Sutro Biopharma Stock (STRO): Why The Price Increased Today

By Amit Chowdhry ● Dec 27, 2021
  • The stock price of Sutro Biopharma Inc (NASDAQ: STRO) increased by over 5% during intraday trading today. This is why it happened.

The stock price of Sutro Biopharma Inc (NASDAQ: STRO) – a clinical-stage drug discovery, development, and manufacturing company focused on the application of precise protein engineering and rational design to create next-generation cancer and autoimmune therapeutics – increased by over 5% during intraday trading today. Investors are responding positively to Sutro Biopharma announcing an exclusive license agreement with Tasly Biopharmaceuticals Co., Ltd., a holding subsidiary of Tasly Pharmaceutical Group Co., Ltd. (SHA:600535) for the development and commercialization of STRO-002 in Greater China, consisting of mainland China, Hong Kong, Macau and Taiwan. And STRO-002 is a FolRα-targeting antibody-drug conjugate (ADC), currently in clinical studies for patients with ovarian and endometrial cancers in the U.S. and Europe.

Under the terms of the deal, Sutro will receive an upfront payment of $40 million and be eligible to receive potentially up to $345 million in development and commercial milestone payments. Tasly will pursue the clinical development, regulatory approval, and commercialization of STRO-002 in Greater China for ovarian and endometrial cancers, with the potential to expand to further oncological indications including non-small cell lung cancer (NSCLC) and triple-negative breast cancer (TNBC). Sutro retains the development and commercial rights of STRO-002 outside of Greater China. Sutro will be responsible for the clinical trial and initial commercial supply of STRO-002 for trials in the licensed territory pursuant to a supply agreement according to customary terms. Upon commercialization, Sutro will receive tiered, double-digit royalties based on annual net sales of STRO-002 in Greater China.

KEY QUOTES:

“We are delighted to gain access to this promising drug, which has the potential to be the best-in-class FolRα ADC for patients with debilitating cancers, including ovarian cancer and potentially FolRα-expressing cancers. There is a huge unmet need for oncology patients within Greater China and we look towards future development and commercialization of STRO-002 to serve these needs.”

— Kaijing Yan, Chairman of the Board

“This agreement further validates our emerging clinical data surrounding the development of STRO-002. Tasly is an excellent partner for our Greater China collaboration, with a history of successful execution for developing and commercializing therapeutics. We are delighted to broaden the geographical footprint of STRO–002 and allow greater access for cancer patients to a new possible treatment option.”

— Bill Newell, Chief Executive Officer of Sutro

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.