Based in Watertown, Massachusetts, Syros Pharmaceuticals (Nasdaq: SYRS) is a biopharmaceutical company that is developing treatments to control genes in patients with cancer, immune-mediated diseases, and other illnesses.

SYRS initially offered 4.0 million shares at an expected price range of $14 to $16.

Lead Underwriters: Cowen & Company and Piper Jaffray

Underwriters: JMP Securities and Wedbush Securities

Business Summary: Biopharmaceutical Developing Treatments to Control Genes in Certain Diseases

Syros Pharmaceuticals is a biopharmaceutical company that is developing treatments, which control genes involved in cancer and additional immune-mediated diseases. Its proprietary platform identifies gene control targets, which have been linked to genomically-defined patient segments. The platform also identifies potential new drug targets in a range of diseases, allows users to advance a wave of medications with a potential to affect multiple drivers of disease via a single target, and provides a lens for diagnosing and categorizing patients, including those with multi-factorial and complex diseases.

The company's drug pipeline includes sY-145, a selective RARa agonist for subsets of patients who suffer from acute myeloid leukemia (AML) and high-risk myelodysplastic syndrome (MDS). The pipeline also includes SY-1365, a selective CDK7 inhibitor for acute leukemia.

Source: Syros

As an alternative to many current treatments, gene control therapies target alterations in the cell's underlying gene expression.

Use of Proceeds: Primarily For Additional Clinical Trials

Syros Pharmaceuticals intends to use the net proceeds from the IPO to fund a Phase 2 clinical trial for SY-1425 in AML and MDS, a Phase ½ clinical trial for SY1365, and preclinical programs. Any remaining funds will be used for working capital and general corporate purposes.

Executive Management: Impressive Academic, Industry Credentials

CEO and Director Dr. Nancy Simonian, M.D. has served in her position since April 2013. Her previous experience comes from executive positions at Millennium Pharmaceuticals, Biogen, Seattle Genetics, and Arqule. Dr. Simonian is Assistant Clinical Professor, Neurology, at Harvard Medical School/Massachusetts General Hospital, and she holds a BA in Biology from Princeton University and an M.D. from the University of Pennsylvania Medical School.

CFO and Chief Product Officer Jorge Conde has served at Syros Pharmaceuticals since June 2014. He co-founded Knome in 2007. His previous experience includes positions at MedImmune, Helicos Biosciences and Morgan Stanley. Mr. Conde holds an MBA from Harvard Business School, an MS from the Harvard-MIT Division of Health Sciences and Technology (HST) and a Bachelor's degree in Biology from The Johns Hopkins University.

Potential Competition: Daiichi Sankyo Company, Novartis and Others

Syros Pharmaceuticals intends to develop SY-1425 initially for patients with AML or MDS. Currently, very few treatment options exist for these patients. However, several other pharmaceutical companies are developing treatments that will compete with SY-1425, including Daiichi Sankyo, Boehringer Ingelheim GmbH, Agios Pharmaceuticals (Nasdaq: AGIO), Novartis (NYSE: NVS), Astellas Pharma and Karyopharm Therapeutics (Nasdaq: KPTI).

Early Stage Financial Overview

Syros Pharmaceuticals provided the following figures from its financial documents for the three months ending March 31:

As of March 31, 2016:

Conclusion: Consider Holding Off

We remain cautious on SYRS at this early stage. Revenues are N/A, while net losses more than doubled 2014-2015 (and for the three mos. ended March 31, 2015-2016). Additional risks include a limited operating history and novel/unproven approach. Markets continue to be shaky, post-'Brexit'.