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

Syndax Pharmaceuticals Inc’s (NASDAQ:SNDX): Syndax Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of therapies for various cancer indications. With the latest financial year loss of -US$60.80m and a trailing-twelve month of -US$67.23m, the US$212.47m market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on SNDX’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for SNDX.

View out our latest analysis for Syndax Pharmaceuticals

According to the industry analysts covering SNDX, breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$81.13m in 2022. SNDX is therefore projected to breakeven around a couple of months from now! In order to meet this breakeven date, I calculated the rate at which SNDX must grow year-on-year. It turns out an average annual growth rate of 28.67% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, SNDX may become profitable much later than analysts predict.

NasdaqGS:SNDX Past Future Earnings June 19th 18
NasdaqGS:SNDX Past Future Earnings June 19th 18

I’m not going to go through company-specific developments for SNDX given that this is a high-level summary, though, keep in mind 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.

One thing I’d like to point out is that SNDX has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. SNDX currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of SNDX which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at SNDX, take a look at SNDX’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should further research:

  1. Historical Track Record: What has SNDX’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  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 back ground.
  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.