Syros Pharmaceuticals, Inc. (SYRS): Business Model Canvas [10-2024 Updated]

In the dynamic landscape of biopharmaceuticals, Syros Pharmaceuticals, Inc. (SYRS) stands out with its innovative approach to treating hematologic malignancies. This blog post delves into Syros' Business Model Canvas, shedding light on its key partnerships, activities, and value propositions that drive its mission to develop groundbreaking therapies. Discover how Syros navigates the complexities of drug development, engages with healthcare providers, and focuses on addressing unmet medical needs in the oncology space.

Syros Pharmaceuticals, Inc. (SYRS) - Business Model: Key Partnerships

Collaborations with third-party manufacturers

Syros Pharmaceuticals has established collaborations with third-party manufacturers to support the production of its lead product candidate, tamibarotene. The company has a supply management agreement with TMRC Co. Ltd., under which it incurs fees for the production of tamibarotene. In the nine months ended September 30, 2024, Syros reported fees of $1.3 million under this agreement, consistent with the $1.8 million incurred in the same period the previous year.

Licensing agreements with biotech firms

In the past, Syros had a collaboration agreement with Global Blood Therapeutics (GBT), which generated revenue of $3.8 million and $9.6 million for the three and nine months ended September 30, 2023, respectively. However, this collaboration was terminated in October 2023, and Syros does not anticipate recognizing any further revenue from GBT.

Partnerships for diagnostic test development

Syros Pharmaceuticals is actively engaged in partnerships for the development of diagnostic tests. The company has partnered with Qiagen Manchester Limited to develop a kit-based testing solution aimed at future commercialization. Additionally, Syros is working with a leading provider of testing services to develop and validate a laboratory-developed test based on existing clinical trial assays.

Collaborations with academic institutions

Syros Pharmaceuticals collaborates with various academic institutions to further its research and development efforts. These collaborations are crucial for enhancing the company’s scientific knowledge and capabilities in drug development. The specific financial details or contributions from these academic partnerships are not publicly disclosed, but they play a significant role in the overall research strategy of Syros.

Partnership Type	Partner Name	Financial Commitment (2024)	Nature of Collaboration
Manufacturing	TMRC Co. Ltd.	$1.3 million	Production of tamibarotene
Licensing	Global Blood Therapeutics	$3.8 million (2023)	Collaboration for product development
Diagnostic Development	Qiagen Manchester Limited	N/A	Development of diagnostic kits
Academic Collaboration	Various Institutions	N/A	Research and development support

Syros Pharmaceuticals, Inc. (SYRS) - Business Model: Key Activities

Clinical trials for tamibarotene

Syros Pharmaceuticals is advancing its lead product candidate, tamibarotene, through various clinical trials. As of September 30, 2024, the external costs associated with tamibarotene amounted to $44.977 million for the nine months ended September 30, 2024, compared to $42.771 million for the same period in 2023. The company has engaged in a Phase 2 clinical trial to evaluate tamibarotene's efficacy in combination with other treatments for acute myeloid leukemia (AML).

Research and development of new therapies

Research and development (R&D) is a critical activity for Syros, with total R&D expenses reported at $67.134 million for the nine months ended September 30, 2024, a decrease from $86.650 million in the same period in 2023. The decrease is largely attributed to restructuring efforts and a shift in focus towards tamibarotene. The breakdown of R&D expenses includes:

Expense Category	2024 (in thousands)	2023 (in thousands)	Dollar Change	% Change
External Research and Development	$43,659	$49,186	($5,527)	(11%)
Employee-Related Expenses	$13,858	$21,644	($7,786)	(36%)
Stock-Based Compensation	$2,227	$4,236	($2,009)	(47%)
Consulting, Licensing, and Professional Fees	$3,541	$6,347	($2,806)	(44%)
Facilities and Other Expenses	$3,849	$5,237	($1,388)	(27%)

Regulatory submissions for drug approval

In pursuit of regulatory approval for tamibarotene, Syros has been preparing for submissions to the FDA and other regulatory bodies. The company anticipates incurring significant costs related to these submissions, which are part of the broader commercialization strategy. As of September 30, 2024, Syros had cash and cash equivalents of $58.275 million, which is expected to fund its regulatory efforts into the third quarter of 2025.

Commercialization planning and execution

As part of its commercialization strategy, Syros is developing a companion diagnostic test for tamibarotene. The company has partnered with Qiagen Manchester Limited for a kit-based testing solution to be used in conjunction with tamibarotene. Additionally, Syros aims to establish a commercial infrastructure to support the launch of tamibarotene, which includes sales, marketing, and distribution capabilities. The company has projected that it will need substantial additional funding to support these commercialization activities.

Syros Pharmaceuticals, Inc. (SYRS) - Business Model: Key Resources

Experienced research and development team

Syros Pharmaceuticals has a dedicated research and development team that focuses on advancing its pipeline of drug candidates. The company incurred approximately $67.1 million in research and development expenses for the nine months ended September 30, 2024. This investment reflects the company’s commitment to developing innovative therapies for hematologic malignancies.

Proprietary drug candidates and technologies

Syros is primarily focused on its lead product candidate, tamibarotene, which is in clinical development for acute myeloid leukemia (AML). The company also has other candidates in its pipeline, including SY-5609 and SY-2101. As of September 30, 2024, the external costs associated with the tamibarotene program amounted to $44.98 million for the nine months ended September 30, 2024.

Product Candidate	Development Stage	External Costs (9M 2024 in $ millions)
Tamibarotene	Clinical	44.98
SY-5609	Preclinical	0.07
SY-2101	Preclinical	0.72

Financial resources from equity and debt financing

As of September 30, 2024, Syros Pharmaceuticals reported cash and cash equivalents of $58.3 million. The company has raised capital through various means, including:

• Issuance of common stock, resulting in gross proceeds of approximately $45.0 million from a registered direct offering in December 2023.
• A credit facility with Oxford Finance, which increased the aggregate amount of term loans available to $100.0 million.

Intellectual property portfolio including patents

Syros Pharmaceuticals holds a robust intellectual property portfolio which is critical for protecting its proprietary technologies and drug candidates. This portfolio includes numerous patents related to its drug candidates, particularly tamibarotene. The company’s accumulated deficit as of September 30, 2024, was $756.2 million, highlighting the significant investment made in developing its intellectual property.

Intellectual Property Aspect	Details
Patents Filed	Multiple patents related to tamibarotene and other candidates
Accumulated Deficit	$756.2 million

Syros Pharmaceuticals, Inc. (SYRS) - Business Model: Value Propositions

Innovative treatments for hematologic malignancies

Syros Pharmaceuticals focuses on developing innovative treatments specifically targeting hematologic malignancies. Their lead product candidate, tamibarotene, is being investigated for its potential in treating acute myeloid leukemia (AML) and other related conditions. The company aims to provide therapies that improve patient outcomes through targeted treatment strategies.

Focus on genomically defined patient populations

Syros emphasizes a precision medicine approach by focusing on genomically defined patient populations. This strategy is designed to tailor treatments based on the specific genetic makeup of patients, thereby enhancing the efficacy of treatments. For instance, tamibarotene is predicated on targeting patients with RARA gene overexpression, which is crucial for optimizing therapeutic outcomes.

Combination therapies aimed at improved efficacy

In addition to single-agent therapies, Syros is exploring combination therapies to boost treatment efficacy. The company has been involved in clinical trials evaluating tamibarotene in combination with other agents, such as venetoclax and azacitidine, to determine the best therapeutic regimens for patients with AML. This combination approach is intended to enhance the overall effectiveness of treatment and provide new options for patients who may not respond to existing therapies.

Commitment to addressing unmet medical needs

Syros Pharmaceuticals is committed to addressing significant unmet medical needs within the oncology space. With a lack of effective treatments for certain hematologic malignancies, their focus on developing novel therapies aims to fill critical gaps in patient care. This commitment is reflected in their research and development expenditures, which totaled approximately $67.1 million for the nine months ended September 30, 2024, down from $86.7 million in the same period for 2023, indicating a strategic refocusing of resources towards high-potential programs .

Financial Metrics	2024 (Nine Months Ended Sept 30)	2023 (Nine Months Ended Sept 30)
Research and Development Expenses	$67.1 million	$86.7 million
Net Cash Used in Operating Activities	$81.5 million	$91.1 million
Net Loss	$33.4 million	$100.2 million
Cash and Cash Equivalents	$58.3 million (as of Sept 30, 2024)	$112.2 million (as of Sept 30, 2023)

As of September 30, 2024, Syros had an accumulated deficit of approximately $756.2 million, underscoring the significant investment required to advance their therapeutic candidates and the challenges inherent in drug development .

Syros Pharmaceuticals, Inc. (SYRS) - Business Model: Customer Relationships

Engagement with healthcare providers and specialists

Syros Pharmaceuticals engages healthcare providers and specialists through various initiatives, including educational programs and clinical trial opportunities. As of September 30, 2024, the company has focused on developing tamibarotene for the treatment of hematologic malignancies, which has involved collaborations with oncologists and hematologists across leading medical institutions.

Support for patients through educational resources

Syros Pharmaceuticals provides robust educational resources for patients, including informational materials about their treatments and conditions. In the nine months ended September 30, 2024, the company allocated approximately $67.1 million to research and development, a significant portion of which is directed towards enhancing patient education and support systems.

Collaboration with research institutions for clinical insights

Syros collaborates with various research institutions to gain clinical insights essential for product development. For instance, in the nine months ending September 30, 2024, Syros recognized $9.6 million in revenue from previous collaborations, although this collaboration with Global Blood Therapeutics was terminated in October 2023. The strategic partnerships are aimed at leveraging clinical data to refine product efficacy and patient outcomes.

Building trust through transparency in clinical data

Transparency in clinical data is crucial for building trust with healthcare providers and patients. Syros has committed to sharing clinical trial results and updates openly. As of September 30, 2024, the company reported a net loss of $33.4 million, reflecting its investment in transparent communications and ongoing clinical trials. The company aims to establish credibility and trust in the healthcare community by providing access to comprehensive clinical data.

Aspect	Details	Financial Implications
Engagement Strategy	Educational programs, clinical trials with specialists	Investment of $67.1 million in R&D for patient education
Patient Support	Informational resources and support systems	Part of the $67.1 million R&D budget
Collaborations	Partnerships with research institutions	Recognized $9.6 million from collaborations (prior to termination)
Transparency	Open sharing of clinical trial results	Reported net loss of $33.4 million, indicative of transparency efforts

Syros Pharmaceuticals, Inc. (SYRS) - Business Model: Channels

Direct sales to hospitals and clinics

Syros Pharmaceuticals primarily targets hospitals and clinics for direct sales, focusing on their lead product, tamibarotene. The company has not yet generated revenue from product sales as of September 30, 2024. The absence of revenue is due to the ongoing clinical development phase and the lack of completed product approvals.

Partnerships with pharmaceutical distributors

Syros has engaged in collaborations that may include partnerships with pharmaceutical distributors once products are approved. As of October 2023, the collaboration with Global Blood Therapeutics, now a subsidiary of Pfizer, was terminated, which previously contributed to revenue of $3.8 million in Q3 2023. Future partnerships will be critical for distribution once commercialization begins.

Participation in medical conferences and seminars

Syros actively participates in medical conferences and seminars to raise awareness about their products and engage with healthcare professionals. These events serve as platforms for education about tamibarotene and its potential applications in treating acute myeloid leukemia (AML). This outreach is crucial for building relationships with key stakeholders in the medical community.

Digital presence for outreach and education

Syros maintains a digital presence to facilitate outreach and education regarding their products and research initiatives. The company utilizes its website and social media channels to disseminate information about clinical trials, research findings, and educational resources for both healthcare providers and patients. As of September 30, 2024, Syros had cash and cash equivalents amounting to $58.3 million, which supports their ongoing marketing and outreach efforts.

Channel Type	Details	Current Status
Direct Sales	Target hospitals and clinics	No revenue generated yet
Partnerships	Collaborations with distributors	Terminated collaboration with GBT
Medical Conferences	Participation for outreach	Ongoing engagement with medical community
Digital Presence	Website and social media outreach	Active with educational resources

Syros Pharmaceuticals, Inc. (SYRS) - Business Model: Customer Segments

Oncologists and hematologists treating blood disorders

Syros Pharmaceuticals targets oncologists and hematologists who specialize in blood disorders, particularly those involved in treating myelodysplastic syndromes (MDS) and acute myeloid leukemia (AML). These specialists are crucial for the adoption of Syros's therapies, such as tamibarotene, which is aimed at patients with higher-risk MDS. As of September 30, 2024, Syros reported an accumulated deficit of $756.2 million, indicating substantial investment in research and development to cater to this segment .

Patients with higher-risk myelodysplastic syndromes

The primary patient segment for Syros consists of individuals diagnosed with higher-risk myelodysplastic syndromes (MDS). According to the American Cancer Society, approximately 20,000 new cases of MDS are diagnosed annually in the U.S., with a significant proportion classified as high-risk. The development of tamibarotene is aimed specifically at this patient demographic, highlighting Syros's commitment to addressing unmet medical needs in this area .

Healthcare institutions focusing on innovative treatments

Syros collaborates with healthcare institutions that prioritize innovative treatment options. These partnerships are essential for clinical trials and the eventual commercialization of new therapies. In the nine months ending September 30, 2024, Syros did not recognize any revenue from product sales, indicating a reliance on institutional collaborations and funding for ongoing development .

Research institutions interested in clinical collaborations

Research institutions represent another key customer segment for Syros Pharmaceuticals. These institutions are vital for conducting clinical trials and advancing new therapies through collaborative research. As of September 30, 2024, Syros's total research and development expenses were approximately $67.1 million, reflecting its focus on clinical collaboration as a pathway to future revenue .

Customer Segment	Key Characteristics	Market Size (U.S. Annually)	Financial Investment (2024)
Oncologists and hematologists	Specialize in blood disorders; critical for treatment adoption	~20,000 new MDS cases	$67.1 million (R&D expenses)
Patients with higher-risk MDS	High unmet medical needs; specific treatment focus	Approximately 20,000 annual cases	$0 (no revenue from product sales)
Healthcare institutions	Prioritize innovative treatments and clinical trials	Varies; based on institutional partnerships	$67.1 million (R&D expenses)
Research institutions	Engaged in clinical collaborations for drug development	Varies; based on collaboration agreements	$67.1 million (R&D expenses)

Syros Pharmaceuticals, Inc. (SYRS) - Business Model: Cost Structure

High research and development expenses

For the nine months ended September 30, 2024, Syros Pharmaceuticals reported total research and development expenses of $67.1 million, a decrease of approximately $19.5 million or 23% from $86.7 million for the same period in 2023. The breakdown of these expenses is as follows:

Expense Category	2024 (in thousands)	2023 (in thousands)	Dollar Change	% Change
External research and development	$43,659	$49,186	$(5,527)	(11%)
Employee-related expenses (excl. stock-based compensation)	$13,858	$21,644	$(7,786)	(36%)
Stock-based compensation	$2,227	$4,236	$(2,009)	(47%)
Consulting, licensing, and professional fees	$3,541	$6,347	$(2,806)	(44%)
Facilities and other expenses	$3,849	$5,237	$(1,388)	(27%)

Clinical trial costs and regulatory fees

The clinical trial costs are significant components of the research and development expenses. As of September 30, 2024, the company has been focusing on advancing clinical programs, particularly the development of tamibarotene. The restructuring of operations in 2023 led to a decrease in costs associated with prior clinical trials and discovery programs, which contributed to the overall decrease in R&D expenses.

Salaries for specialized personnel

Employee-related expenses, excluding stock-based compensation, totaled $13.9 million for the nine months ended September 30, 2024, down from $21.6 million in 2023. This reduction is largely due to a headcount decrease resulting from the restructuring efforts. The company has streamlined its workforce to align with its current operational strategy.

General and administrative overhead

General and administrative expenses also saw a decline, totaling $17.4 million for the nine months ended September 30, 2024, compared to $22.4 million for the same period in 2023, representing a 22% decrease. The components of these expenses include:

Expense Category	2024 (in thousands)	2023 (in thousands)	Dollar Change	% Change
General and administrative	$17,383	$22,394	$(5,011)	(22%)

The reduction in general and administrative expenses is attributed to lower facilities expenses, decreased consulting and professional fees, and further reductions in headcount.

Syros Pharmaceuticals, Inc. (SYRS) - Business Model: Revenue Streams

Potential future product sales from approved therapies

As of September 30, 2024, Syros Pharmaceuticals has not generated any revenue from product sales and does not anticipate generating revenue from product sales for the foreseeable future. The company has focused its resources on research and development aimed at bringing its therapeutic candidates to market, particularly the development of tamibarotene.

Licensing revenues from collaborations

Syros Pharmaceuticals has previously engaged in licensing agreements, including a collaboration with Global Blood Therapeutics, which generated revenues of $3.8 million and $9.6 million for the three and nine months ended September 30, 2023, respectively. However, this collaboration was terminated in October 2023, leading to no revenue recognized during the three and nine months ended September 30, 2024.

Milestone payments from partners

While specific milestone payment data for Syros Pharmaceuticals is not disclosed in the current financial statements, the company typically structures agreements with partners that may include milestone payments tied to various development stages of their product candidates. There are no reported milestone payments recognized in the recent quarters due to the termination of the collaboration agreements.

Grants and funding for research initiatives

Syros Pharmaceuticals is actively pursuing grants and funding opportunities to support its research initiatives. As of September 30, 2024, the company had cash and cash equivalents of approximately $58.3 million, which provides some buffer for ongoing research activities.

Revenue Source	Details	Financial Data (as of September 30, 2024)
Product Sales	No current product sales	$0
Licensing Revenues	Collaboration with Global Blood Therapeutics terminated	$0
Milestone Payments	No milestone payments recognized	$0
Grants and Funding	Cash and cash equivalents available for research	$58.3 million

Article updated on 8 Nov 2024

Resources:

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