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On Tuesday, Goldman Sachs analyst Chris Shibutani adjusted the price target for Syndax Pharmaceuticals (NASDAQ:SNDX) to $31 from a previous $33, while continuing to endorse the stock with a Buy rating. Currently trading at $15.48, the stock sits within a broader analyst target range of $16 to $51, according to InvestingPro data. The revision follows Syndax’s fourth-quarter results, which included the company’s inaugural commercial sales report for Revuforj since its approval in November 2024.
Syndax Pharmaceuticals reported revenues of approximately $7.7 million for the fourth quarter of 2024, surpassing Goldman Sachs and consensus estimates of $3.3 million and $2.0 million, respectively. These results were based on only five weeks of sales during the year-end holiday period. The revenue included around $5 million from new patient starts and the remaining from inventory build-up. InvestingPro analysis shows strong sales growth potential, with analysts forecasting revenue growth of 228% for FY2025.
During an investor dinner with the company’s management, the team expressed confidence in the early launch dynamics of Revuforj. They indicated that about one-third of the high-priority Tier 1 and 2 accounts, which represent roughly two-thirds of the patient opportunity, had started prescribing Revuforj by the end of February. Management’s comments on access were also positive, with coverage reaching 56% of commercial lives and 53% of managed care lives, positioning SNDX to leverage its first-mover advantage.
Goldman Sachs also highlighted updates that reinforce their confidence in Syndax’s pipeline prospects. These updates include the NPM1 filing, which is expected to occur in the second quarter of 2025, and ongoing progress in multiple studies aimed at advancing Revuforj into front-line treatment settings. The company’s guidance for 2025 operating expenses is about 2% lower than Goldman Sachs’s prior forecast.
The firm noted that Syndax’s cash reserves at the end of 2024, amounting to $692 million, are in line with the company’s goal to achieve profitability. According to InvestingPro data, the company maintains a healthy current ratio of 5.82 and holds more cash than debt on its balance sheet, providing substantial runway for its commercialization efforts. Despite the reduction in the price target, due to model updates, Goldman Sachs recommends buying the stock, especially given the muted response in share value following the announcement. For deeper insights into SNDX’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Syndax Pharmaceuticals reported its fourth-quarter earnings, revealing a revenue of $7.68 million, which fell short of the projected $25.2 million. The company also missed its earnings per share (EPS) forecast, posting an EPS of -1.1 compared to the expected -0.9857. Despite these misses, the launch of their new drug, Revuforj, showed promising results with net sales of $7.7 million in just five weeks, surpassing the consensus forecast of $2 million. B.Riley analyst Kalpit Patel subsequently adjusted the price target for Syndax Pharmaceuticals to $29 from $36, while maintaining a Buy rating, indicating continued confidence in the company’s market potential.
The company is on track to submit a supplemental New Drug Application (sNDA) for Revuforj targeting the NPM1m patient group in the second quarter of 2025, with potential FDA approval by year-end. Syndax also highlighted its plans for multiple clinical trials and international expansion, with projected R&D expenses for 2025 ranging between $260 million and $280 million. These developments come as Syndax continues to capitalize on its early entry into the relapsed/refractory acute myeloid leukemia (r/r AML) market, although B.Riley has moderated long-term revenue expectations due to anticipated competition. The company’s financial position remains robust, with $692.4 million in cash and investments, expected to support its operations through profitability.
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