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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.

Syros Pharmaceuticals  (SYRS) - Get Report 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. 

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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) - Get Report liquidated its position in the company, selling about 3.6 million shares.

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