Pfizer To Terminate Development Pact With Syros Pharmaceuticals For Novel Therapies For Two Blood Disorders

Syros Pharmaceuticals Inc received notice from Pfizer Inc PFE, as successor to Global Blood Therapeutics Inc, exercising its right to terminate the License and Collaboration Agreement dated December 17, 2019, related to the discovery, development, and commercialization of novel therapies for sickle cell disease and beta-thalassemia. 

The effective termination date of the Agreement is October 16, 2023, the company said in an SEC filing.

The termination will end the company's more than three-year-long collaboration with sickle cell disease drugmaker Global Blood Therapeutics, which Pfizer bought in a $5.4 billion deal last August.

Syros "intends to seek to identify a new out-licensing partner for its sickle cell disease program," it added.

Under the terms of the agreement, Syros granted GBT an option to obtain an exclusive, worldwide license, with the right to sublicense, under relevant intellectual property rights and know-how of the company arising from the collaboration to develop, manufacture and commercialize any compounds or products resulting from the collaboration.

In addition, the agreement requires GBT to reimburse the company for full-time employees and out-of-pocket costs and expenses incurred by the company per the agreed-upon research budget through the effective termination date.

GBT previously made an upfront payment of $20.0 million.

Syros was eligible to receive up to $315 million in option exercise, development, regulatory, commercialization, and sales-based milestones per product candidate and product resulting from the collaboration, along with tiered mid-to-high single-digit royalties as percentages of calendar year net sales on any licensed product.

Price Action: SYRS shares closed at $3.50 on Friday.