Sutro Biopharma, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Sutro Biopharma, Inc. filed its Q1 2024 10-Q, detailing financial performance, ongoing collaborations, and equity plan updates.</b>

AI Summary

SUTRO BIOPHARMA, INC. (STRO) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. Sutro Biopharma, Inc. reported its financial results for the quarter ended March 31, 2024. The company's filings reference various agreements including the Astellas License and Collaboration Agreement and the Merck Master Services Agreement. Key financial statement items such as Additional Paid-In Capital and Retained Earnings are detailed for the periods ending March 31, 2024, and December 31, 2023. The filing includes information on equity incentive plans, such as the Amended and Restated 2021 Equity Inducement Plan. Subsequent events, including an Ipsen Investment Agreement dated April 30, 2024, are noted.

Why It Matters

For investors and stakeholders tracking SUTRO BIOPHARMA, INC., this filing contains several important signals. The 10-Q filing provides a comprehensive overview of Sutro Biopharma's financial health and operational activities for the first quarter of 2024, crucial for investors assessing the company's trajectory. Details on various agreements and equity plans offer insight into the company's strategic partnerships and employee compensation structures, impacting future growth and shareholder value.

Risk Assessment

Risk Level: medium — SUTRO BIOPHARMA, INC. shows moderate risk based on this filing. The company's financial performance and future prospects are subject to the success of its clinical trials and the terms of its various collaboration and license agreements, which are complex and carry inherent risks.

Analyst Insight

Investors should closely examine the details of the Astellas and Merck agreements, as well as the impact of the recent Ipsen Investment Agreement, to understand potential revenue streams and development milestones.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2023-12-31 — Prior Period End Date (Financial statements)
• 2024-04-30 — Subsequent Event Date (Ipsen Investment Agreement)
• 2018-07-01 — Agreement Start Date (Merck Agreement)

Key Players & Entities

• SUTRO BIOPHARMA, INC. (company) — FILER
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-13 (date) — FILED AS OF DATE
• Merck Sharp And Dohme Corporation (company) — Agreement Party
• Astellas (company) — License and Collaboration Agreement
• Ipsen (company) — Investment Agreement
• Blackstone Life Sciences (company) — License Agreement
• Vaxcyte Inc (company) — Common Stock

FAQ

Risk Factors

• Financial Condition and Liquidity [medium — financial]: The company's ability to continue as a going concern is dependent on its ability to secure additional funding and achieve profitability.
• Regulatory Approval Process [high — regulatory]: The development and commercialization of pharmaceutical products are subject to extensive regulatory review and approval processes, which can be lengthy and uncertain.
• Competition [medium — market]: The biopharmaceutical market is highly competitive, with many companies developing similar products, which could impact market share and pricing.

Key Dates

• 2024-03-31: Quarterly Period End — Reporting of financial results for Q1 2024.
• 2024-05-13: Filing Date — Submission of the 10-Q report to the SEC.

Key Financial Figures

• $0.001 — nge on which registered Common stock, $0.001 par value STRO The Nasdaq Stock Mar

Filing Documents

• stro-20240331.htm (10-Q) — 2238KB
• stro-ex10_1.htm (EX-10.1) — 977KB
• stro-ex31_1.htm (EX-31.1) — 14KB
• stro-ex31_2.htm (EX-31.2) — 14KB
• stro-ex32_1.htm (EX-32.1) — 7KB
• stro-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-058718.txt (&nbsp;) — 10212KB
• stro-20240331.xsd (EX-101.SCH) — 1463KB
• stro-20240331_htm.xml (XML) — 1567KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 2 Condensed Balance Sheets 2 Condensed Statements of Operations 3 Condensed Statements of Comprehensive Loss 4 Condensed Statements of Stockholders' Equity 5 Condensed Statements of Cash Flows 6 Notes to Unaudited Interim Condensed Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 36 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 89 Item 3. Defaults Upon Senior Securities 89 Item 4. Mine Safety Disclosures 89 Item 5. Other Information 89 Item 6. Exhibits 90

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements. Sutro Biopharma, Inc. Condensed Bal ance Sheets (Unaudited) (In thousands, except share and per share data) March 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 65,218 $ 69,268 Marketable securities 202,384 264,413 Investment in equity securities 45,616 41,937 Accounts receivable 31,300 36,078 Prepaid expenses and other current assets 10,064 9,846 Total current assets 354,582 421,542 Property and equipment, net 20,630 21,940 Operating lease right-of-use assets 21,594 22,815 Other non-current assets 5,739 3,567 Restricted cash 857 872 Total assets $ 403,402 $ 470,736 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 7,511 $ 9,440 Accrued compensation 7,077 14,686 Deferred revenue - current 20,502 20,666 Operating lease liability - current 6,673 6,420 Debt - current - 4,061 Accrued expenses and other current liabilities 37,746 38,473 Total current liabilities 79,509 93,746 Deferred revenue - non-current 46,313 53,379 Operating lease liability - non-current 21,397 23,154 Deferred royalty obligation related to the sale of future royalties 156,465 149,114 Other non-current liabilities 1,694 1,694 Total liabilities 305,378 321,087 Commitments and contingencies (Note 6) Stockholders' equity: Preferred stock, $ 0.001 par value — 10,000,000 shares authorized as of March 31, 2024 and December 31, 2023; no shares issued and outstanding as of March 31, 2024 and December 31, 2023 - - Common stock, $ 0.001 par value — 300,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 62,456,546 and 61,009,829 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 62 61 Additional paid-in-capital 715,696 708,975 Accumulated other comprehensive income (loss)

View Full Filing

View this 10-Q filing on SEC EDGAR