JP Morgan optimistic on Syndax Pharma's leukemia treatment

Syndax Pharmaceuticals

03/01/2023 15:50

** JP Morgan initiates coverage for Syndax Pharmaceuticals
Inc  SNDX.O  at "overweight" rating on prospects of its acute
leukemia therapy candidate revumenib 
    ** Brokerage believes revumenib is de-risked based on trial
data to date; SNDX in Nov reported positive data from
early-stage portion of revumenib's ongoing early-to-mid-stage
trial
    ** Also sees potential in co's monoclonal antibody candidate
- axatilimab - in treating graft-versus-host disease (GVHD) to
emerge both as underappreciated value driver near and long-term 
    ** Sets $1.3 bln peak sales estimate for revumenib and $380
mln for axatilimab, both at slightly higher end of the Street
range; assigns SNDX $41 PT
    ** JP Morgan eyes mid-stage GVDH trial data for axatilimab
expected in mid-2023 and data from at least one of the trial
populations for revumenib anticipated in Q3 of 2023 
    ** Leukemia is a type of cancer which affects the production
and function of blood cells in the body while GVHD is a syndrome
that causes inflammation in different organs
    ** FDA in December 2022 granted "Breakthrough Therapy
Designation" (BTD) to revumenib 
    ** SNDX shares now up 2.3% at ~$26
    ** In 2022, SNDX was up 16.3% 
 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))