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Syros Pharma Skyrockets on Oppenheimer Buy Rating

Syros Pharmaceuticals is upgraded due to development of its blood and bone marrow treatment.
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Syros Pharmaceuticals  (SYRS) jumped after an Oppenheimer analyst assigned a buy rating to the biopharma .

Shares of the Cambridge, Mass. company were surging 21% to $6.76 at last check.

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Analyst Mark Breidenbach, who also has a share price target of $13,on the stock, said the company hosted a webinar on the treatment for high-risk Myelodysplastic Syndrome (HR-MDS).

Myelodysplastic Syndrome is a group of diseases that affect the blood and bone marrow.

Breidenbach said the company is developing SY-1425 for MDS and acute myeloid leukemia (AML) patients. 

The event featured commentary from Dr. Amy DeZern from Johns Hopkins, Breidenbach said in a research note, who underscored the need for novel therapeutics that balance improved survival without diminishing quality of life.

"Dr. DeZern advocated for pathway-targeting approaches that may address multiple drivers of a polyclonal disease like MDS, suggesting they may hold more promise than onesize-fits-all strategies which carry tolerability baggage." the analyst said.

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Breidenbach said his valuation includes contributions from SY-1425 in two settings: newly diagnosed RARA+ (retinoic acid receptor alpha) patients who are unfit for standard induction chemotherapy and RARA+ patients with higher-risk MDS. 

"We estimate SY-1425 could launch in 2024 for both settings, generating $425 million in peak sales for AML and $350 million in MDS," he wrote, "assuming high penetration into biomarker selected market. Our valuation also includes contribution from SY-5609 in r/r ovarian cancer, where we model a 2024 launch with $1.1 billion in peak sales."

The rating comes one day after Cathie Wood's ARK Innovation ETF  (ARKK)  liquidated its position in the company, selling about 3.6 million shares.

Last week, Wood added more than 69,500 shares of Tesla  (TSLA)  to the Ark Investment portfolio. In April, ARK Investment Management bought shares of the e-sports platform Skillz  (SKLZ) .