0001564590-21-041169.txt : 20210805 0001564590-21-041169.hdr.sgml : 20210805 20210805071016 ACCESSION NUMBER: 0001564590-21-041169 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 80 CONFORMED PERIOD OF REPORT: 20210630 FILED AS OF DATE: 20210805 DATE AS OF CHANGE: 20210805 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Syros Pharmaceuticals, Inc. CENTRAL INDEX KEY: 0001556263 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 453772460 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-37813 FILM NUMBER: 211146273 BUSINESS ADDRESS: STREET 1: 35 CAMBRIDGE PARK DRIVE CITY: CAMBRIDGE STATE: MA ZIP: 02140 BUSINESS PHONE: 617-744-1340 MAIL ADDRESS: STREET 1: 35 CAMBRIDGE PARK DRIVE CITY: CAMBRIDGE STATE: MA ZIP: 02140 FORMER COMPANY: FORMER CONFORMED NAME: LS22, Inc. DATE OF NAME CHANGE: 20120815 10-Q 1 syrs-10q_20210630.htm 10-Q syrs-10q_20210630.htm
0001556263 false --12-31 2021 Q2 P2Y P15D true P6Y P1Y P9M P10Y P4Y P3Y P4Y5M8D P4Y11M8D P8Y8M1D P1Y10M6D P7Y2M12D P6Y10M25D P5Y9M18D P5Y10M20D P5Y5M26D P5Y11M26D P6Y29D 0001556263 2021-01-01 2021-06-30 xbrli:shares 0001556263 2021-07-31 iso4217:USD 0001556263 2021-06-30 0001556263 2020-12-31 iso4217:USD xbrli:shares 0001556263 2021-04-01 2021-06-30 0001556263 2020-04-01 2020-06-30 0001556263 2020-01-01 2020-06-30 0001556263 us-gaap:CommonStockMember 2019-12-31 0001556263 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001556263 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001556263 us-gaap:RetainedEarningsMember 2019-12-31 0001556263 2019-12-31 0001556263 us-gaap:CommonStockMember 2020-01-01 2020-06-30 0001556263 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0001556263 us-gaap:CommonStockMember syrs:AtTheMarketMember 2020-01-01 2020-06-30 0001556263 us-gaap:AdditionalPaidInCapitalMember syrs:AtTheMarketMember 2020-01-01 2020-06-30 0001556263 syrs:AtTheMarketMember 2020-01-01 2020-06-30 0001556263 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0001556263 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0001556263 us-gaap:CommonStockMember 2020-06-30 0001556263 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001556263 us-gaap:RetainedEarningsMember 2020-06-30 0001556263 2020-06-30 0001556263 us-gaap:CommonStockMember 2020-12-31 0001556263 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001556263 us-gaap:RetainedEarningsMember 2020-12-31 0001556263 us-gaap:CommonStockMember 2021-01-01 2021-06-30 0001556263 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-06-30 0001556263 us-gaap:CommonStockMember syrs:FollowOnOfferingMember 2021-01-01 2021-06-30 0001556263 us-gaap:AdditionalPaidInCapitalMember syrs:FollowOnOfferingMember 2021-01-01 2021-06-30 0001556263 syrs:FollowOnOfferingMember 2021-01-01 2021-06-30 0001556263 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0001556263 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0001556263 us-gaap:CommonStockMember 2021-06-30 0001556263 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001556263 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001556263 us-gaap:RetainedEarningsMember 2021-06-30 0001556263 us-gaap:CommonStockMember 2020-03-31 0001556263 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001556263 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001556263 us-gaap:RetainedEarningsMember 2020-03-31 0001556263 2020-03-31 0001556263 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001556263 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001556263 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001556263 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001556263 us-gaap:CommonStockMember 2021-03-31 0001556263 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001556263 us-gaap:RetainedEarningsMember 2021-03-31 0001556263 2021-03-31 0001556263 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001556263 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001556263 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001556263 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001556263 syrs:UnderwrittenPublicOfferingMember 2021-01-22 2021-01-22 0001556263 syrs:UnderwrittenPublicOfferingMember 2021-01-22 0001556263 2020-01-01 2020-12-31 0001556263 2019-01-01 2019-12-31 0001556263 2018-01-01 2018-12-31 syrs:segment 0001556263 srt:ExecutiveOfficerMember syrs:EmployeeStockOptionWithPerformanceConditionsMember 2021-01-01 2021-06-30 0001556263 syrs:PreFundedWarrantsMember us-gaap:PrivatePlacementMember 2021-06-30 0001556263 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001556263 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001556263 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001556263 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-06-30 0001556263 us-gaap:WarrantMember 2021-01-01 2021-06-30 0001556263 us-gaap:WarrantMember 2020-01-01 2020-06-30 0001556263 syrs:TermLoanAndSecurityAgreementMember 2021-06-30 0001556263 syrs:TermLoanAndSecurityAgreementMember 2020-06-30 0001556263 syrs:SecondDrawOfTermLoanAndSecurityAgreementMember 2021-06-30 0001556263 us-gaap:PrivatePlacementMember 2021-06-30 0001556263 syrs:GlobalBloodTherapeuticsMember us-gaap:CollaborativeArrangementMember 2019-12-17 2019-12-17 0001556263 syrs:GlobalBloodTherapeuticsMember us-gaap:CollaborativeArrangementMember srt:MaximumMember 2019-12-17 2019-12-17 0001556263 syrs:GlobalBloodTherapeuticsMember us-gaap:CollaborativeArrangementMember 2019-12-17 0001556263 syrs:GlobalBloodTherapeuticsMember us-gaap:CollaborativeArrangementMember srt:MaximumMember 2019-12-17 0001556263 syrs:GlobalBloodTherapeuticsMember us-gaap:CollaborativeArrangementMember 2021-01-01 2021-06-30 0001556263 syrs:GlobalBloodTherapeuticsMember us-gaap:CollaborativeArrangementMember 2021-04-01 2021-06-30 0001556263 syrs:GlobalBloodTherapeuticsMember us-gaap:CollaborativeArrangementMember 2020-04-01 2020-06-30 0001556263 syrs:GlobalBloodTherapeuticsMember us-gaap:CollaborativeArrangementMember 2020-01-01 2020-06-30 0001556263 syrs:GlobalBloodTherapeuticsMember us-gaap:CollaborativeArrangementMember 2021-06-30 0001556263 syrs:IncyteMember us-gaap:CollaborativeArrangementMember 2018-01-01 2018-01-31 0001556263 syrs:IncyteMember syrs:StockPurchaseAgreementMember 2018-01-01 2018-01-31 0001556263 syrs:IncyteMember syrs:StockPurchaseAgreementMember 2018-01-31 xbrli:pure 0001556263 syrs:IncyteMember us-gaap:CollaborativeArrangementMember 2018-01-08 2018-01-08 0001556263 syrs:IncyteMember us-gaap:CollaborativeArrangementMember 2019-11-01 2019-11-30 0001556263 syrs:IncyteMember us-gaap:CollaborativeArrangementMember 2021-01-01 2021-06-30 0001556263 syrs:IncyteMember 2021-04-01 2021-06-30 0001556263 syrs:IncyteMember 2021-01-01 2021-06-30 0001556263 syrs:IncyteMember 2020-04-01 2020-06-30 0001556263 syrs:IncyteMember 2020-01-01 2020-06-30 0001556263 syrs:IncyteMember 2021-06-30 0001556263 syrs:BilledReceivableMember 2020-12-31 0001556263 syrs:BilledReceivableMember 2021-01-01 2021-06-30 0001556263 syrs:UnbilledReceivableMember 2020-12-31 0001556263 syrs:UnbilledReceivableMember 2021-01-01 2021-06-30 0001556263 syrs:UnbilledReceivableMember 2021-06-30 0001556263 syrs:IncyteMember 2020-12-31 0001556263 syrs:GlobalBloodTherapeuticsMember 2020-12-31 0001556263 syrs:GlobalBloodTherapeuticsMember 2021-01-01 2021-06-30 0001556263 syrs:GlobalBloodTherapeuticsMember 2021-06-30 0001556263 syrs:CashAndMoneyMarketFundsMember 2021-06-30 0001556263 us-gaap:CashEquivalentsMember us-gaap:CorporateDebtSecuritiesMember 2021-06-30 0001556263 syrs:CorporateDebtSecuritiesCurrentMember 2021-06-30 0001556263 syrs:CorporateDebtSecuritiesNoncurrentMember 2021-06-30 0001556263 syrs:CashAndMoneyMarketFundsMember 2020-12-31 syrs:item syrs:Security 0001556263 us-gaap:CashMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueInputsLevel1Member us-gaap:CashMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:CorporateDebtSecuritiesMember us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember us-gaap:CashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 syrs:CorporateDebtSecuritiesCurrentMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueInputsLevel2Member syrs:CorporateDebtSecuritiesCurrentMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 syrs:CorporateDebtSecuritiesNoncurrentMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueInputsLevel2Member syrs:CorporateDebtSecuritiesNoncurrentMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:WarrantMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueInputsLevel3Member us-gaap:WarrantMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001556263 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember 2020-12-31 0001556263 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CashMember 2020-12-31 0001556263 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-12-31 0001556263 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-12-31 0001556263 us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001556263 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001556263 us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2020-12-31 0001556263 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2020-12-31 0001556263 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001556263 us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-06-30 0001556263 us-gaap:MeasurementInputRiskFreeInterestRateMember 2020-12-31 0001556263 us-gaap:MeasurementInputExpectedTermMember 2021-01-01 2021-06-30 0001556263 us-gaap:MeasurementInputExpectedTermMember 2020-01-01 2020-12-31 0001556263 us-gaap:MeasurementInputPriceVolatilityMember 2021-06-30 0001556263 us-gaap:MeasurementInputPriceVolatilityMember 2020-12-31 0001556263 us-gaap:FairValueInputsLevel3Member 2020-12-31 0001556263 us-gaap:FairValueInputsLevel3Member 2021-01-01 2021-06-30 0001556263 us-gaap:FairValueInputsLevel3Member 2021-06-30 0001556263 syrs:OperatingLeaseJanuary2019Member 2021-06-30 0001556263 syrs:OperatingLeaseJanuary2019Member 2021-01-01 2021-06-30 0001556263 syrs:OperatingLeaseOctober2023Member 2021-06-30 0001556263 syrs:TermLoanAndSecurityAgreementMember 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember syrs:FirstLoanTrancheMember 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember syrs:SecondLoanTrancheMember 2020-12-23 0001556263 syrs:TermLoanAndSecurityAgreementMember 2020-02-12 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember syrs:ThirdLoanTrancheMember 2020-02-12 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember us-gaap:DebtInstrumentRedemptionPeriodOneMember 2020-02-12 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember us-gaap:DebtInstrumentRedemptionPeriodTwoMember 2020-02-12 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember us-gaap:DebtInstrumentRedemptionPeriodThreeMember 2020-02-12 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember 2021-01-01 2021-06-30 0001556263 syrs:TermLoanAndSecurityAgreementMember syrs:FirstLoanTrancheMember 2020-02-12 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember syrs:SecondLoanTrancheMember 2020-12-22 2020-12-23 0001556263 syrs:TermLoanAndSecurityAgreementMember us-gaap:MeasurementInputPriceVolatilityMember srt:WeightedAverageMember syrs:FirstLoanTrancheMember 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember us-gaap:MeasurementInputPriceVolatilityMember srt:WeightedAverageMember syrs:SecondLoanTrancheMember 2020-12-23 0001556263 syrs:TermLoanAndSecurityAgreementMember us-gaap:MeasurementInputExpectedTermMember srt:WeightedAverageMember syrs:FirstLoanTrancheMember 2020-02-12 0001556263 syrs:TermLoanAndSecurityAgreementMember us-gaap:MeasurementInputExpectedTermMember srt:WeightedAverageMember syrs:SecondLoanTrancheMember 2020-12-23 0001556263 syrs:TermLoanAndSecurityAgreementMember 2021-04-01 2021-06-30 0001556263 syrs:TermLoanAndSecurityAgreementMember 2020-04-01 2020-06-30 0001556263 syrs:TermLoanAndSecurityAgreementMember 2020-01-01 2020-06-30 utr:sqft 0001556263 syrs:OperatingLeaseJanuary2019Member 2019-01-08 2019-01-08 0001556263 us-gaap:AccountingStandardsUpdate201602Member 2021-06-30 0001556263 us-gaap:AccountingStandardsUpdate201602Member syrs:OperatingLeaseJanuary2019Member 2021-06-30 0001556263 us-gaap:AccountingStandardsUpdate201602Member 2021-01-01 2021-06-30 0001556263 2019-03-31 0001556263 syrs:OrsenixLLCMember syrs:AssetPurchaseAgreementMember 2020-12-04 2020-12-04 0001556263 syrs:OrsenixLLCMember syrs:AssetPurchaseAgreementMember 2020-12-04 0001556263 syrs:TMRCMember 2015-09-01 2015-09-30 0001556263 syrs:TMRCMember 2016-05-01 2016-05-31 0001556263 syrs:TMRCMember 2015-09-30 0001556263 syrs:TMRCMember 2016-09-01 2016-09-30 0001556263 syrs:TMRCMember 2021-05-01 2021-05-31 0001556263 syrs:TMRCMember 2021-04-01 2021-06-30 0001556263 syrs:TMRCMember 2021-01-01 2021-06-30 0001556263 syrs:TMRCMember 2020-04-01 2020-06-30 0001556263 syrs:TMRCMember 2020-01-01 2020-06-30 0001556263 us-gaap:PrivatePlacementMember us-gaap:CommonStockMember 2020-12-08 2020-12-08 0001556263 us-gaap:PrivatePlacementMember syrs:PreFundedWarrantsMember 2020-12-08 0001556263 us-gaap:PrivatePlacementMember us-gaap:WarrantMember srt:MaximumMember 2020-12-08 0001556263 us-gaap:PrivatePlacementMember us-gaap:WarrantMember 2020-12-08 0001556263 us-gaap:PrivatePlacementMember 2020-12-08 2020-12-08 0001556263 us-gaap:PrivatePlacementMember 2021-01-01 2021-06-30 0001556263 us-gaap:PrivatePlacementMember 2020-12-31 syrs:Agreement 0001556263 2019-04-09 2019-04-09 0001556263 syrs:PublicOfferingMember us-gaap:CommonStockMember syrs:FirstUnderwritingAgreementMember 2019-04-09 2019-04-09 0001556263 syrs:PublicOfferingMember syrs:FirstUnderwritingAgreementMember syrs:ClassAWarrantsMember 2019-04-09 0001556263 syrs:PublicOfferingMember syrs:SecondUnderwritingAgreementMember us-gaap:ConvertiblePreferredStockMember 2019-04-09 2019-04-09 0001556263 syrs:PublicOfferingMember syrs:SecondUnderwritingAgreementMember syrs:ClassAWarrantsMember 2019-04-09 0001556263 2019-04-09 0001556263 us-gaap:ConvertiblePreferredStockMember 2019-11-30 0001556263 us-gaap:ConvertiblePreferredStockMember us-gaap:CommonStockMember 2019-11-30 0001556263 us-gaap:ConvertiblePreferredStockMember 2021-06-30 0001556263 syrs:ClassAWarrantsMember 2021-06-30 0001556263 syrs:ClassAWarrantsMember 2021-01-01 2021-06-30 0001556263 us-gaap:MeasurementInputPriceVolatilityMember srt:WeightedAverageMember syrs:ClassAWarrantsMember 2021-01-01 2021-06-30 0001556263 us-gaap:MeasurementInputExpectedDividendRateMember srt:WeightedAverageMember syrs:ClassAWarrantsMember 2021-01-01 2021-06-30 0001556263 syrs:StockIncentivePlan2016Member 2021-06-30 0001556263 syrs:StockIncentivePlan2016Member 2021-01-01 2021-06-30 0001556263 syrs:StockIncentivePlan2016Member 2021-01-01 2021-01-01 0001556263 syrs:EmployeeStockPurchasePlan2016Member 2016-07-06 0001556263 syrs:EmployeeStockPurchasePlan2016Member 2016-07-05 2016-07-06 0001556263 syrs:EmployeeStockPurchasePlan2016Member 2021-01-01 2021-01-01 0001556263 syrs:EmployeeStockPurchasePlan2016Member 2021-06-30 0001556263 syrs:StockIncentivePlan2016Member syrs:EmployeeAndOthersStockOptionMember 2021-01-01 2021-06-30 0001556263 syrs:StockIncentivePlan2016Member syrs:CliffVestingMember syrs:EmployeeAndOthersStockOptionMember 2021-01-01 2021-06-30 0001556263 syrs:StockIncentivePlan2016Member syrs:GradedVestingMember syrs:EmployeeAndOthersStockOptionMember 2021-01-01 2021-06-30 0001556263 syrs:EmployeeStockOptionWithPerformanceConditionsMember syrs:AdvisorMember 2021-06-30 0001556263 syrs:EmployeeStockOptionWithPerformanceConditionsMember syrs:AdvisorMember 2021-01-01 2021-06-30 0001556263 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001556263 us-gaap:RestrictedStockUnitsRSUMember srt:ExecutiveOfficerMember 2021-01-01 2021-06-30 0001556263 us-gaap:RestrictedStockUnitsRSUMember 2020-12-31 0001556263 us-gaap:RestrictedStockUnitsRSUMember 2021-06-30 0001556263 syrs:EmployeeAndOthersStockOptionMember 2021-04-01 2021-06-30 0001556263 syrs:EmployeeAndOthersStockOptionMember 2020-04-01 2020-06-30 0001556263 syrs:EmployeeAndOthersStockOptionMember 2021-01-01 2021-06-30 0001556263 syrs:EmployeeAndOthersStockOptionMember 2020-01-01 2020-06-30 0001556263 us-gaap:ResearchAndDevelopmentExpenseMember 2021-04-01 2021-06-30 0001556263 us-gaap:ResearchAndDevelopmentExpenseMember 2020-04-01 2020-06-30 0001556263 us-gaap:ResearchAndDevelopmentExpenseMember 2021-01-01 2021-06-30 0001556263 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-06-30 0001556263 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-04-01 2021-06-30 0001556263 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-04-01 2020-06-30 0001556263 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-01-01 2021-06-30 0001556263 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-06-30

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-37813

SYROS PHARMACEUTICALS, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

 

45-3772460

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

35 CambridgePark Drive, 4th Floor

Cambridge, Massachusetts

 

02140

(Address of Principal Executive Offices)

 

(Zip Code)

(617744-1340

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered

Common Stock, $0.001 par value

 

SYRS

 

Nasdaq Global Select Market

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

 

Accelerated filer

Non-accelerated filer

 

 

 

 

Smaller reporting company

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No

Number of shares of the registrant’s common stock, $0.001 par value, outstanding on July 31, 2021: 61,930,800

 

 

 

 


 

 

TABLE OF CONTENTS

 

 

Page

Part I – FINANCIAL INFORMATION

 

 

Item 1.    Financial Statements (unaudited)

5

 

 

Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020

5

Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2021 and 2020

6

Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2021 and 2020

7

Condensed Consolidated Statements of Stockholder’s Equity for the Three and Six Months Ended June 30, 2021 and 2020

8

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020

10

Notes to Condensed Consolidated Financial Statements

11

 

 

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

30

 

 

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

43

 

 

Item 4.    Controls and Procedures

43

 

 

Part II – OTHER INFORMATION

 

 

Item 1A. Risk Factors

44

 

 

Item 5.    Other Information

46

 

 

Item 6.    Exhibits

48

 

 

Signatures

49

 

2


 

 

Cautionary Note Regarding Forward-Looking Statements and Industry Data

 

This Quarterly Report on Form 10-Q, or Quarterly Report, contains forward‑looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this Quarterly Report, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management and expected market growth are forward‑looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “would” and similar expressions are intended to identify forward‑looking statements, although not all forward‑looking statements contain these identifying words. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. The forward‑looking statements and opinions contained in this Quarterly Report are based upon information available to us as of the date of this Quarterly Report and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.

 

These forward‑looking statements include, among other things, statements about:

 

our plans to initiate and expand clinical trials of our product candidates and our expectations for the timing, quantity and quality of information to be reported from our clinical trials of tamibarotene (formerly known as SY‑1425), SY-2101 and SY‑5609;

 

planned clinical trials for our product candidates, whether conducted by us or by any future collaborators, including the timing of these trials and of the anticipated results;

 

our ability to discover and develop compounds suitable for clinical development and the timing for designation of future development candidates;

 

our ability to replicate in any clinical trial of one of our product candidates the results we observed in preclinical or earlier clinical studies of such product candidate;

 

our plans to research, develop, seek approval for, manufacture and commercialize our current and future product candidates;

 

our plans to develop and seek approval of companion diagnostic tests for use in identifying patients who may benefit from treatment with our products and product candidates;

 

our expectations regarding the potential benefits of our gene control platform and our approach;

 

our ability to enter into, and the terms and timing of, any collaborations, license agreements, or other arrangements;

 

whether a drug candidate will be nominated to enter investigational new drug application-enabling studies under our sickle cell disease collaboration with Global Blood Therapeutics, Inc., or GBT, whether GBT will exercise its option to exclusively license intellectual property arising from the collaboration, whether and when any option exercise fees, milestone payments or royalties under the collaboration agreement with GBT will ever be paid, and whether we exercise our U.S. co-promotion option under the GBT agreement;

 

whether our target discovery collaboration with Incyte Corporation, or Incyte, will yield any validated targets, whether Incyte will exercise any of its options to exclusively license intellectual property directed to such targets, and whether and when any of the target validation fees, option exercise fees, milestone payments or royalties under the Incyte collaboration will ever be paid;

 

the potential benefits of any future collaboration;

 

developments relating to our competitors and our industry;

 

the impact of government laws and regulations;

3


 

 

 

the timing of and our ability to file new drug applications and obtain and maintain regulatory approvals for our product candidates;

 

the rate and degree of market acceptance and clinical utility of any products for which we receive marketing approval;

 

our commercialization, marketing and manufacturing capabilities and strategy;

 

our intellectual property position and strategy;

 

our ability to identify additional products or product candidates with significant commercial potential;

 

our expectations related to the use of our current cash and cash equivalents and the period of time in which such capital will be sufficient to fund our planned operations; and

 

our estimates regarding expenses, future revenue, capital requirements and need for additional financing.

We may not actually achieve the plans, intentions or expectations disclosed in our forward‑looking statements, and you should not place undue reliance on our forward‑looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward‑looking statements we make. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward‑looking statements contained in this Quarterly Report. We have included important factors in the cautionary statements included in this Quarterly Report, particularly in the “Risk Factors” section, that could cause actual results or events to differ materially from the forward‑looking statements that we make. In particular, the extent to which the COVID-19 pandemic continues to impact our operations and those of the third parties on which we rely will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration and severity of the pandemic, additional or modified government actions, and the actions that may be required to contain the virus or treat its impact. The COVID-19 pandemic has and may continue to adversely impact our operations and workforce, including our discovery research, supply chain and clinical trial operations activities, which in turn could have an adverse impact on our business and financial results.

 

Our forward‑looking statements also do not reflect the potential impact of any future acquisitions, mergers, dispositions, collaborations, joint ventures or investments that we may make or enter into.

 

This report also includes statistical and other industry and market data that we obtained from industry publications and research, surveys, and studies conducted by third parties as well as our own estimates. All of the market data used in this report involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such data. Industry publications and third-party research, surveys, and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. Our estimates of the potential market opportunities for our drug candidates include several key assumptions based on our industry knowledge, industry publications, third-party research, and other surveys, which may be based on a small sample size and may fail to accurately reflect market opportunities. While we believe that our internal assumptions are reasonable, no independent source has verified such assumptions.

 

You should read this Quarterly Report completely and with the understanding that our actual future results may be materially different from what we expect. We do not assume any obligation to update any forward‑looking statements, whether as a result of new information, future events or otherwise, except as required by law.

4


 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

SYROS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

160,915

 

 

$

173,984

 

Marketable securities

 

 

21,114

 

 

 

 

Accounts receivable

 

 

 

 

 

7

 

Contract assets

 

 

2,177

 

 

 

2,324

 

Prepaid expenses and other current assets

 

 

2,001

 

 

 

2,242

 

Total current assets

 

 

186,207

 

 

 

178,557

 

Property and equipment, net

 

 

13,784

 

 

 

14,213

 

Marketable securities - noncurrent

 

 

13,264

 

 

 

 

Other long-term assets

 

 

2,442

 

 

 

1,966

 

Restricted cash

 

 

3,086

 

 

 

3,086

 

Right-of-use asset – operating lease

 

 

14,484

 

 

 

14,831

 

Right-of-use assets – financing leases

 

 

467

 

 

 

597

 

Total assets

 

$

233,734

 

 

$

213,250

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,671

 

 

$

3,603

 

Accrued expenses

 

 

9,963

 

 

 

11,084

 

Deferred revenue, current portion

 

 

12,123

 

 

 

12,209

 

Financing lease obligations, current portion

 

 

278

 

 

 

265

 

Operating lease obligation, current portion

 

 

1,588

 

 

 

1,463

 

Total current liabilities

 

 

27,623

 

 

 

28,624

 

Deferred revenue, net of current portion

 

 

4,851

 

 

 

9,877

 

Financing lease obligations, net of current portion

 

 

214

 

 

 

356

 

Operating lease obligation, net of current portion

 

 

23,747

 

 

 

24,578

 

Warrant liability

 

 

7,430

 

 

 

19,711

 

Debt, net of debt discount, long term

 

 

39,892

 

 

 

39,551

 

Commitments and contingencies (See Note 9)

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 10,000,000 shares authorized at June 30, 2021 and December 31, 2020; 0 shares issued and outstanding at June 30, 2021 and December 31, 2020

 

 

 

 

 

 

Common stock, $0.001 par value; 200,000,000 shares authorized at June 30, 2021 and December 31, 2020; 61,920,250 and 56,222,746 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

 

 

61

 

 

 

56

 

Additional paid-in capital

 

 

543,674

 

 

 

467,518

 

Accumulated other comprehensive loss

 

 

(19

)

 

 

 

Accumulated deficit

 

 

(413,739

)

 

 

(377,021

)

Total stockholders' equity

 

 

129,977

 

 

 

90,553

 

Total liabilities and stockholders' equity

 

$

233,734

 

 

$

213,250

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

5


 

SYROS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

5,162

 

 

$

3,188

 

 

$

9,989

 

 

$

5,566

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

25,786

 

 

 

14,796

 

 

 

45,815

 

 

 

29,365

 

General and administrative

 

 

5,520

 

 

 

5,133

 

 

 

11,260

 

 

 

10,282

 

Total operating expenses

 

 

31,306

 

 

 

19,929

 

 

 

57,075

 

 

 

39,647

 

Loss from operations

 

 

(26,144

)

 

 

(16,741

)

 

 

(47,086

)

 

 

(34,081

)

Interest income

 

 

12

 

 

 

32

 

 

 

24

 

 

 

416

 

Interest expense

 

 

(969

)

 

 

(487

)

 

 

(1,937

)

 

 

(757

)

Change in fair value of warrant liability

 

 

4,611

 

 

 

 

 

 

12,281

 

 

 

 

Net loss applicable to common stockholders

 

$

(22,490

)

 

$

(17,196

)

 

$

(36,718

)

 

$

(34,422

)

Net loss per share applicable to common stockholders - basic and diluted

 

$

(0.36

)

 

$

(0.38

)

 

$

(0.59

)

 

$

(0.77

)

Weighted-average number of common shares used in net loss per share applicable to common stockholders - basic and diluted

 

 

62,859,500

 

 

 

45,699,277

 

 

 

62,123,658

 

 

 

44,811,638

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

6


 

 

SYROS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net loss

 

$

(22,490

)

 

$

(17,196

)

 

$

(36,718

)

 

$

(34,422

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding loss on marketable securities

 

 

(19

)

 

 

(3

)

 

 

(19

)

 

 

(24

)

Comprehensive loss

 

$

(22,509

)

 

$

(17,199

)

 

$

(36,737

)

 

$

(34,446

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 

7


 

 

SYROS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

For the six months ended June 30, 2021 and 2020

(in thousands, except share data)

(unaudited)

 

 

Common Stock

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Number of

 

 

Par

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Value

 

 

Capital

 

 

Gain (Loss)

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2019

 

 

43,367,801

 

 

$

43

 

 

$

372,100

 

 

$

24

 

 

$

(292,983

)

 

$

79,184

 

Exercise of stock options

 

 

49,100

 

 

 

 

 

 

212

 

 

 

 

 

 

 

 

 

212

 

Vesting of restricted stock units

 

 

103,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of shares under Employee Stock Purchase Plan

 

 

36,708

 

 

 

 

 

 

223

 

 

 

 

 

 

 

 

 

223

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

5,186

 

 

 

 

 

 

 

 

 

5,186

 

Issuance of common stock at-the-market, net of issuance costs of $411

 

 

2,201,810

 

 

 

2

 

 

 

11,917

 

 

 

 

 

 

 

 

 

11,919

 

Issuance of warrants

 

 

 

 

 

 

 

 

128

 

 

 

 

 

 

 

 

 

128

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(24

)

 

 

 

 

 

(24

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,422

)

 

 

(34,422

)

Balance at June 30, 2020

 

 

45,758,881

 

 

$

45

 

 

$

389,766

 

 

$

 

 

$

(327,405

)

 

$

62,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2020

 

 

56,222,746

 

 

$

56

 

 

$

467,518

 

 

$

 

 

$

(377,021

)

 

$

90,553

 

Exercise of stock options

 

 

20,134

 

 

 

 

 

 

157

 

 

 

 

 

 

 

 

 

157

 

Vesting of restricted stock units

 

 

244,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of shares under Employee Stock Purchase Plan

 

 

33,058

 

 

 

 

 

 

153

 

 

 

 

 

 

 

 

 

153

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

5,383

 

 

 

 

 

 

 

 

 

5,383

 

Issuance of common stock in underwritten public offering, net of issuance costs of $5,132

 

 

5,400,000

 

 

 

5

 

 

 

70,463

 

 

 

 

 

 

 

 

 

70,468

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

 

 

 

(19

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36,718

)

 

 

(36,718

)

Balance at June 30, 2021

 

 

61,920,250

 

 

$

61

 

 

$

543,674

 

 

$

(19

)

 

$

(413,739

)

 

$

129,977

 

 

8


 

 

SYROS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

For the three months ended June 30, 2021

(in thousands, except share data)

(unaudited)

 

 

 

Common Stock

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Number of

 

 

Par

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Value

 

 

Capital

 

 

Gain (Loss)

 

 

Deficit

 

 

Equity

 

Balance at March 31, 2020

 

 

45,690,718

 

 

$

45

 

 

$

386,704

 

 

$

3

 

 

$

(310,209

)

 

$

76,543

 

Exercise of stock options

 

 

18,505

 

 

 

 

 

 

112

 

 

 

 

 

 

 

 

 

112

 

Vesting of restricted stock units

 

 

12,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of shares under Employee Stock Purchase Plan

 

 

36,708

 

 

 

 

 

 

223

 

 

 

 

 

 

 

 

 

223

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

2,727

 

 

 

 

 

 

 

 

 

2,727

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

(3

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,196

)

 

 

(17,196

)

Balance at June 30, 2020

 

 

45,758,881

 

 

$

45

 

 

$

389,766

 

 

$

-

 

 

$

(327,405

)

 

$

62,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2021

 

 

61,849,642

 

 

$

61

 

 

$

541,068

 

 

$

 

 

$

(391,249

)

 

$

149,880

 

Vesting of restricted stock units

 

 

37,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of shares under Employee Stock Purchase Plan

 

 

33,058

 

 

 

 

 

 

153

 

 

 

 

 

 

 

 

 

153

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

2,453

 

 

 

 

 

 

 

 

 

2,453

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

 

 

 

(19

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,490

)

 

 

(22,490

)

Balance at June 30, 2021

 

 

61,920,250

 

 

$

61

 

 

$

543,674

 

 

$

(19

)

 

$

(413,739

)

 

$

129,977

 

 

 

 

9


 

 

SYROS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2021

 

 

2020

 

Operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(36,718

)

 

$

(34,422

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,350

 

 

 

1,370

 

Amortization of right-of-use asset

 

 

130

 

 

 

130

 

Stock-based compensation expense

 

 

5,383

 

 

 

5,186

 

Change in fair value of warrant liability

 

 

(12,281

)

 

 

 

Net amortization of premiums and discounts on marketable securities

 

 

20

 

 

 

(49

)

Amortization of debt-discount and accretion of deferred debt costs

 

 

341

 

 

 

117

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

241

 

 

 

376

 

Accounts receivable

 

 

7

 

 

 

19,998

 

Contract assets