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    Syndax Pharmaceuticals (SNDX) Stock Dropped, So What Is Behind The Move?

    Simply Wall St·10/14/2026 14:28:30
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    Syndax Pharmaceuticals (SNDX) is back in focus after the company reported that its MAXPIRe Phase 2 trial of axatilimab in idiopathic pulmonary fibrosis missed its primary endpoint, and development in this indication will stop.

    The failed IPF trial has quickly fed into trading in Syndax Pharmaceuticals, with the share price falling 15.7% on the day of the announcement and sliding 40.7% over 90 days. The 1 year total shareholder return is down 8.9%, while the 3 year total shareholder return remains positive at 12.9%. This suggests that shorter term momentum has weakened, even as longer holding periods show a mixed picture.

    Capitalize on the volatility around Syndax Pharmaceuticals by reviewing a curated 32 high quality undervalued stocks that combine resilient cash flows with balance sheets built to handle clinical hits and misses.

    Syndax Pharmaceuticals now looks like a stronger, more focused biotech after shelving IPF, yet the share price has dropped sharply. Are investors paying a fair price for what is left of the story?

    Most Popular Narrative: 65% Undervalued

    The most followed narrative pegs Syndax Pharmaceuticals at a fair value of $39.50, well above the last close of $13.95. This frames the recent pullback as a valuation gap driven more by shifting expectations than by a full reset of the business case.

    Fixed operating expense base, together with expanding product sales and cash flow contributions from both franchises, is positioned to drive significant operating leverage, boosting net margins and accelerating the pathway to profitability. Late-stage pipeline advancements (including frontline trials, lifecycle management, and expansion into new indications like IPF for Niktimvo), coupled with strong clinical data and market-leading positions in precision oncology, provide robust long-term growth avenues aligned with surging demand for targeted therapies, supporting multi-year earnings momentum.

    See why 14 investors see Syndax Pharmaceuticals as 65% undervalued.

    The narrative uses a discount rate of 7.46% and arrives at the $39.50 figure, which implies a 64.7% discount to fair value at current pricing. Analysts in this framework are working with revenue forecasts that point to 28.9% annual top line growth and earnings rising 69.56% a year, together with an eventual profit margin of 14.7%.

    This storyline also leans on expectations that Syndax Pharmaceuticals can transition from losses, currently reflected in a net income shortfall of $220.8 million, to future profitability over the next three years. That assumption sits alongside a view that the stock trades well below an estimated future cash flow value of $146.51, which is where the DCF-based argument for SNDX being heavily undervalued comes in.

    Investors weighing this popular view still need to factor in the concentration risk around Revuforj and Niktimvo, the mixed track record across trials, and the lack of analyst agreement flagged in the forecasts. The valuation case rests on those late stage oncology assets eventually justifying a richer multiple than the broader US Biotechs industry, even as recent performance has lagged the sector and the wider US market.

    Result: Fair Value of $39.50 (UNDERVALUED)

    Still, the story around Syndax Pharmaceuticals can change quickly if Revuforj or Niktimvo encounter regulatory setbacks or face tougher than expected commercial adoption.

    Find out about the key risks to this Syndax Pharmaceuticals narrative.

    Next Steps

    Sentiment around Syndax Pharmaceuticals is clearly split, which is why you should move quickly and test the thesis against your own framework. To see what optimists are focusing on, start with the 2 key rewards.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.