Syndax Pharmaceuticals, Inc. (SNDX): history, ownership, mission, how it works & makes money

A Brief History of Syndax Pharmaceuticals, Inc.

Company Overview

Syndax Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing novel therapies for cancer and other serious diseases. The company is headquartered in Waltham, Massachusetts and trades on NASDAQ under the ticker symbol SNDX.

Recent Developments

As of September 30, 2024, Syndax reported a net loss of $84.1 million for the third quarter, compared to a net loss of $51.1 million for the same period in 2023. The total revenue for the third quarter of 2024 stood at $12.5 million, primarily from milestone and license revenue related to the approval of Niktimvo.

Financial Performance

For the nine months ended September 30, 2024, Syndax recorded total revenues of $16 million, with operating expenses amounting to $259.3 million, compared to $152 million for the same period in 2023. The increase in operating expenses reflects higher research and development costs, which reached $176.1 million in 2024, up from $107.9 million in 2023.

Stockholder Equity

As of September 30, 2024, Syndax reported total stockholders' equity of $366.4 million, down from $554.2 million at the end of 2023. This decline is attributed to the accumulated deficit of $1.1 billion.

Cash Flow Analysis

For the nine months ended September 30, 2024, Syndax experienced net cash used in operating activities of $217.5 million, compared to $119.3 million in the prior year. The cash provided by investing activities amounted to $49.2 million.

Future Outlook

Syndax anticipates continued significant R&D expenditures as it advances clinical trials for its lead candidates, including Niktimvo and revumenib. The company has several collaboration agreements that may provide additional funding through milestone and royalty payments.

A Who Owns Syndax Pharmaceuticals, Inc. (SNDX)

Major Shareholders

As of September 30, 2024, Syndax Pharmaceuticals, Inc. (SNDX) had a total of 85,285,488 shares of common stock outstanding. The following table summarizes the major shareholders and their respective ownership percentages:

Institutional Ownership

Institutional investors held approximately 56% of the total shares as of September 30, 2024. Key institutional investors include:

• BlackRock, Inc. - 8.44%
• Vanguard Group, Inc. - 7.99%
• FMR LLC (Fidelity) - 6.45%
• Incyte Corporation - 9.96%
• Other Institutional Investors - 23.45%

Insider Ownership

Insider ownership accounted for approximately 2.94% of total shares outstanding. Key insiders include:

• Michael E. McGarry - CEO
• Richard A. Heyman - President
• Other executives and board members

Recent Financial Performance

For the nine months ended September 30, 2024, Syndax Pharmaceuticals reported a net loss of $224.6 million, with total revenues of $16 million primarily due to milestone revenues from product approvals. As of September 30, 2024, the company had an accumulated deficit of approximately $1.1 billion.

The company's stock performance has been volatile, reflecting broader market trends and specific company developments, including the FDA approval of its drug Niktimvo, which led to a $12.5 million revenue milestone recognized in September 2024.

Market Capitalization

As of September 30, 2024, Syndax Pharmaceuticals had a market capitalization of approximately $800 million, based on a share price of $9.37.

Future Considerations

Syndax is expected to continue requiring additional capital to fund its operations. The company plans to raise funds through both equity and debt financing, which may dilute existing shareholder interests. The ongoing development of its product pipeline, particularly the commercialization of Niktimvo, will be critical for future revenue generation.

Syndax Pharmaceuticals, Inc. (SNDX) Mission Statement

Corporate Mission

Syndax Pharmaceuticals, Inc. is committed to transforming the lives of patients with cancer and other serious diseases through innovative medicines. The company focuses on the development of novel therapies that target fundamental mechanisms of disease, particularly in oncology and immunology. As of 2024, Syndax aims to leverage its scientific expertise and collaborative partnerships to bring effective treatments to market while ensuring sustainable growth and shareholder value.

Core Values

• Innovation: Pioneering new approaches to drug development.
• Collaboration: Building strong partnerships with industry leaders.
• Integrity: Upholding the highest ethical standards in all operations.
• Patient-Centricity: Prioritizing the needs and well-being of patients.

Strategic Objectives

The strategic objectives of Syndax Pharmaceuticals include:

• Advancing clinical trials for current drug candidates.
• Expanding the therapeutic pipeline through strategic acquisitions and partnerships.
• Achieving regulatory approvals for lead product candidates.
• Enhancing operational efficiency and financial performance.

Financial Overview

As of September 30, 2024, Syndax Pharmaceuticals reported the following financial data:

Recent Developments

In August 2024, Syndax received FDA approval for its product Niktimvo for the treatment of chronic graft versus host disease (cGVHD), which marked a significant milestone for the company. The anticipated launch of Niktimvo in the U.S. is expected no later than early Q1 2025. This approval is projected to enhance the company's revenue stream and strengthen its market position.

Market Position and Future Outlook

Syndax Pharmaceuticals is strategically positioned in the oncology market, focusing on innovative therapies that address unmet medical needs. The company’s commitment to research and development is expected to drive future growth and profitability. With a robust pipeline and recent product approvals, Syndax aims to enhance shareholder value while maintaining its dedication to patient care.

How Syndax Pharmaceuticals, Inc. (SNDX) Works

Company Overview

Syndax Pharmaceuticals, Inc. (SNDX) focuses on developing innovative therapeutics for cancer and other serious diseases. The company's lead product candidate, Niktimvo, was approved by the FDA for chronic graft versus host disease (cGVHD) on August 14, 2024.

Financial Performance

As of September 30, 2024, Syndax reported a net loss of $224.6 million for the nine months ended, compared to $136.9 million for the same period in 2023. The net loss per share attributable to common stockholders was $2.63 for the nine months ended September 30, 2024, compared to $1.97 for the same period in 2023.

Research and Development

Syndax's R&D expenses increased significantly, driven primarily by costs associated with revumenib and axatilimab. For the three months ended September 30, 2024, revumenib-related costs totaled $24.5 million, while axatilimab-related costs were $24.2 million.

Commercialization Efforts

Syndax is co-promoting Niktimvo with Incyte in the U.S. Following its approval, the company is preparing for the product launch anticipated in early 2025. An $8 million milestone was paid to Vitae Pharmaceuticals in 2024 for the completion of pivotal trials related to revumenib.

Cash and Investments

As of September 30, 2024, Syndax had cash, cash equivalents, and short- and long-term investments totaling $399.6 million. This includes:

Market Position and Future Outlook

Syndax continues to focus on strategic partnerships and licensing agreements to enhance its pipeline. The company is eligible for future milestone payments under its collaboration agreements, which may significantly impact its financial position in the coming years.

How Syndax Pharmaceuticals, Inc. (SNDX) Makes Money

Revenue Streams

Syndax Pharmaceuticals primarily generates revenue through milestone payments and licensing agreements. As of September 30, 2024, the company recognized:

• Milestone revenue of $12.5 million for the approval of its product Niktimvo.
• Additionally, it earned $3.5 million under a license agreement with Eddingpharm, related to the marketing approval of entinostat in China, recognized in the second quarter of 2024.

Product Development and Commercialization

Syndax's flagship product, Niktimvo, received FDA approval on August 14, 2024, for treating chronic graft versus host disease (cGVHD). The company is co-promoting this product with Incyte in the U.S. and anticipates launching it no later than early Q1 2025. The commercial success of Niktimvo is critical for future revenue generation, as the company has not yet generated product sales revenue as of September 30, 2024.

Research and Development Expenses

Research and development (R&D) expenses are a significant component of Syndax's financial landscape, reflecting its focus on advancing its product candidates. For the three months ended September 30, 2024, R&D expenses totaled $70.971 million, a substantial increase from $39.087 million in the same period in 2023. This increase is primarily attributed to:

• Costs related to Revumenib trials, totaling $24.454 million in Q3 2024.
• Axatilimab-related costs amounting to $24.204 million in Q3 2024.
• Personnel costs and other expenses, which reached $15.807 million.

Operating Expenses

For the nine months ended September 30, 2024, Syndax reported total operating expenses of $259.307 million, which includes:

• R&D expenses of $176.118 million.
• Selling, general and administrative (SG&A) expenses totaling $83.189 million.

Net Loss

Syndax reported a net loss of $224.589 million for the nine months ended September 30, 2024, compared to a net loss of $136.887 million for the same period in 2023. The increase in net loss is largely due to higher operating expenses associated with R&D activities and administrative costs.

Financial Position

As of September 30, 2024, Syndax had cash, cash equivalents, and short- and long-term investments totaling $399.6 million. The company continues to rely on financing through equity offerings and collaboration agreements to fund its operations and product development efforts.

Updated on 16 Nov 2024

Resources:

1. Syndax Pharmaceuticals, Inc. (SNDX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Syndax Pharmaceuticals, Inc. (SNDX)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Syndax Pharmaceuticals, Inc. (SNDX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.