Street Calls of the Week
Investing.com -- Sutro Biopharma (NASDAQ:STRO) stock rose 5.6% in after-hours trading Monday following the company’s announcement of an organizational restructuring aimed at prioritizing its antibody drug conjugate (ADC) programs.
The oncology company, which specializes in site-specific and novel-format ADCs, plans to reduce its workforce by approximately one-third as part of efforts to focus resources on advancing its three ADC programs and research collaborations. This restructuring, combined with expected near-term milestone payments, is projected to extend Sutro’s financial runway into at least mid-2027.
The extended cash runway will cover several key milestones, including the planned announcement of initial clinical data from STRO-004, the company’s next-generation Tissue Factor-targeting exatecan ADC, expected in 2026. It will also support the initiation of clinical studies for at least one additional ADC program.
"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—advancing Sutro’s ADC portfolio to deliver transformative therapies for patients with cancer," said Jane Chung, Sutro’s Chief Executive Officer.
Sutro remains on track to advance STRO-004 into clinical trials this year, with initial data anticipated in 2026. The company’s restructuring reflects its strategy to concentrate on programs with the highest potential impact while strengthening its financial position through upcoming development milestones.
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