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Investing.com - Citizens reiterated a Market Perform rating on Sutro Biopharma (NASDAQ:STRO) following the company’s third-quarter 2025 earnings announcement and corporate updates last week. The biotech stock has shown a significant 12.24% return over the past week, though it remains 74% below its 52-week high of $3.46.
The research firm noted that Sutro provided guidance on initial data from the ongoing Phase 1 study of STRO-004 and plans to file an Investigational New Drug (IND) application for STRO-006 by mid-2026.
Sutro also unveiled a wholly-owned dual-payload antibody-drug conjugate (ADC), STRO-227, at an analyst event, with plans to file an IND in 2026/2027.
Citizens acknowledged that Sutro’s pipeline is advancing into clinical studies, partnered programs with Astellas are on track for clinical entry in the first half of 2026, and the company maintains a solid cash position of $167.6 million.
The firm maintained its Market Perform rating based on Sutro shares currently trading at approximately 54% of the company’s ending third-quarter 2025 cash position, which Citizens views as a fair discount consistent with other biotech companies facing similar uncertainties. According to InvestingPro, Sutro appears undervalued at its current price of $0.91, with analyst targets ranging from $0.80 to $5.00. For deeper insights into Sutro’s financial health and growth prospects, check out the comprehensive Pro Research Report available for this and 1,400+ other US equities.
In other recent news, Sutro Biopharma announced a significant organizational restructuring aimed at extending its financial runway. The company plans to reduce its workforce by approximately one-third to focus on advancing its three antibody-drug conjugate (ADC) programs and research collaborations. This strategic move is expected to extend Sutro’s cash resources into at least mid-2027. The restructuring is coupled with anticipated near-term milestone payments, which are crucial for supporting the company’s operations. Sutro Biopharma also highlighted plans to announce initial clinical data from STRO-004, its Tissue Factor-targeting exatecan ADC, in the near future. Additionally, the company intends to initiate clinical studies for at least one more ADC program. These developments come as Sutro aims to prioritize its novel ADC programs and research efforts.
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