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SOUTH SAN FRANCISCO - Sutro Biopharma, Inc. (NASDAQ: STRO), a clinical-stage biotech company with a market capitalization of approximately $76 million, announced today the appointment of Greg Chow as its new Chief Financial Officer (CFO), effective immediately. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet, though it’s currently experiencing rapid cash burn. Chow brings over two decades of experience in finance and operations within the biotech sector.
Chow’s career includes significant roles in corporate finance, capital markets, and investment banking, as well as financial accounting and drug development operations. His previous position was at NodThera as Chief Financial and Business Officer, where he was instrumental in business development and financing activities. He has also served as CFO at Freenome Holdings and Frontier Medicines, contributing to major financing rounds and overseeing collaborations with other industry players.
At Sutro, Chow is expected to play a critical role in driving financial discipline and operational efficiency, which are deemed essential for the company as it aims to reach key clinical milestones. His expertise is anticipated to bolster Sutro’s financial strategy and support its mission to deliver advanced therapies to patients.
In connection with his appointment, Sutro’s Compensation Committee granted Chow equity awards under the company’s 2021 Equity Inducement Plan, which includes a restricted stock unit award for 100,000 shares and a non-qualified option to purchase 275,000 shares of Sutro’s common stock. These inducement grants are part of Sutro’s strategy to attract top talent to its workforce.
Sutro Biopharma is recognized for its cell-free technology platform and a pipeline of novel antibody drug conjugates (ADCs) aimed at combating cancer. While the company generated revenue of $66.4 million in the last twelve months, InvestingPro analysis shows the stock has faced significant challenges, declining nearly 79% over the past year. The company’s approach to drug discovery has led to partnerships that validate its continuous product innovation. InvestingPro subscribers have access to 12 additional key insights about Sutro’s financial health and market position through the comprehensive Pro Research Report.
This announcement is based on a press release statement from Sutro Biopharma. The company’s forward-looking statements reflect its current expectations but are subject to the inherent uncertainties of drug development and regulatory approval processes. With an overall Financial Health score rated as ’Weak’ by InvestingPro, investors seeking deeper insights into Sutro’s financial position, including detailed analysis of its cash flow and growth metrics, can access the complete Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks. Sutro undertakes no obligation to publicly update any forward-looking statements post this announcement.
In other recent news, Sutro Biopharma reported its fourth-quarter 2024 financial results, meeting its earnings per share forecast of -$0.83 and surpassing revenue expectations with $14.8 million against an anticipated $12.15 million. The company has announced a major strategic shift, focusing on its next-generation antibody-drug conjugate (ADC) pipeline, while deprioritizing its luvelta program. This shift includes a significant workforce reduction of about 50% and the externalization of manufacturing operations. In light of these changes, H.C. Wainwright downgraded Sutro Biopharma’s stock from "Buy" to "Neutral," citing the company’s strategic realignment and the removal of luvelta from their valuation model. Oppenheimer also downgraded the stock to "Perform," expressing caution due to the uncertainty surrounding potential partnerships for luvelta. Jefferies, however, maintained a "Buy" rating, albeit lowering the price target from $20 to $8, acknowledging the company’s focus on advancing its preclinical ADCs. Additionally, Dr. John Freund, a long-serving board member, announced his decision not to seek re-election, though he will continue in a consulting role. These developments are part of Sutro Biopharma’s broader strategy to extend its cash runway into the fourth quarter of 2026.
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