CAMBRIDGE, MA – Syros Pharmaceuticals, Inc. (NASDAQ:SYRS), a biopharmaceutical company, disclosed significant corporate developments, including the termination of a key agreement, a default notice on a loan, and a major workforce reduction. These announcements were part of a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission today.
On November 13, 2024, Syros notified QIAGEN Manchester Limited of its decision to terminate the Master Collaboration Agreement from March 7, 2022, due to its SELECT-MDS-1 Phase 3 trial's failure to meet the primary endpoint.
The trial's outcome, reported on November 13, 2024, has also led to a default under a Loan Agreement with Oxford Finance LLC, with all loan obligations, totaling approximately $43.7 million, being declared immediately due and payable. The company made a partial repayment of $33.5 million and is seeking to negotiate a forbearance agreement with Oxford.
Additionally, Syros is enacting a 94% reduction in its workforce, expected to be completed by December 6, 2024, as a cost-saving measure following the trial's outcome. The financial impact of the layoffs is currently undetermined.
The company also announced the departure of several directors and officers. Andrew M. Oh resigned from the Board on November 12, 2024, followed by resignations from Srinivas Akkaraju, Deborah Dunsire, S. Gail Eckhardt, Timothy Tyson, and Richard Young on November 15, 2024. These resignations were not due to any disagreement with the company.
Furthermore, Conley Chee, President and CEO; Jason Haas, CFO; and Dr. David Roth, Chief Medical (TASE:PMCN) Officer, will leave their positions effective November 22, 2024. Gerald Quirk, Esq., currently Chief Legal & Compliance Officer and Chief Business Officer, will assume the role of President and CEO on that date, with a new annual base salary of $636,000.
These strategic shifts come as Syros Pharmaceuticals aims to navigate the aftermath of the clinical trial's failure and to stabilize its financial situation. The information in this article is based on the company's SEC filing.
In other recent news, Syros Pharmaceuticals faced significant developments following the failure of its Phase 3 SELECT-MDS-1 trial. The trial, which was testing tamibarotene combined with azacitidine, did not meet its primary goal, leading to stock downgrades by H.C. Wainwright, TD Cowen, and JMP Securities.
H.C. Wainwright downgraded Syros Pharmaceuticals stock to a Neutral rating from Buy, TD Cowen downgraded the stock from Buy to Hold, and JMP Securities cut its rating from Market Outperform to Market Perform.
In response to these developments, Syros Pharmaceuticals has stated that it intends to conduct a thorough analysis of the SELECT-MDS-1 data to decide on future actions for the program. Despite the trial's setback, the results did show a slight trend favoring tamibarotene over the control.
In financial news, Syros Pharmaceuticals reported no revenue for Q3 2024 and a net loss of $6.4 million. Despite this, the company maintains sufficient cash reserves to fund operations into Q3 2025. Syros is preparing for the commercial launch of tamibarotene and exploring business development opportunities for the CDK7 inhibitor asset, 5609.
These are the recent developments in Syros Pharmaceuticals' journey.
InvestingPro Insights
The recent developments at Syros Pharmaceuticals are reflected in the company's current financial metrics and market performance. According to InvestingPro data, Syros has a market capitalization of just $6.95 million, highlighting the significant impact of the recent clinical trial failure and subsequent corporate restructuring.
InvestingPro Tips indicate that Syros is "quickly burning through cash" and "not profitable over the last twelve months," which aligns with the company's decision to terminate key agreements and reduce its workforce. The stock's performance has been particularly concerning, with InvestingPro noting that it has "taken a big hit over the last week" and is "trading near 52-week low." This is further evidenced by the stark 91.97% decline in the 1-week price total return.
The company's financial struggles are also apparent in its revenue figures, with InvestingPro data showing a revenue of just $0.39 million for the last twelve months as of Q3 2024, representing a staggering 95.61% revenue decline. This data underscores the severity of Syros' current situation and the challenges it faces in regaining financial stability.
For investors seeking a more comprehensive analysis, InvestingPro offers 19 additional tips for Syros Pharmaceuticals, providing deeper insights into the company's financial health and market position.
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