Sutro Biopharma Inc. (STRO) advanced by a further 6.38% in the pre-market while it gained 2.25% during regular trading. On December 27, the company announced an exclusive license agreement for STRO-002 with Tasly Biopharmaceuticals. Hence, the news caused the stock to continue on a bullish path in the pre-market.
During the regular session, the stock traded between $14.33 and $15.27, to close at $14.57. Currently, the 46.27 million outstanding shares of the company trade at a market capitalization of $659.35 million.
STRO’s License Agreement with Tasly
As per Monday’s announcement, the company entered into an exclusive license agreement with Tasly for developing and commercializing STRO-002. Further, the license encompasses Greater China including mainland China, Hong Kong, Macau, and Taiwan. Moreover, Tasly Biopharmaceuticals Co., Ltd. is a holding subsidiary of Tasly Pharmaceuticals Group Co., Ltd.
STRO-002 is currently under study in the U.S. and Europe in ovarian and endometrial cancer patients.
According to the agreement, $40 million will be paid to Sutro as an upfront payment. Moreover, Sutro will also be entitled to receive a further $345 million in commercial and milestones payments. The company will also be entitled to tiered, double-digit royalties on annual net sales of STRO-002 in the region. Furthermore, Tasly will develop and commercialize STRO-002 for ovarian and endometrial cancer with the future potential of expansion to include NSCLC (non-small cell lung cancer) and TNBC (triple-negative breast cancer.
In addition, outside of Greater China STRO will be responsible for the development and commercialization of STRO-002.
Recent Announcement
The company further announced on Monday, that it will provide its interim data from the ongoing Phase 1 study of STRO-002 at a KOL virtual event. Further, the KOL event will be held o Wednesday, January 5, 2022.
STRO’s Financial Analysis
On November 10, the company disclosed its financial results for the third quarter of 2021, which ended on September 30, 2021.
In the third quarter of 2021, STRO had revenue of $8.5 million, against$17.8 million in the year-ago quarter.
Furthermore, the company incurred total operating expenses of $43.2 million in Q3 of 2020. This compares to $28.4 million in the third quarter of 2020.
In addition, the company ended the third quarter of 2021, with cash, cash equivalents, and marketable securities of $254.2 million. Further, the company expects a cash runway into the second half of 2023.
