Sutro Biopharma(STRO) - 2024 Q1 - Quarterly Results

Business Highlights and Outlook Sutro Biopharma advanced its luvelta clinical program, secured a major Ipsen licensing deal, and strengthened its financial position in Q1 2024, positioning for key data readouts - The company advanced its luvelta clinical program, progressed its pipeline, and established a new licensing relationship with Ipsen, augmenting its cash position[2] - Key catalysts for 2024 include expanded patient data for luvelta with bevacizumab, a registrational trial for pediatric AML, and a Phase 2 trial in NSCLC[2] Luveltamab Tazevibulin (luvelta) Program Updates The luvelta program is advancing with active enrollment in REFRαME-O1, planned initiation of REFRαME-P1 for pediatric AML, and an FDA-cleared IND for NSCLC - The randomized portion (Part 2) of the REFRαME-O1 registration-enabling study for platinum-resistant ovarian cancer is actively enrolling[1][3] - An IND for a Phase 2 trial of luvelta in non-small cell lung cancer (NSCLC) has been cleared by the FDA, with patient dosing expected in H2 2024[1][3] - Enrollment for REFRαME-P1, a registration-enabling trial for pediatric AML, is expected to be initiated in H2 2024[2][3] - The Phase 2 expansion study of luvelta in combination with bevacizumab is nearing completion, with enrollment expected to conclude in H1 2024[1][3] Pipeline and Collaboration Updates Sutro secured a global licensing agreement for STRO-003, plans an IND for STRO-004 in 2025, and generated $864 million from collaborations - A global licensing agreement for STRO-003 with Ipsen could yield up to $899 million in payments plus tiered royalties, with $75 million upfront received in April[1][9] - Sutro plans to submit an IND for STRO-004, a tissue factor-targeting ADC, in 2025[9] - The company has generated approximately $864 million in aggregate payments from collaborators through March 31, 2024, leveraging its proprietary cell-free platform[9] Corporate Updates and Events Sutro strengthened its cash position by raising $75 million through an equity offering in April and will participate in two investor conferences - Strengthened cash position with an underwritten common stock offering, generating $75.0 million in gross proceeds[1][5] - Sutro will participate in the Citizens JMP Life Sciences Conference (May 13-14, 2024) and the Jefferies Healthcare Conference (June 5-6, 2024)[10] First Quarter 2024 Financial Performance Sutro reported Q1 2024 revenues of $13.0 million, a net loss of $58.2 million, and increased operating expenses, with a $267.6 million cash position bolstered post-quarter - As of March 31, 2024, Sutro held $267.6 million in cash and investments, plus $45.6 million in Vaxcyte common stock[1][6] - Post-quarter, Sutro's cash position was bolstered by $75 million from the Ipsen licensing deal and $75 million from an underwritten stock offering in April[1] Q1 2024 Key Financial Results | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $13.0M | $12.7M | | Total Operating Expenses | $69.6M | $54.9M | | Net Loss | ($58.2M) | ($50.1M) | | Net Loss Per Share | ($0.95) | ($0.85) | Financial Position As of March 31, 2024, Sutro held $267.6 million in cash and equivalents, $45.6 million in Vaxcyte stock, with total assets of $403.4 million - As of March 31, 2024, Sutro held $267.6 million in cash, cash equivalents, and marketable securities[6] - The company held Vaxcyte common stock valued at $45.6 million, resulting in a $3.7 million non-operating, unrealized gain for the quarter[6][7] Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | $403,402 | $470,736 | | Total Liabilities | $305,378 | $321,087 | | Total Stockholders' Equity | $98,024 | $149,649 | Operating Results Q1 2024 revenue was $13.0 million, total operating expenses increased to $69.6 million due to R&D, resulting in a net loss of $58.2 million - Revenue for Q1 2024 was $13.0 million, a slight increase from $12.7 million in Q1 2023, primarily from collaborations[8] Operating Expenses Comparison (in thousands) | Expense Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Research and development | $56,878 | $39,399 | | General and administrative | $12,721 | $15,512 | | Total operating expenses | $69,599 | $54,911 | - Net loss for Q1 2024 was $58.2 million, or ($0.95) per share, compared to $50.1 million, or ($0.85) per share, in Q1 2023[16] Financial Statements The unaudited Q1 2024 financial statements detail a net loss of $58.2 million, total assets of $403.4 million, and stockholders' equity of $98.0 million Selected Statements of Operations Sutro Biopharma reported Q1 2024 revenues of $13.0 million, total operating expenses of $69.6 million, and a net loss of $58.2 million or ($0.95) per share Q1 2024 vs Q1 2023 Statement of Operations (in thousands, except per share data) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2024 | 2023 | | Revenue | $13,008 | $12,674 | | Total operating expenses | $69,599 | $54,911 | | Loss from operations | ($56,591) | ($42,237) | | Net loss | ($58,213) | ($50,050) | | Net loss per share, basic and diluted | ($0.95) | ($0.85) | Selected Balance Sheets As of March 31, 2024, the balance sheet showed $267.6 million in cash and equivalents, total assets of $403.4 million, and stockholders' equity of $98.0 million Balance Sheet as of March 31, 2024 vs December 31, 2023 (in thousands) | | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash, cash equivalents and marketable securities | $267,602 | $333,681 | | Investment in equity securities | $45,616 | $41,937 | | Total Assets | $403,402 | $470,736 | | Liabilities and Stockholders' Equity | | | | Total liabilities | $305,378 | $321,087 | | Total stockholders' equity | $98,024 | $149,649 | | Total Liabilities and Stockholders' Equity | $403,402 | $470,736 |