Sutro Biopharma cuts workforce by one-third to extend cash runway

SOUTH SAN FRANCISCO - Sutro Biopharma, Inc. (NASDAQ:STRO), a biotech company with a market capitalization of $75 million, announced Monday an organizational restructuring that will reduce its workforce by approximately one-third as the oncology company refocuses on advancing its three antibody-drug conjugate (ADC) programs and research collaborations. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 3.12, though it has been quickly burning through cash.

The company said the restructuring, combined with expected near-term milestone payments, is projected to extend its cash runway into at least mid-2027. This timeline would carry the company beyond several key milestones, including the planned announcement of initial clinical data from STRO-004, its Tissue Factor-targeting exatecan ADC, and the initiation of clinical studies for at least one additional ADC program. Despite the stock’s significant decline of nearly 75% over the past year, InvestingPro data suggests the company is currently undervalued, with additional insights available in the comprehensive Pro Research Report.

"After continued review of our business and pipeline priorities, we have identified and are implementing further operational efficiencies to focus our resources where they will have the greatest impact," said Jane Chung, Sutro’s Chief Executive Officer.

Sutro remains on track to advance STRO-004 into clinical trials this year, with initial data expected in 2026, according to the company.

The South San Francisco-based firm specializes in developing next-generation ADCs using its cell-free platform, which is designed to optimize antibodies, linkers, and payloads to potentially improve drug exposure and reduce side effects.

The restructuring announcement comes as many biotechnology companies face pressure to extend financial resources amid challenging market conditions for raising additional capital.

The information in this article is based on a press release statement from Sutro Biopharma.

In other recent news, Sutro Biopharma announced its second-quarter 2025 earnings, during which the company reaffirmed its intention to file an Investigational New Drug application for STRO-004 in the latter half of 2025. This development was part of the corporate updates shared in the earnings report. Meanwhile, analyst Reni Benjamin from Citizens JMP has reiterated a Market Perform rating for Sutro Biopharma, indicating a neutral stance on the stock following the earnings announcement. In a significant collaboration, Sutro Biopharma has partnered with the U.S. Food and Drug Administration to develop reference materials for antibody drug conjugates. This partnership is aimed at enhancing regulatory standards and improving analytical methods in ADC drug development. These recent developments provide investors with key insights into Sutro Biopharma’s ongoing projects and strategic partnerships.

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