On Tuesday, Piper Sandler maintained an Overweight rating and a $11.00 price target for Sutro Biopharma (NASDAQ:STRO) stock, traded on NASDAQ:STRO.
The firm highlighted the promising initial Phase I/II trial results of Sutro's drug luvelta in combination with Avastin for treating late-stage ovarian cancer patients. The impressive 56% objective response rate (ORR) was observed in the study.
Sutro Biopharma has completed the enrollment of 50 women with FolRα+ platinum-resistant ovarian cancer for the Phase II portion of the REFRaME-O1 trial to select a dose by the end of 2024.
The company is now progressing with the enrollment of approximately 516 women to receive either monotherapy luvelta or chemotherapy.
Interim analysis of ORR and duration of response (DoR) from the REFRaME-O1 trial could lead to accelerated approval, while final progression-free survival (PFS) and overall survival (OS) data are expected to support full approval.
Additionally, Sutro is actively enrolling patients with FolRα+ non-small cell lung cancer (NSCLC) in the Phase II REFRaME-L1 study, with initial data anticipated in the first half of 2025.
The company is also preparing to initiate the registrational REFRaME-P1 trial for pediatric acute myeloid leukemia (AML) with CBF/GLIS alterations in the second half of 2024.
Sutro Biopharma plans to host a virtual ADC Research event on October 10th, which is expected to provide further insights into their research and development progress.
Financially, the company reported having $376 million in cash at the end of the second quarter of 2024, in addition to approximately $77 million in shares of PCVX.
The firm's reiteration of the Overweight rating and $11 price target reflects confidence in Sutro's clinical development strategy and the potential of its drug candidates.
In other recent news, Sutro Biopharma has been making significant strides in its clinical trials and financial performance. The company has initiated a global Phase 2 clinical trial for its drug luveltamab tazevibulin, targeting non-small cell lung cancer patients.
A 56% objective response rate has been observed at the recommended phase 2 dose of Luvelta, which is considered competitive within the industry.
TD (TSX:TD) Cowen reiterated its Buy rating on Sutro Biopharma, reflecting optimism about the company's cancer treatment drug, Luvelta. Truist Securities adjusted the company's stock price target to $15.00, while maintaining a Buy rating.
Piper Sandler confirmed its Overweight rating with a consistent price target of $11.00, noting the company's strong financial footing. The company has also appointed Sukhi Jagpal as a new board director and Audit Committee member.
These are recent developments for Sutro Biopharma as it seeks to advance Luvelta through the regulatory process and eventually bring it to market.
The company is also preparing to initiate two more clinical trials for Luvelta within the current year, including the pivotal REFRaME-P1 trial in pediatric Acute Myeloid Leukemia and a Phase II trial in Non-Small Cell Lung Cancer.
InvestingPro Insights
As Sutro Biopharma continues to advance its clinical trials, investors are keeping a close eye on the company's financial health and stock performance. According to InvestingPro data, Sutro Biopharma holds a market cap of approximately $303.27 million, demonstrating a notable presence in the biopharmaceutical sector. Despite challenges, the company has shown a remarkable revenue growth of nearly 198% over the last twelve months as of Q2 2024. This growth is reflective of Sutro's aggressive development strategy and may bolster investor confidence in its potential.
InvestingPro Tips indicate that while Sutro Biopharma has more cash than debt on its balance sheet, analysts are concerned about the company's cash burn rate and weak gross profit margins. Additionally, there is an expectation of a sales decline and a drop in net income for the current year. However, with liquid assets surpassing short-term obligations and a strong return over the last three months, some investors might find the risk profile balanced by potential upsides. Notably, the stock has achieved a 40.62% price total return over the past three months, which could capture the interest of those looking for short-term gains.
For those considering an investment in Sutro Biopharma, it is essential to weigh these factors alongside the company's long-term prospects. For more detailed analysis and additional InvestingPro Tips, interested parties can visit the dedicated page for Sutro Biopharma on InvestingPro. As of now, there are 10 additional tips available that could provide deeper insights into the company's financials and market performance.
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