Goldman Sachs initiates coverage on Syndax stock with Buy rating

Investing.com - Goldman Sachs has initiated coverage on Syndax Pharmaceuticals (NASDAQ:SNDX) with a Buy rating and a price target of $18.00. According to InvestingPro data, the company, currently valued at $795 million, appears undervalued based on its Fair Value analysis.

The investment bank’s positive outlook is based on its assessment of both near-term and peak revenue opportunities for Revuforj, Syndax’s wholly-owned lead drug currently approved for treating relapsed/refractory acute myeloid leukemia patients with specific KMT2A rearrangements. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 5.8, providing financial flexibility to support drug development and commercialization efforts.

Revuforj is also under regulatory review for r/r AML with NPM1 mutations, with an approval decision expected on October 25, 2025. Goldman Sachs estimates peak sales for these combined opportunities at $1.1 billion, not including potential use in frontline settings.

The firm also highlights Syndax’s partnership with INCY on Niktimvo, which is approved for chronic Graft-versus-Host Disease and in development for Idiopathic Pulmonary Fibrosis. This agreement includes 50/50 US co-commercialization rights and royalties outside the US, estimated as a peak $180 million opportunity for Syndax in cGvHD alone.

Goldman Sachs notes its revenue estimates for Syndax are 10% above consensus for 2025 and 2% above for 2026, according to Visible Alpha data, with the ongoing launch in AML serving as the primary driver of its investment thesis. InvestingPro reveals additional insights, including anticipated sales growth and five analyst earnings upgrades for the upcoming period. Subscribers can access 6 more exclusive ProTips and comprehensive analysis in the Pro Research Report.

In other recent news, Syndax Pharmaceuticals has announced that the U.S. Food and Drug Administration (FDA) granted Priority Review for its supplemental New Drug Application (sNDA) for Revuforj, aimed at treating relapsed or refractory mutant NPM1 acute myeloid leukemia. This application is under the FDA’s Real-Time Oncology Review program, which could expedite the review process. The sNDA is supported by promising data from the AUGMENT-101 trial, which showed a 26% complete remission rate among patients with mutant NPM1 AML. Additionally, positive results from the BEAT AML trial were reported, where Revuforj, in combination with venetoclax and azacitidine, demonstrated a 67% complete remission rate in newly diagnosed patients. Meanwhile, William Meury has resigned from the Syndax Pharmaceuticals board following his new role as CEO at Incyte (NASDAQ:INCY) Corporation. The company clarified that his departure was not due to any disagreements with Syndax. These developments reflect significant progress in Syndax’s efforts to expand the treatment options for acute myeloid leukemia.

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