When Will Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) Turn A Profit?

We feel now is a pretty good time to analyse Syndax Pharmaceuticals, Inc.'s (NASDAQ:SNDX) business as it appears the company may be on the cusp of a considerable accomplishment. Syndax Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, develops therapies for the treatment of cancer. With the latest financial year loss of US$319m and a trailing-twelve-month loss of US$335m, the US$1.4b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Syndax Pharmaceuticals' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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According to the 10 industry analysts covering Syndax Pharmaceuticals, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$11m in 2027. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 71% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Syndax Pharmaceuticals' growth isn’t the focus of this broad overview, though, take into account that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

View our latest analysis for Syndax Pharmaceuticals

One thing we would like to bring into light with Syndax Pharmaceuticals is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Syndax Pharmaceuticals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Syndax Pharmaceuticals, take a look at Syndax Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Valuation: What is Syndax Pharmaceuticals worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Syndax Pharmaceuticals is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Syndax Pharmaceuticals’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.