Syros Announces $35 Million Private Placement

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Syros Pharmaceuticals (NASDAQ:SYRS), a biopharmaceutical company
pioneering the discovery and development of medicines to control the
expression of disease-driving genes, announced today that it has entered
into a stock purchase agreement with several institutional accredited
investors for the private placement of 2,592,591 shares of common stock
at a purchase price of $13.50 per share, yielding expected gross
proceeds of $35 million. The purchase price for the shares represents an
8.8% discount to the average closing price of the Company’s common stock
over the 30 trading days prior to the entry into the stock purchase
agreement. The private placement is expected to close on or about April
26, 2017, subject to the satisfaction of customary closing conditions.

The private placement was anchored by Samsara BioCapital, a new biotech
investment firm founded by Srini Akkaraju, M.D., Ph.D., alongside a
number of existing and new institutional investors. J.P. Morgan
Securities LLC and Cowen and Company, LLC acted as placement agents to
the Company in connection with the offering.

Net proceeds from this offering are expected to be used to advance the
Company’s research and development programs, including the clinical
development of SY-1425 in genomically defined subsets of patients with
acute myeloid leukemia and myelodysplastic syndrome, and the planned
Phase 1 clinical trial of SY-1365 in patients with advanced solid tumors.

The securities to be sold in the private placement have not been
registered under the Securities Act of 1933, as amended (the “Securities
Act”), or any state or other applicable jurisdiction’s securities laws,
and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of the
Securities Act and applicable state or other jurisdictions’ securities
laws. The Company has agreed to file a registration statement with the
U.S. Securities and Exchange Commission registering the resale of the
shares of common stock to be issued and sold in the private placement no
later than the 30th day after the closing of the offering. Any offering
of the securities under the resale registration statement will only be
by means of a prospectus.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there be any
offer, solicitation or sale of these securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful.

About Syros Pharmaceuticals
Syros Pharmaceuticals is
pioneering the understanding of the non-coding region of the genome to
advance a new wave of medicines that control expression of
disease-driving genes. Syros has built a proprietary platform that is
designed to systematically and efficiently analyze this unexploited
region of DNA in human disease tissue to identify and drug novel targets
linked to genomically defined patient populations. Because gene
expression is fundamental to the function of all cells, Syros’ gene
control platform has broad potential to create medicines that achieve
profound and durable benefit across a range of diseases. Syros is
currently focused on cancer and immune-mediated diseases and is
advancing a growing pipeline of gene control medicines. Syros’ lead drug
candidates are SY-1425, a selective RARα agonist in a Phase 2 clinical
trial for genomically defined subsets of patients with acute myeloid
leukemia and myelodysplastic syndrome, and SY-1365, a selective CDK7
inhibitor with potential in a range of solid tumors and blood cancers.
Led by a team with deep experience in drug discovery, development and
commercialization, Syros is located in Cambridge, Mass.

Cautionary Note Regarding Forward-Looking Statements
This
press release contains forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995, including without
limitation statements regarding the use of proceeds from the private
placement, the filing of a registration statement to register the resale
of the shares to be issued and sold in the private placement, and the
benefits of Syros’ gene control platform. The words ‘‘anticipate,’’
‘‘believe,’’ ‘‘continue,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’
‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘predict,’’ ‘‘project,’’
‘‘target,’’ ‘‘should,’’ ‘‘would,’’ and similar expressions are intended
to identify forward-looking statements, although not all forward-looking
statements contain these identifying words. Actual results or events
could differ materially from the plans, intentions and expectations
disclosed in these forward-looking statements as a result of various
important factors, including: Syros’ ability to: advance the development
of its programs, including SY-1425 and SY-1365, under the timelines it
projects in current and future clinical trials; obtain and maintain
patent protection for its drug candidates and the freedom to operate
under third party intellectual property; demonstrate in any current and
future clinical trials the requisite safety, efficacy and combinability
of its drug candidates; replicate scientific and non-clinical data in
clinical trials; successfully develop a companion diagnostic test to
identify patients with biomarkers associated with the RARA
super-enhancer; obtain and maintain necessary regulatory approvals;
identify, enter into and maintain collaboration agreements with third
parties; manage competition; manage expenses; raise the substantial
additional capital needed to achieve its business objectives; attract
and retain qualified personnel; and successfully execute on its business
strategies; risks described under the caption “Risk Factors” in Syros’
Annual Report on Form 10-K for the year ended December 31, 2016, which
is on file with the Securities and Exchange Commission; and risks
described in other filings that Syros makes with the Securities and
Exchange Commission in the future. Any forward-looking statements
contained in this press release speak only as of the date hereof, and
Syros expressly disclaims any obligation to update any forward-looking
statements, whether because of new information, future events or
otherwise.

Contacts

Media Contact:
Syros Pharmaceuticals
Naomi Aoki,
617-283-4298
naoki@syros.com
or
Investor
Contact:

Stern Investor Relations, Inc.
Hannah
Deresiewicz, 212-362-1200
hannahd@sternir.com