Syndax Pharmaceuticals (SNDX) selloff after the company ended development of axatilimab in idiopathic pulmonary fibrosis appears "overdone" because the program carried "little in valuation," while the company's Revuforj opportunity remains intact, BofA Securities said in a note Tuesday.

Shares are trading down about 18% after the company said a phase 2 trial of axatilimab in IPF failed to meet its primary endpoint of annualized forced vital capacity decline.

The investment firm said the IPF trial had taken on an "outsized role" in the narrative as a diversification catalyst, but its high-risk profile meant it was largely excluded from the Wall Street models.

The main debate still centers on acute myeloid leukemia opportunities, with Revuforj's ability to capture share across relapsed or refractory, post-transplant and first-line settings, according to the note.

BofA Securities maintained a buy rating on Syndax Pharmaceuticals, while lowering its price target to $23 from $26.

Price: 13.56, Change: -2.99, Percent Change: -18.07