SCYX - Scynexis: Update Following Restructuring Of GSK Deal

2024-04-02 10:04:00 ET

Summary

• Scynexis stock price has resumed the downtrend following a restructuring of the GSK deal associated with considerable reduction of pending milestones.
• SCYX ended 2023 with $98M, but is still trading at a $54M market cap. Cash runway is beyond 2 years, not accounting for pending milestones.
• Just the milestones from delivery of readouts to GSK and resumption and progress of MARIO trial are expected to cover all 2024 operating expenses.
• SCYX stock is undervalued in the short/medium term, but its long-term success is unclear considering emerging competition and pipeline limited to SCY-247.

Thesis overview

In my last coverage , I recommended buying Scynexis (SCYX) based on a 2-year cash runway, GSK (GSK) partnership associated with significant pending milestone payments and future potential of SCY-247. Stock price was doing well until a re-structuring of the GSK deal was announced, associated with considerable reduction of pending milestones. As a result, the downtrend has resumed....

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