Syndax Pharmaceuticals Inc (NASDAQ: SNDX) was one of the big gainers in Friday’s session. This followed the company’s announcement that it was offering $35 million in common stock, and also entering into a loan agreement with Hercules Capital for $30 million.
The common stock deal is with a group of investors consisting of AI Life Sciences Investments LLC, Biotechnology Value Fund, L.P., and Access Industries Inc. The company will sell the shares at $8 per share, representing a premium of 20% of the company’s share value on Thursday’s close. It anticipates to generate $35 million in gross gains from this deal, and the transaction will come to a close on the 4th of February.
A day earlier, the company had announced that, Science Magazine had published its preclinical report on the potential role of MLL1-Menin Inhibition in managing nucleophosmin mutant myeloid leukemia. The study is about the functionality of VTP-50469, an oral inhibitor of MLL1-Menin when it interacts with the company’s SNDX-5613, a top Menin inhibitor in treating NPM1 AML. According to the article, the authors found that, the presence of a mutation of NPM1 was an indicator of pre-leukemia activity, a major step in developing AML. On top of that, they found that, VTP-50469 could get rid of NPM1 mutant cells at different stages of the disease.
Commenting on these developments, the CEO stated that, NPM1 mutant AML is one of the most common types of cytogenically normal AML. He added that, the findings were an addition to the company’s growing body of preclinical data in support of SDNX-5613 as a treatment for MLL-r acute leukemia and NPM1 mutant AML.
Looking at its price action, the stock gapped up and opened the day at $8.17. It then traded between a low of $7.80 and a high of $10.39, before closing the day at $9.38. Volumes in the day stood at 2.91 million.
About Syndax Pharmaceuticals Inc
Syndax Pharmaceuticals Inc is a biopharma company that develops cancer treatments. It is based in Waltham, Massachusetts.