In an update to investors that included announcement of 2Q2016 results, Syros Pharmaceuticals Inc. (NASDAQ: SYRS) said it is on track to begin a Phase 2 clinical study of its lead drug candidate in 3Q2016.
The candidate is known as SY-1425 and it is being developed to treat relapsed/refractory acute myeloid leukemia (AML). In addition to SY-1425, Syros has another pipeline candidate called SY-1365 that it says is due to enter Phase 1/2 study in 1H2017. SY-1365 is a CDK7 inhibitor that has already shown some promise.
But with the issue of candidate studies, the major question at this juncture is whether Syros has the funds to bankroll its trial programs.
Money is not a problem
Though Syros Pharmaceuticals Inc. (NASDAQ: SYRS) did not say it directly in its investor update that money is currently not a limitation, a highlight on the company’s wealth left no doubt the management now feels more confident about future clinical and preclinical programs.
CEO Nancy Simonian said that they expect the recently completed IPO to provide them with funds that should be adequate to finance operations at least until mid-2018. That includes financing clinical programs for Syros’ two lead candidates.
IPO funds – Syros Pharmaceuticals Inc. (NASDAQ: SYRS)
Syros Pharmaceuticals Inc. (NASDAQ: SYRS) offered 4.6 million common shares to the public in its IPO completed last month. The shares were offered at a price of $12.50 apiece, thus generating close to $57.5 million in gross proceeds.
But net proceeds from the IPO are expected to be about $49.9 million.
On top of the IPO funds, Syros closed 2Q with cash and equivalents totaling $ 50.1 million.
As such, in the near to medium term, money doesn’t seem to be a problem for Syros. The major worry for the company currently is completing enrolment for the mid-stage trial of its lead AML candidate and rolling out the program.
How Syros fared in 2Q
Syros Pharmaceuticals Inc. (NASDAQ:SYRS) posted EPS loss of $5.42 in 2Q, wider than EPS loss of $4.16 in the same period last year.