Sutro Biopharma, Inc. (STRO), a clinical-stage drug discovery, development, and manufacturing company, has surged 6.38% in the premarket trading session. Consequently, STRO stock is trading at $15.50 at the time of the writing. On Monday, the stock closed the day at $14.57 after gaining an increase of 2.25%. The consistent increase could be attributed to the agreement between Sutro Biopharma and Tasly Biopharmaceuticals.
Why STRO Rising?
On Monday, Sutro Biopharma announced to have entered into an exclusive license agreement with Tasly Biopharmaceuticals, a holding subsidiary of Tasly Pharmaceutical Group Co., Ltd., for the development and commercialization of STRO-002 in mainland China, Hong Kong, Macau, and Taiwan. 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.
Provision of Interim Data
On the same day, Sutro Biopharma announced that it will provide interim data from the Company’s ongoing dose-expansion cohort of the Phase 1 study of STRO-002 at the Company hosted KOL virtual event. STRO-002 is a folate receptor alpha (FolRα) targeting antibody-drug conjugate (ADC), for patients with advanced ovarian cancer. The event would be held on 5th January 2022.
Q3 2021 Operational Results
On 10th November, STRO released the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th September. The company generated revenue of $8.5 million during the quarter against $17.8 million for the same period of 2020. The total operating expenses for the quarter were $43.1 million against $28.4 million for the same quarter of 2020. The net loss suffered by the company during the quarter was $30.9 million (or $0.67 per basic and diluted share) against the net income of $17.1 million (or $0.46 and $0.45 per basic and diluted share) for the same period of 2020.
Future Outlook for STRO
The last three months have seen STRO stock decline more than 24%. However, analyst estimates suggest that the company is in a good shape to attract the investors in coming months. Hence, potential investors should keep a close eye on the performance of the stock.