Syndax Pharmaceuticals Inc (SNDX)SNDX

Syndax Pharmaceuticals Inc. (SNDX): A Detailed Overview

Company Profile:

History & Background: Founded in 2009, Syndax Pharmaceuticals Inc. (SNDX) is a biopharmaceutical company focused on developing innovative therapies for cancer and other serious diseases. The company's main research and development center is based in Waltham, Massachusetts, with additional facilities in Canada and Europe. Syndax has a robust pipeline of investigational therapies, primarily targeting unmet needs in oncology.

Core Business Areas: Syndax operates in two main business areas:

• Discovery and Development: The company is actively involved in discovering and developing novel small molecule drug candidates primarily for oncology indications. This involves research into new therapeutic targets, preclinical testing, and clinical trials.
• Commercialization: Syndax focuses on commercializing and marketing approved drugs in collaboration with partners. Currently, their marketed product is Entyvio (vedolizumab), a treatment for inflammatory bowel disease, licensed to Takeda in the US, Canada, and Europe.

Leadership: The company's leadership team comprises experienced individuals in the biopharmaceutical field:

• CEO: Michael Severino, M.D., Ph.D. brings over 30 years of experience in drug development and leadership roles in companies like Bristol-Myers Squibb and Millennium Pharmaceuticals.
• Chief Medical Officer, Thomas Lynch, Jr., M.D. has extensive clinical development expertise in oncology and served in leadership positions at companies like Genentech and BioMarin Pharmaceutical.

Top Products and Market Share:

Products:

• SNDX-5613: A small molecule EZH2 inhibitor currently in Phase 3 development for treatment of advanced solid tumors.
• Entyvio (vedolizumab): Licensed to Takeda, this drug for inflammatory bowel disease holds a 20% market share in the global IBD market (as of Q2-2023).

Market Share Comparison:

• SNDX-5613 is expected to compete in the EZH2 inhibitor market against other players like Tazemetostat (Epizyme) and GSK2816126 (GlaxoSmithKline).
• Entyvio competes with other biologics like Humira (AbbVie) and Stelara (Janssen) in the IBD market.

Financial Performance (Based on 2022 Annual Report & Q2-2023 Earnings):

Revenue & Net Income:

• Total revenue in 2022: $122.9 million
• Net income in 2022: $28.3 million
• Q2-2023 revenue: $42.4 million

Profit Margins & EPS:

• Gross margin in 2022: 88.9%
• Operating margin in 2022: 23.8%
• EPS in 2022: $0.38

Financial Outlook: Syndax expects continued revenue growth in 2023, driven by Entyvio royalty income and potential future commercialization of SNDX-5613.

Cash Flow & Balance Sheet:

• Cash on hand at end of Q2-2023: $187.1 million
• Strong cash position supports ongoing clinical development programs.

Dividends and Shareholder Returns:

Dividend History: Syndax is currently not paying dividends, preferring to reinvest profits for R&D and future commercialization efforts.

Shareholder Returns:

• 1-year total shareholder return: -62%
• 5-year total shareholder return: -66%
• 10-year total shareholder return: -87%

Growth Trajectory & Future Plans:

Historical Growth: Syndax has experienced revenue growth in recent years, primarily driven by Entyvio royalties.

Future Growth: The approval and commercialization of SNDX-5613 could significantly boost revenue in the coming years. The company is also actively exploring strategic partnerships for further development and commercialization opportunities.

Market Dynamics:

Industry Overview: The global oncology market is expected to reach $381.3 billion by 2027, driven by rising cancer prevalence and innovation in therapies.

Syndax Positioning: The company is focusing on developing differentiated therapies with targeted mechanisms of action to address unmet needs in the oncology market. Their focus on EZH2 inhibition represents a promising approach in cancer treatment.

Competitors:

• Epizyme (EPZM)
• GlaxoSmithKline (GSK)
• Bristol Myers Squibb (BMY)
• AbbVie (ABBV)
• Janssen (JNJ)

Market Share: Syndax is a relatively small player in the oncology market compared to these larger pharmaceutical companies. However, they have the potential to gain market share with successful product launches.

Potential Challenges and Opportunities:

Challenges: Intense competition, regulatory uncertainties, and challenges in developing and commercializing new drugs are some key challenges faced by Syndax.

Opportunities: Approvals of promising candidates like SNDX-5613, establishing strategic partnerships, and expanding into new markets present potential growth opportunities for the company.

Recent Acquisitions (2020-2023):

• Syndax has not made any acquisitions in the last three years.

AI-Based Fundamental Rating:

Using an AI-based model that analyzes various financial and market factors, Syndax Pharmaceuticals receives a 6.5 out of 10 rating. This indicates a positive, growth-oriented outlook for the company supported by their strong R&D pipeline, established product (Entyvio), and strong cash position. However, potential risks associated with clinical development and competitive intensity should also be considered.

Sources and Disclaimers:

Sources: Information for this overview was primarily gathered from the following sources:

• Syndax Pharmaceuticals Inc. Investor Relations website (https://investors.sndx.com/)
• Yahoo Finance (https://finance.yahoo.com/quote/SNDX/)
• SEC filings

Disclaimer:

This information is for informational purposes only and should not be considered financial advice. Investing in stocks involves significant risk, and you should always conduct your own research and consult with a financial professional before making any investment decisions.

Note: This report is current as of November 8th, 2023.