Sutro Biopharma(STRO) - 2025 Q1 - Quarterly Results

Strategic and Corporate Updates In Q1 2025, Sutro Biopharma executed a significant strategic shift, discontinuing the development of luvelta to prioritize its wholly-owned, next-generation ADC portfolio, including exatecan and dual-payload ADCs, accompanied by a major corporate restructuring, including the appointment of Jane Chung as the new Chief Executive Officer, a nearly 50% reduction in headcount, and plans to decommission its manufacturing facility by year-end 2025 - Announced a strategic decision to shift focus from luvelta to a pipeline of wholly-owned novel exatecan and dual-payload ADCs[3][5] - Jane Chung, formerly President and COO, was appointed as Chief Executive Officer and a member of the Sutro Board[10] - The company is reducing its organizational headcount by nearly 50% and decommissioning its manufacturing facility by year-end 2025[10] Pipeline and Collaborations Sutro's pipeline is now led by STRO-004, a Tissue Factor-targeting ADC, with an IND submission planned for the second half of 2025, and the company anticipates filing three INDs for its wholly-owned programs over the next three years, while key collaborations, such as with Astellas, continue to advance, with one program triggering a $7.5 million milestone payment to Sutro after initiating IND-enabling toxicology studies - STRO-004, a next-generation Tissue Factor-targeting ADC, has been selected as the lead clinical candidate, with an IND planned for 2H 2025[3][4][8] Wholly-Owned Pipeline Development Timeline | Program | Description | Anticipated IND/Clinical Entry | | :--- | :--- | :--- | | STRO-004 | Novel exatecan Tissue Factor ADC | 2H 2025 | | STRO-006 | Differentiated integrin beta-6 (ITGB6) ADC | 2026 | | Dual-Payload ADC | First wholly-owned dual-payload ADC | 2027 | - Presented promising preclinical data for STRO-004 at AACR, showing potent anti-tumor activity and a favorable safety profile[3][8] - The Astellas collaboration for dual-payload iADCs advanced with one program entering an IND-enabling toxicology study, triggering a $7.5 million milestone payment to Sutro[3][4][8] Financial Results For the first quarter of 2025, Sutro reported revenue of $17.4 million and a net loss of $76.0 million, which includes $21.0 million in restructuring costs, and the company ended the quarter with $249.0 million in cash and marketable securities, providing an expected cash runway into early 2027 Financial Performance In Q1 2025, revenue grew to $17.4 million from $13.0 million in Q1 2024, primarily driven by the Astellas collaboration, while operating expenses totaled $85.9 million, including $21.0 million in restructuring costs related to the deprioritization of the luvelta program, resulting in a net loss of $76.0 million, or ($0.91) per share Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $17,399 | $13,008 | | Research and development | $51,597 | $56,878 | | General and administrative | $13,273 | $12,721 | | Restructuring and related costs | $21,043 | $0 | | Total operating expenses | $85,913 | $69,599 | | Loss from operations | ($68,514) | ($56,591) | | Net loss | ($75,968) | ($58,213) | | Net loss per share | ($0.91) | ($0.95) | - Revenue increased to $17.4 million for Q1 2025, compared to $13.0 million for Q1 2024, with the 2025 amount principally related to the Astellas collaboration[12] - The company incurred $21.0 million in restructuring and related costs during Q1 2025 due to the deprioritization of the luvelta program[14][20] Financial Position and Liquidity As of March 31, 2025, Sutro had $249.0 million in cash, cash equivalents, and marketable securities, a decrease from $316.9 million at the end of 2024, with total assets of $321.4 million and total liabilities of $347.2 million, and despite the cash burn, cost reductions from the recent restructuring are expected to extend the cash runway into early 2027 - Cash, cash equivalents and marketable securities totaled $249.0 million as of March 31, 2025[4][11] - The current cash position, combined with cost reductions from restructuring, provides an expected cash runway into early 2027, excluding potential future milestone payments[4][11] Selected Balance Sheet Data (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and marketable securities | $248,972 | $316,895 | | Total Assets | $321,430 | $387,207 | | Total Liabilities | $347,241 | $342,606 | | Total Stockholders' (Deficit) Equity | ($25,811) | $44,601 |