Sutro Biopharma Q2 2024 Financial Results & Business Updates

Sutro Biopharma, Inc., a company based in South San Francisco and listed on NASDAQ, has released its financial results for the second quarter of 2024 and provided updates on its business activities. Sutro Biopharma specializes in developing innovative antibody-drug conjugates (ADCs) for oncology, using a site-specific approach.

During the second quarter of 2024, significant progress was made in developing Sutro’s lead product candidate, luveltamab tazevibulin (luvelta), across multiple cancer indications. Luvelta is an investigational ADC targeting the folate receptor alpha (FRα). Notably, an expansion cohort in a Phase 1b study combining luvelta with bevacizumab is currently enrolling patients. Moreover, Sutro is nearing the initiation of a second pivotal trial, REFRaME-P1, aimed at pediatric patients with a rare acute myeloid leukemia (AML) subtype. Additionally, preparations are underway to activate sites for a Phase 2 trial of luvelta in non-small cell lung cancer (NSCLC).

Bill Newell, CEO of Sutro, emphasized the company's dedication to advancing luvelta’s development across several cancer types. He highlighted that updated data from the ongoing Phase 1b study of luvelta in combination with bevacizumab will be shared at the European Society for Medical Oncology (ESMO) Congress in September 2024. This update will include data from patients with recurrent high-grade epithelial ovarian cancer.

Sutro is also making strides with its other pipeline candidates. The company recently secured a global licensing agreement with Ipsen for STRO-003, another ADC targeting ROR1, and plans to file an Investigational New Drug (IND) application for STRO-004 in 2025. Sutro continues to focus on optimizing its partnerships to enhance the value of its cell-free platform and has garnered approximately $970 million in payments from collaborators as of mid-2024.

On the corporate front, Sutro has strengthened its leadership team with new appointments. Sukhi Jagpal has joined the Board of Directors, bringing substantial experience in financial and strategic management. Barbara Leyman has been appointed Chief Business Development Officer, tasked with driving Sutro’s business development strategy.

Financially, Sutro reported having $426.0 million in cash, cash equivalents, and marketable securities as of June 30, 2024. This includes $375.6 million in cash and marketable securities, and approximately 0.7 million shares of Vaxcyte common stock valued at $50.4 million. The second quarter of 2024 saw revenue increase to $25.7 million, up from $10.4 million in the same period in 2023, driven primarily by collaborations with Astellas and Vaxcyte. However, operating expenses also rose to $74.4 million, compared to $56.6 million in the previous year, due to ongoing research and development activities.

Sutro's financial outlook remains cautious as the company continues to advance its clinical programs and invest in its pipeline. The upcoming months will be crucial as several clinical trials are expected to commence or yield new data, potentially paving the way for future regulatory submissions and commercialization efforts.

In conclusion, Sutro Biopharma has made substantial advancements in its oncology pipeline and strengthened its financial and leadership positions in the second quarter of 2024. The company is poised for significant milestones in the near future, particularly with its lead candidate, luvelta, across multiple cancer indications.