Clinical-stage biopharmaceutical company Syndax Pharmaceuticals, Inc. (SNDX) is focused on developing therapies for cancer and has three products in its pipeline. Its SNDX-5613 is being developed for mixed-lineage leukemia and rearranged acute leukemia.
SNDX-5613 has received orphan drug designation from the European Commission for the treatment of acute myeloid leukemia (AML). The drug has also received orphan drug designation from the U.S. FDA for treating adult and pediatric AML.
Syndax’s other two product candidates are axatilimab and entinostst. Axatilimab is a monoclonal antibody, and entinostat is a class I HDAC inhibitor.
The company’s fourth-quarter numbers are expected on March 7. Analysts expect the company to report a net loss per share of $0.59 against a net loss per share of $0.44 for the year-ago period.
Investing in healthcare stocks entails potential risks for investors as clinical-stage companies can take years to bring a product to market after lengthy and multi-stage product development and approval process.
Let us take a look at the changes in Syndax’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Syndax’s top risk category is Tech & Innovation, contributing 35% (compared to a sector average of 24%) to the total 54 risks identified. In its recent quarterly report, the company has added two key risk factors.
Under the Finance & Corporate risk category, Syndax noted that it has entered into a collaboration and license agreement with Incyte for the development and commercialization of axatilimab. The risk remains that if the two companies fail to perform as envisaged under this collaboration, then Syndax’s potential revenue could be significantly reduced. Furthermore, the development efforts for the drug could get delayed or stopped, affecting Syndax’s business in the process.
Under the Production risk category, Syndax highlighted that due to the value of its common shares held by non-affiliates, the company will no longer be classified as a smaller reporting company and will be a large accelerated filer. This will increase Syndax’s costs and place higher demands on its management. If the company is not able to comply with regulatory requirements in a timely fashion, then its stock price could suffer.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have decreased holdings in Syndax by 536.7 thousand shares in the last quarter, indicating a neutral hedge fund confidence signal in the stock.
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