Syros acquires clinical-stage candidate for $12M; expects $90.5M of financing

 

• Syros Pharmaceuticals (NASDAQ:SYRS) acquires from Orsenix all of its assets related to SY-2101, formerly known as ORH-2014, an oral form of arsenic trioxide that's a candidate for treating acute promyelocytic leukemia.
• Syros has made an upfront cash payment of $12M; Orsenix may be eligible to receive a $6M regulatory milestone related to the development of SY-2101 in APL and commercial milestones of up to $10M.
• Orsenix is also eligible to receive single-digit million milestone payments related to the development of SY-2101 in indications other than APL.
• Following confirmation of a dose that demonstrates comparable pharmacokinetics to IV ATO, Syros intends to initiate a registration-enabling Phase 3 trial in patients with newly diagnosed APL in 2022. Syros expects that it could file a new drug application with the FDA in 2024.
• $90.5M strategic financing: Syros also agreed to sell equity securities in a private placement to a group of institutional accredited investors led by Bain Capital Life Sciences with participation from Ally Bridge Group, Omega Funds, OrbiMed, EcoR1 Capital, and Samsara BioCapital.
• Gross proceeds are expected to be $90.5M. The private placement is expected to close on or about Dec. 8, 2020, subject to the satisfaction of customary closing conditions.
• The private placement includes the sale of 10.3M shares of Syros common stock and, in lieu of shares of common stock, pre-funded warrants  to purchase an aggregate of 1M shares of common stock, and accompanying warrants to purchase an aggregate of up to ~2.8M additional shares of common stock at a price of $8.00 per share and accompanying warrant (or $7.99 per pre-funded warrant and accompanying warrant).
• As a result of the transactions, Syros expects to have sufficient funds for planned operating expenses and capital expenditure requirements into H2 2022.
• https://seekingalpha.com/news/3641958-syros-acquires-clinical-stage-candidate-for-12m-expects-90_5m-of-financing