Syros Pharmaceuticals (NASDAQ: SYRS), a biopharmaceutical company pioneering the discovery and development of medicines to control the expression of genes, today reported financial results for the fourth quarter and year ended December 31, 2017 and provided an update on recent accomplishments and planned upcoming events.
“2017 was an important year for Syros, marked by clinical and preclinical data for SY-1425 and SY-1365 that lay a clear path forward for the further development of both programs,” said Nancy Simonian, M.D., Chief Executive Officer of Syros. “Additionally, our pioneering gene control platform continued to deliver, enabling us to expand our early-stage pipeline in cancer and monogenic diseases and enter into a collaboration with Incyte designed to allow us to benefit patients with diseases beyond our current areas of focus. We built on our strong foundation, adding to the leadership team and fortifying our cash position to fund our planned operations into 2020 and drive SY-1425 and SY-1365 to key value inflection points. As we enter 2018, we believe we are well-positioned to execute on our near-term and long-term goals to achieve our vision of becoming a fully integrated biopharmaceutical company with medicines that provide a profound and durable benefit for patients.”
Upcoming Milestones
Recent Platform and Pipeline Highlights
Recent Corporate Highlights
Fourth Quarter 2017 Financial Results
Cash, cash equivalents and marketable securities as of December 31, 2017 were $72.0 million, compared with $83.6 million on December 31, 2016. Cash, cash equivalents and short-term investments as of December 31, 2017 do not include the aggregate gross proceeds of approximately $46 million from Syros’ underwritten public offering of common stock, which closed in February 2018, the $1.4 million in proceeds from the private placement of stock with Incyte concurrent with the public offering, or the $10 million upfront payment and purchase of $10 million in Syros common stock received in January 2018 in connection with entry into the collaboration with Incyte.
For the fourth quarter of 2017, Syros reported a net loss of $15.3 million, or $0.58 per share, compared to a net loss of $11.0 million, or $0.47 per share, for the same period in 2016. Stock-based compensation included in the net loss was $1.3 million for the fourth quarter of 2017, compared to $0.7 million for the same period in 2016.
Full Year 2017 Financial Results
For the full year ended December 31, 2017, net loss was $54.0 million, or $2.13 per share, as compared to a net loss of $47.7 million, or $4.05 per share, for the same period in 2016. Stock based compensation included in the net loss was $4.4 million for the year ended December 31, 2017, compared to $4.2 million for the same period in 2016.
Financial Guidance
Based on its current plans, Syros believes that its cash, cash equivalents and short-term investments as of December 31, 2017, together with cash received in connection with entry into the collaboration with Incyte and the underwritten public offering and concurrent private placement of common stock that closed in February 2018, will be sufficient to enable it to fund its planned operating expense and capital expenditure requirements into 2020.
About Syros Pharmaceuticals
Syros is pioneering the
understanding of the non-coding region of the genome to advance a new
wave of medicines that control expression of genes. Syros has built a
proprietary platform that is designed to systematically and efficiently
analyze this unexploited region of DNA in human disease tissue to
identify and drug novel targets linked to genomically defined patient
populations. Because gene expression is fundamental to the function of
all cells, Syros’ gene control platform has broad potential to create
medicines that achieve profound and durable benefit across a range of
diseases. Syros is currently focused on cancer and monogenic diseases
and is advancing a growing pipeline of gene control medicines. Syros’
lead drug candidates are SY-1425, a selective RARα agonist in a Phase 2
clinical trial for genomically defined subsets of patients with acute
myeloid leukemia and myelodysplastic syndrome, and SY-1365, a selective
CDK7 inhibitor in a Phase 1 clinical trial for patients with advanced
solid tumors. Led by a team with deep experience in drug discovery,
development and commercialization, Syros is located in Cambridge, Mass.
Cautionary Note Regarding Forward-Looking Statements
This
press release contains forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995, including without
limitation statements regarding the Company’s ability to achieve its
near- and long-term goals; its ability to advance its clinical-stage
programs, including the reporting of clinical data from the combination
cohorts of the ongoing Phase 2 clinical trial of SY-1425 and the dose
escalation phase of the SY-1365 clinical trial in the fourth quarter of
2018, and the initiation of expansion cohorts of SY-1365 in ovarian and
breast cancer in mid-2018; the selection of a development candidate for
IND-enabling studies during 2018; the Company’s ability to expand its
early pipeline in cancer and monogenic diseases; the benefits of the
Company’s target discovery collaboration with Incyte; the Company’s
ability to fund its planned operations into 2020; and the benefits of
Syros’ gene control platform. The words ‘‘anticipate,’’ ‘‘believe,’’
‘‘continue,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’
‘‘plan,’’ ‘‘potential,’’ ‘‘predict,’’ ‘‘project,’’ ‘‘target,’’
‘‘should,’’ ‘‘would,’’ and similar expressions are intended to identify
forward-looking statements, although not all forward-looking statements
contain these identifying words. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in
these forward-looking statements as a result of various important
factors, including Syros’ ability to: advance the development of its
programs, including SY-1425 and SY-1365, under the timelines it projects
in current and future clinical trials; demonstrate in any current and
future clinical trials the requisite safety, efficacy and combinability
of its drug candidates; replicate scientific and non-clinical data in
clinical trials; successfully develop a companion diagnostic test to
identify patients with the RARA and IRF8 biomarkers;
obtain and maintain patent protection for its drug candidates and the
freedom to operate under third party intellectual property; obtain and
maintain necessary regulatory approvals; identify, enter into and
maintain collaboration agreements with third parties, including its
ability to perform under the collaboration agreement with Incyte; manage
competition; manage expenses; raise the substantial additional capital
needed to achieve its business objectives; attract and retain qualified
personnel; and successfully execute on its business strategies; risks
described under the caption “Risk Factors” in Syros’ Annual Report on
Form 10-K for the year ended December 31, 2017, which is on file with
the Securities and Exchange Commission; and risks described in other
filings that Syros makes with the Securities and Exchange Commission in
the future. Any forward-looking statements contained in this press
release speak only as of the date hereof, and Syros expressly disclaims
any obligation to update any forward-looking statements, whether because
of new information, future events or otherwise.
Syros Pharmaceuticals, Inc. |
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December 31, 2017 | December 31, 2016 | |||||||
Cash, cash equivalents and marketable securities | $ | 72,049 | $ | 83,593 | ||||
Working capital1 The Company defines working capital as current assets less current liabilities. See the Company’s consolidated financial statements for further details regarding its current assets and current liabilities. | 60,746 | 75,941 | ||||||
Total assets | 78,488 | 91,323 | ||||||
Total stockholders’ equity | 65,324 | 80,602 | ||||||
Syros Pharmaceuticals, Inc. Condensed consolidated statements of operations (in thousands, except share and per share data) (unaudited) |
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Three Months Ended | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue | $ | — | $ | 317 | $ | 1,101 | $ | 317 | ||||||||
Operating expenses: | ||||||||||||||||
Research and development | 11,780 | 8,443 | 41,896 | 37,817 | ||||||||||||
General and administrative | 3,740 | 2,919 | 13,891 | 10,463 | ||||||||||||
Total operating expenses | 15,520 | 11,362 | 55,787 | 48,280 | ||||||||||||
Loss from operations | (15,520) | (11,045) | (54,686) | (47,963) | ||||||||||||
Other income, net | 218 | 80 | 676 | 220 | ||||||||||||
Net loss | $ | (15,302) | $ | (10,965) | $ | (54,010) | $ | (47,743) | ||||||||
Accrued dividends on preferred stock | — | — | — | (3,681) | ||||||||||||
Net loss applicable to common stockholders | $ | (15,302) | $ | (10,965) | $ | (54,010) | $ | (51,424) | ||||||||
Net loss per share applicable to common stockholders - basic and diluted | $ | (0.58) | $ | (0.47) | $ | (2.13) | $ | (4.05) | ||||||||
Weighted-average number of common shares used in net loss per share applicable to common stockholders - basic and diluted | 26,316,550 | 23,374,734 | 25,406,845 | 12,696,414 |
1The Company defines working capital as current assets less current liabilities. See the Company’s consolidated financial statements for further details regarding its current assets and current liabilities.
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