Syndax Pharma Shares Rise on $35M Capital Raise, Credit Line and Positive Phase 1/2 Leukemia Trial Results
Syndax Pharmaceuticals' shares traded 30% higher after the company reported it expects to raise $35 million from a common stock offering from five institutional investors and secured a $30 million non-dilutive term loan facility.
Clinical stage biopharmaceutical company Syndax Pharmaceuticals Inc. (SNDX:NASDAQ), which is developing an innovative pipeline of cancer therapies, today announced that "it has entered into an agreement with five leading life sciences investors, including Biotechnology Value Fund L.P., Boxer Capital and AI Life Sciences Investments LLC, an affiliate of Access Industries Inc., for the purchase of common stock at $8.00 per share, representing a premium of 20% to the share price as of market close on Thursday, January 30, 2020." The company advised that it expects the transaction to close on or around February 4, 2020, and will provide approximately $35 million in aggregate gross proceeds to the firm.
Additionally, Syndax reported that it entered into a term sheet with Hercules Capital Inc. (HTGC:NYSE) for a term loan of up to $30 million to support the company's pipeline development. The agreement states that Hercules would fund $20 million initially and allow for a potential second tranche of $10 million subject to meeting certain provisions.
The announcement came just one day after the company reported results that support ongoing Phase 1/2 AUGMENT-101 trial of Syndax its lead Menin-MLL inhibitor, SNDX-5613, for the treatment of adults with relapsed/refractory acute leukemias, including NPM1 mutant AML. The firm made the announcement that "Science magazine has published a preclinical report titled supporting the potential role of MLL1-Menin inhibition in the management of nucleophosmin (NPM1) mutant acute myeloid leukemia (AML)."
Scott A. Armstrong, M.D., Ph.D., president of the Dana-Farber/Boston Children's Cancer and Blood Disorders Center, chairman of the Department of Pediatric Oncology at the Dana-Farber Cancer Institute and senior author of the study, commented, "These unprecedented findings highlight the potential for single agent Menin-MLL inhibition to rapidly eradicate fully developed NPM1 mutant leukemia, even in the case of aggressive relapsed AML...these results provide support for a Menin-MLL inhibitor to serve as a novel strategy to prevent AML development in high-risk patient populations, as NPM1 mutations are acquired in pre-leukemic clones."
The company's CEO Briggs W. Morrison, M.D. remarked, "NPM1 mutant AML represents the most common type of cytogenetically normal AML...On the heels of our recent Cancer Cell publication, these findings add to the growing body of compelling preclinical data supporting the potential for SNDX-5613 to serve as an effective intervention for both NPM1 mutant AML and MLL-r acute leukemias. We are committed to providing patients with more targeted therapeutic options and are hopeful that these findings will translate into the clinic in our ongoing Phase 1/2 AUGMENT-101 trial."
Syndax Pharmaceuticals is headquartered in Waltham, Mass., and began the day with a market capitalization of around $180.8 million with approximately 27.14 million shares outstanding. SNDX shares opened more than 20% higher today at $8.17 (+$1.51, +22.67%) over yesterday's $6.66 closing price. The stock has traded today between $7.80 and $9.50 per share and is currently trading at $9.39 (+$2.70, +40.39%).
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