Core Insights - Boehringer Ingelheim BioXcellence and Sutro Biopharma have successfully scaled up Sutro's cell-free expression technology for commercial production of luveltamab tazevibulin (luvelta), an antibody-drug conjugate targeting ovarian cancer and other cancers expressing FRα [1][2][10] - This achievement marks a significant milestone in the biopharmaceutical industry, demonstrating the capability to produce ADCs at a large scale under Good Manufacturing Practice (GMP) conditions [2][5] Company Overview - Boehringer Ingelheim is a biopharmaceutical company focused on human and animal health, with a strong emphasis on research and development to create innovative therapies for high unmet medical needs [6] - Sutro Biopharma is a clinical-stage company dedicated to developing precisely designed cancer therapeutics, with a robust pipeline including luveltamab tazevibulin [10] Technology and Innovation - Sutro's cell-free protein synthesis platform utilizes cellular components for protein generation, allowing for the synthesis of a wide range of molecules, from small peptides to complex proteins like monoclonal antibodies [3] - The modular approach of Sutro's technology enables site-specific conjugation of proteins to chemicals, enhancing the safety and efficacy profile of next-generation ADCs compared to traditional methods [4][5] Partnership and Collaboration - The partnership between Boehringer Ingelheim and Sutro has been instrumental in achieving commercial-scale manufacturing, showcasing the synergies between the two companies [4][5] - Sutro is actively seeking additional business development partners to further advance its technology platform and product pipeline [5]

Core Insights - Sutro Biopharma, Inc. (STRO) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2][10] Earnings Estimates and Stock Price Movement - The change in a company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with near-term stock price movements, particularly influenced by institutional investors [3][5] - Rising earnings estimates and the subsequent rating upgrade for Sutro Biopharma suggest an improvement in the company's underlying business, which could lead to higher stock prices [4][10] Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [6][8] - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are recognized for superior earnings estimate revisions [8][9] Earnings Estimate Revisions for Sutro Biopharma - For the fiscal year ending December 2024, Sutro Biopharma is expected to earn -$2.89 per share, reflecting a change of -51.3% from the previous year, although analysts have raised their estimates by 2.3% over the past three months [7]

Core Viewpoint - Sutro Biopharma, Inc. reported a quarterly loss of $0.59 per share, which was better than the Zacks Consensus Estimate of a loss of $0.74, indicating an earnings surprise of 20.27% [1] Financial Performance - The company posted revenues of $8.52 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 53.76%, compared to revenues of $16.92 million a year ago [2] - Over the last four quarters, Sutro Biopharma has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Sutro Biopharma shares have declined approximately 4.9% since the beginning of the year, while the S&P 500 has gained 25.5% [3] - The current Zacks Rank for Sutro Biopharma is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.75 on revenues of $17.4 million, and for the current fiscal year, it is -$2.96 on revenues of $69.17 million [7] - The trend of estimate revisions for Sutro Biopharma is mixed, which could change following the recent earnings report [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Sutro Biopharma belongs, is currently in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Product Development - The company is developing site-specific and novel-format antibody drug conjugates (ADCs) using its proprietary XpressCF® and XpressCF+® platforms, targeting clinically validated cancer treatments [123]. - The most advanced product candidate, STRO-002 (luvelta), is designed for patients with FRα-expressing cancers, including ovarian cancer, and has shown promising preliminary efficacy data in Phase 1 trials [124][126]. - The company initiated a Phase 2/3 study (REFRαME-O1) in June 2023, enrolling 57 patients, with plans to randomize approximately 516 patients in Part 2 of the study [132]. - The company is also exploring luvelta in combination with bevacizumab, showing an ORR of 56% at the recommended Phase 2 dose [134]. - The IND for treating FRα-expressing non-small cell lung cancer (NSCLC) with luvelta was cleared by the FDA in early 2024, with a Phase 2 study initiated in August 2024 [137]. - The company plans to file an IND for its preclinical asset STRO-004 in the second half of 2025, targeting tissue factor with a differentiated safety profile [140]. - The company has entered into collaborations with leading pharmaceutical companies, including licensing agreements for luvelta in Greater China with Tasly, which received its first IND clearance in August 2023 [141]. Financial Performance - The company reported a net loss of $155.0 million for the nine months ended September 30, 2024, compared to a net loss of $137.9 million for the same period in 2023, reflecting an increase in losses [144]. - Total revenue for the three months ended September 30, 2024, was $8.5 million, down 50% from $16.9 million in the same period of 2023 [159]. - Revenue from Astellas Pharma for the three months ended September 30, 2024, was $7.7 million, a decrease of 23% from $10.0 million in the same period of 2023 [160]. - The accumulated deficit as of September 30, 2024, was $714.4 million, indicating significant ongoing financial challenges [144]. - Operating expenses for the three months ended September 30, 2024, totaled $76.4 million, a 25% increase from $60.9 million in the same period of 2023 [159]. - The company had a loss from operations of $67.9 million for the three months ended September 30, 2024, compared to a loss of $44.0 million in the same period of 2023, representing a 54% increase in operational losses [159]. - Total revenue decreased by $8.4 million to $40.0 million for the three months ended September 30, 2024, compared to the same period in 2023 [161]. - Research and development expenses increased by $16.4 million, or 36%, to $62.0 million for the three months ended September 30, 2024 [162]. - General and administrative expenses decreased by $0.9 million, or 6%, to $14.0 million for the three months ended September 30, 2024 [163]. - Total revenue increased by $7.2 million, or 18%, to $47.2 million for the nine months ended September 30, 2024, compared to the same period in 2023 [168]. - Research and development expenses increased by $54.3 million, or 43%, to $181.0 million for the nine months ended September 30, 2024 [170]. - General and administrative expenses decreased by $6.4 million, or 14%, to $39.4 million for the nine months ended September 30, 2024 [171]. Cash Flow and Financing - Cash, cash equivalents, and marketable securities totaled $388.3 million as of September 30, 2024 [176]. - The company sold 667,780 shares of Vaxcyte common stock for net proceeds of $74.0 million during the three months ended September 30, 2024 [177]. - Cash used in operating activities for the nine months ended September 30, 2024 was $119.8 million, compared to $125.7 million for the same period in 2023 [193][194]. - Cash provided by investing activities for the nine months ended September 30, 2024 was $131.0 million, primarily from maturities and sales of marketable securities of $394.5 million [195]. - Cash provided by financing activities for the nine months ended September 30, 2024 was $94.1 million, mainly from $71.5 million of net proceeds from an underwritten offering [197]. - The company had cash, cash equivalents, and marketable securities of $388.3 million as of September 30, 2024, up from $333.7 million as of December 31, 2023 [203]. - The company may seek additional financing through public or private equity offerings, debt financings, and collaborations, but adequate funding may not be available on acceptable terms [189]. Lease Obligations - The aggregate estimated base rent payments due over the San Carlos Lease Extension Period is approximately $4.2 million [184]. - The aggregate estimated base rent payments due over the Industrial Lease Extension Period is approximately $4.3 million [185]. - The total estimated base rent payments due over the Sublease term is approximately $39.1 million, including a potential financial benefit of $5.2 million in rent abatement [187]. Interest Rate and Risk Management - The company does not engage in investments for trading or speculative purposes and has not used derivative financial instruments to manage interest rate risk exposure [204]. - The company does not anticipate being exposed to material risks due to changes in interest rates [204]. - A hypothetical 10% change in market interest rates would not have a material impact on the company's financial statements [204]. - The company believes that its cash, cash equivalents, or marketable securities do not have a significant risk of default or illiquidity [204].

Exhibit 99.1 Sutro Biopharma Reports Third Quarter 2024 Financial Results and Business Highlights - Expects to deliver three Investigational New Drug (IND) applications in next three years based on nextgeneration ADC technology - -Two new clinical trials, REFRαME-P1, a registration-enabling trial of luvelta for pediatric patients with rare leukemia, and REFRαME-L1, a Phase 2 trial of luvelta for patients with non-small cell lung cancer, are underway - - Sutro presented data from the Phase 1b study of luvelt ...

- Expects to deliver three Investigational New Drug (IND) applications in next three years based on next-generation ADC technology - - Two new clinical trials, REFRαME-P1, a registration-enabling trial of luvelta for pediatric patients with rare leukemia, and REFRαME-L1, a Phase 2 trial of luvelta for patients with non-small cell lung cancer, are underway - - Sutro presented data from the Phase 1b study of luvelta in combination with bevacizumab at ESMO 2024 demonstrating a 56% response rate at the recommen ...

Sutro Biopharma, Inc. (NASDAQ: STRO ) specializes in antibody-drug conjugates [ADCs] for oncology therapeutics. The company leverages its proprietary XpressCF and XpressCF+ platforms to produce complex proteins without using living cells. This gives STRO more control over protein synthesis and site-specific drug My name is Myriam Hernandez Alvarez. I received the Electronics and Telecommunication Engineering degree from the Escuela Politecnica Nacional, Quito, Ecuador, the M.Sc. degree in computer science f ...

- 4.3 mg/kg of luveltamab tazevibulin (luvelta) in combination with standard dose of bevacizumab (15 mg/kg) every 3 weeks resulted in a 56% objective response rate in patients with late-stage ovarian cancer and was selected to be the recommended phase 2 dose (RP2D) - - Luvelta in combination with bevacizumab demonstrated encouraging preliminary antitumor activity (35% response rate) across all explored dose ranges - - Expansion at RP2D is ongoing with an additional 23 patients enrolled to date; expansion da ...

Sutro Biopharma (STRO) , a clinical-stage company, is focused on developing novel antibody drug conjugates or ADC candidates using its proprietary drug development platforms to treat several oncology indications. The company's pipeline comprises only one candidate, luveltamab tazevibulin or luvelta (formerly known as STRO002), which is being developed for various FRα-expressing cancers. Sutro Biopharma's shares gained 8.9% in the past week after the company announced that it has begun enrollment in its glob ...

Sutro Biopharma, Inc. (STRO) came out with a quarterly loss of $0.59 per share versus the Zacks Consensus Estimate of a loss of $0.76. This compares to loss of $0.64 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 22.37%. A quarter ago, it was expected that this company would post a loss of $0.92 per share when it actually produced a loss of $0.95, delivering a surprise of -3.26%. Over the last four quarters, the company has ...