Penny Stock Sutro Biopharma Cuts Costs, Refocuses Pipeline

Core Viewpoint - Sutro Biopharma is prioritizing its antibody-drug conjugates (ADC) pipeline while undergoing significant restructuring, including workforce reduction and deprioritization of certain drug developments [1][2]. Financial Performance - The company reported a loss of $2.96 per share for 2024, an increase from a loss of $1.78 the previous year, and missed the consensus estimate of $2.92 [4]. - Sales for 2024 were $62.04 million, exceeding the consensus of $59 million, but down from $153.7 million a year ago, primarily driven by collaborations with Astellas and Tasly [4]. Strategic Changes - Sutro plans to cease operations at its San Carlos manufacturing facility by the end of 2025 and is reducing its workforce by nearly 50% [2]. - The company has deprioritized further investment in Luveltamab tazevibulin (luvelta, STRO-002) across all indications and is exploring global out-licensing opportunities for this drug [2]. Cash Position and Runway - As of December 31, 2024, Sutro had $316.9 million in cash, cash equivalents, and marketable securities [2]. - The company estimates that cash payments from its strategic portfolio review and related restructuring will be between $40 to $45 million, providing a cash runway into at least the fourth quarter of 2026, excluding anticipated milestones from existing collaborations [3]. Pipeline Developments - Sutro's ADC targeting Tissue Factor, STRO-004, is expected to enter clinical trials in the second half of 2025 [6]. - The differentiated integrin beta-6 ADC, STRO-006, is set to begin clinical development in 2026, targeting multiple solid tumors [6]. - An Investigational New Drug (IND) application for Sutro's first wholly-owned dual-payload ADC is anticipated to be filed in 2027 [6]. Leadership Changes - Jane Chung, the current President and Chief Operating Officer, will take on the responsibilities of Chief Executive Officer and Board member immediately [4].