -28.64% | Next Earnings Date: May 12, 2025

Earnings Call Sentiment Positive

Syndax has achieved significant milestones with the approval and commercial launch of two first-in-class medicines, generating initial revenues and securing a strong financial position. However, challenges remain in achieving full market penetration and managing competition. The overall sentiment reflects a positive outlook with some areas needing attention.

Highlights

FDA Approval of Two First-in-Class Medicines

In 2024, Syndax received FDA approval for Revuforj, a menin inhibitor for relapsed/refractory acute leukemia, and Niktimvo for chronic Graft versus Host Disease, marking the company's entry into product revenue with $7.7 million from Revuforj in the initial five weeks of launch.

Strong Financial Position and Partnerships

Syndax strengthened its balance sheet with $350 million from a deal with Royalty Pharma, positioning the company to fund operations through profitability. The company also launched Niktimvo in partnership with Incyte.

Positive Clinical Data for Revuforj

Clinical trials showed Revuforj's effectiveness in treating acute leukemias, with potential for label expansion to include mutant NPM1 AML, representing a $2 billion market opportunity.

Encouraging Commercial Launch of Revuforj

Revuforj generated $7.7 million in net revenue in a partial quarter, with strong early patient demand and positive feedback on product profile and accessibility.

Niktimvo Potential Market Opportunity

Niktimvo targets a $1.5 billion to $2 billion market for third-line or later chronic GVHD treatment in the US, with potential for further expansion into earlier lines of treatment and other diseases.

Lowlights

Limited Inventory Visibility

Syndax has limited visibility at the patient level for inventory tracking, which could impact accurate forecasting and reporting of patient counts.

Challenges in Full Market Penetration

Only 33% of Tier 1 and Tier 2 accounts have ordered Revuforj, indicating room for growth but also challenges in achieving full market penetration.

Patent and Competition Concerns

The company faces potential competition in the menin inhibitor space, with the necessity to maintain first-mover advantage and patient loyalty.

Company Guidance

During the Syndax Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided comprehensive guidance for the upcoming year. They reported a remarkable start with $7.7 million in net revenue from Revuforj's initial five-week launch, reflecting strong patient demand and efficient market access. The company aims to file a supplemental new drug application for Revuforj in relapsed or refractory mutant NPM1 AML by the second quarter, targeting a $2 billion market opportunity. Additionally, Syndax launched Niktimvo in partnership with Incyte for chronic GVHD, estimating a $1.5 to $2 billion addressable market. Financially, Syndax strengthened its position with a $350 million upfront payment from Royalty Pharma, maintaining $692.4 million in cash and investments. For 2025, the company projects R&D expenses of $260 to $280 million and combined R&D plus SG&A expenses of $415 to $435 million, with an expectation to reach profitability.

Syndax Pharmaceuticals Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Syndax Pharmaceuticals Restructures Leadership Team

Neutral

Dec 20, 2024

Syndax Pharmaceuticals has announced the elimination of the Chief Medical Officer position, resulting in Catherine Madigan, M.D. departing from the company. This organizational change may impact Syndax’s operational dynamics, signaling potential shifts in their strategic focus or cost management efforts.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.