Name: Syros Pharmaceuticals, Inc. Q4 2017 Earnings Call
Start: 2018-03-15T11:55:46.000Z

Executive Summary

Q4 2017: net loss widened to $15.3M and $(0.58) EPS; operating expenses increased (R&D $11.8M, G&A $3.7M), while quarterly revenue was $0 (vs $0.317M in Q4 2016) .
Year-end cash, cash equivalents and marketable securities were $72.0M; subsequent financing ($46M offering) and a $20M Incyte upfront/equity package extended the cash runway into 2020 .
Clinical execution continued: initial SY-1425 Phase 2 single-agent activity reported at ASH, with combination cohort data and SY-1365 dose-escalation data targeted for Q4 2018; expansion cohorts to open mid-2018 .
Estimate context: S&P Global consensus EPS and revenue for Q4 2017 were unavailable; comparison to street estimates cannot be provided.

What Went Well and What Went Wrong

“2017 was an important year... clinical and preclinical data for SY-1425 and SY-1365 lay a clear path forward... fortifying our cash position to fund operations into 2020” — Nancy Simonian, CEO .
Initial Phase 2 SY-1425 data showed biological and clinical activity: 43% clinical activity in R/R AML and HR MDS, CD38 induction in 85% of evaluable patients, and generally well tolerated chronic dosing .
Strategic collaboration with Incyte: $10M upfront cash, $10M equity at $12.61/share, plus up to $54M in validation/option payments and up to $115M per target in milestones (for up to seven targets), and low single-digit royalties .

Net loss and EPS widened YoY/QoQ due to higher R&D and G&A; R&D rose to $11.8M (vs $8.4M in Q4 2016) and G&A to $3.7M (vs $2.9M), driving loss from operations to $(15.5M) .
Revenue declined to $0 for Q4 2017; the prior research agreement expired in Q1 2017, eliminating a modest revenue source (FY 2017 revenue $1.1M vs $0.317M in 2016) .
Ongoing cash burn and need for external capital highlighted in filings; company expects continued operating losses and the need for substantial additional funding absent approvals or commercial revenues .

Quarterly trend vs prior quarters:

Metric	Q2 2017	Q3 2017	Q4 2017
Revenue ($USD Thousands)	$0	$0	$0
R&D Expense ($USD Thousands)	$10,041	$10,447	$11,780
G&A Expense ($USD Thousands)	$3,472	$3,593	$3,740
Total Operating Expenses ($USD Thousands)	$13,513	$14,040	$15,520
Loss from Operations ($USD Thousands)	$(13,513)	$(14,040)	$(15,520)
Other Income, net ($USD Thousands)	$145	$215	$218
Net Loss ($USD Thousands)	$(13,368)	$(13,825)	$(15,302)
EPS (Basic & Diluted, $)	$(0.52)	$(0.53)	$(0.58)
Weighted Avg Shares	25,584,147	26,259,216	26,316,550

YoY comparison:

Liquidity and balance metrics:

Metric	Q2 2017	Q3 2017	Q4 2017
Cash & Equivalents ($USD Thousands)	$79,531	$42,149	—
Marketable Securities ($USD Thousands)	$11,990	$39,799	—
Cash, Cash Equivalents & Marketable Securities ($USD Thousands)	$91,521	$81,948	$72,049
Total Assets ($USD Thousands)	$99,031	$88,677	$78,488
Total Stockholders’ Equity ($USD Thousands)	$91,081	$78,592	$65,324
Working Capital ($USD Thousands)	—	—	$60,746

Notes:

No segment reporting; company manages operations as one operating segment .
Margin metrics are not meaningful given lack of product revenue in the quarter .

Estimate comparison (Q4 2017):

Actual Revenue and EPS: Revenue $0; EPS $(0.58) .
Wall Street consensus (S&P Global): unavailable for SYRS; estimate comparisons not provided.

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Runway	Q2 2017 (10-Q)	Sufficient to end of 2018	—	—
Cash Runway	Jan 8, 2018 (8-K)	—	Into 2019	Raised
Cash Runway	Mar 12, 2018 (Q4 PR)	Into 2019	Into 2020 (reflecting Incyte and Feb 2018 offering)	Raised
Program Milestones	Jan 8, 2018	SY-1425 combos and SY-1365 dose escalation data in 2H 2018; ovarian expansion mid-2018	—	Maintained
Program Milestones	Mar 12, 2018	—	SY-1425 combo data and SY-1365 dose escalation data expected in Q4 2018; expansion cohorts mid-2018	Tightened timeline specificity
Financing	Feb 2018	—	$46M underwritten offering; $1.4M private placement with Incyte	New

(Note: No Q4 2017 earnings call transcript was available among filings; themes reflect 10-Qs and press releases.)

Topic	Previous Mentions (Q2 2017 10-Q and Q3 2017 10-Q)	Current Period (Q4 PR / Jan 8 8-K)	Trend
Gene control platform	Emphasis on non-coding genome and biomarkers (RARA/IRF8); single operating segment; pipeline build	Continued focus; slides detail platform and discovery across oncology/I-O and monogenic diseases	Consistent, expanding scope
SY-1425 clinical execution	Phase 2 enrollment; initial data planned for Q4 2017; combination cohorts added	Initial single-agent activity shown; combination data targeted Q4 2018; azacitidine and daratumumab combinations highlighted	Advancing to combo-readouts
SY-1365 clinical execution	Phase 1 enrollment in advanced solid tumors	Dose-escalation data targeted Q4 2018; expansion into ovarian and HR+ breast cohorts mid-2018	Advancing; expansion planned
Regulatory/legal/collaborations	No revenue from product sales; prior research agreement expired	Incyte collaboration with $10M cash + $10M equity and significant potential milestones/royalties	Positive strategic partnership
Financing and runway	Private placement in Apr 2017; runway to end of 2018	$46M offering Feb 2018; runway into 2020	Strengthened liquidity

“We built on our strong foundation... fortifying our cash position to fund our planned operations into 2020 and drive SY-1425 and SY-1365 to key value inflection points” — Nancy Simonian, CEO .
On SY-1425 activity: “We saw improved blood counts and reduced blast counts... These data... suggest SY-1425 could be a meaningful combination agent” — Joseph G. Jurcic, Columbia University (ASH presentation context) .
Corporate development: appointment of Joseph J. Ferra as CFO and strengthening of business leadership .

No Q4 2017 earnings call transcript was available in company filings; updates were delivered via press releases and 8-Ks. Q&A highlights cannot be provided.

We attempted to retrieve S&P Global consensus EPS and revenue for Q4 2017 but consensus was unavailable for SYRS; therefore estimate comparisons are not provided. Where estimates are required, please note they were unavailable via S&P Global at this time.

Cash runway extended into 2020 post-Incyte deal and Feb 2018 offering, reducing near-term financing risk and supporting multiple clinical readouts .
Net loss widened QoQ/YoY driven by higher R&D and G&A as programs advance; expect continued elevated spend into 2018–2019 per filings .
SY-1425 shows biomarker-driven biological and clinical activity; combination data in Q4 2018 and CD38 induction underpin daratumumab strategy — key catalysts .
SY-1365 progression with dose-escalation data targeted in Q4 2018 and planned ovarian/breast expansion cohorts may broaden addressable indications — another catalyst set .
Strategic optionality enhanced by Incyte collaboration with substantial potential milestone economics and royalties across up to seven targets .
Revenue remains de minimis; valuation is tied to clinical milestones and capital position rather than near-term P&L metrics — monitor burn rate and execution timelines .
Focus diligence on Q4 2018 data windows (SY-1425 combos and SY-1365) and any interim safety/PK updates that could shift probability of success and funding needs .