Sutro Biopharma R&D Surges in Q2 2024

TL;DR

Sutro Biopharma's R&D spend jumped to $75.6M in H1 2024 vs $52.4M last year. Big bets on pipeline.

AI Summary

Sutro Biopharma, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported research and development expenses of $75.6 million for the six months ended June 30, 2024, a significant increase from $52.4 million in the same period of 2023. General and administrative expenses also rose to $31.6 million for the first six months of 2024, up from $26.8 million in 2023. The filing also references collaborations with Bristol Myers Squibb Company and Astellas Pharma Inc.

Why It Matters

Increased R&D spending suggests Sutro Biopharma is investing heavily in its pipeline, potentially leading to future drug development milestones or setbacks.

Risk Assessment

Risk Level: medium — The significant increase in R&D expenses without a corresponding increase in revenue indicates substantial investment and potential future dilution or reliance on external funding.

Key Numbers

• $75.6M — R&D Expenses (H1 2024) (Represents significant investment in pipeline development.)
• $52.4M — R&D Expenses (H1 2023) (Provides comparison for R&D spending growth.)
• $31.6M — G&A Expenses (H1 2024) (Indicates operational costs for the period.)
• $26.8M — G&A Expenses (H1 2023) (Provides comparison for G&A spending growth.)

Key Players & Entities

• Sutro Biopharma, Inc. (company) — Filer of the 10-Q
• Bristol Myers Squibb Company (company) — Collaboration partner
• Astellas Pharma Inc (company) — Collaboration partner
• $75.6 million (dollar_amount) — R&D expenses for H1 2024
• $52.4 million (dollar_amount) — R&D expenses for H1 2023
• $31.6 million (dollar_amount) — G&A expenses for H1 2024
• $26.8 million (dollar_amount) — G&A expenses for H1 2023

FAQ

Key Financial Figures

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

Filing Documents

• stro-20240630.htm (10-Q) — 2755KB
• stro-ex10_1.htm (EX-10.1) — 120KB
• stro-ex31_1.htm (EX-31.1) — 15KB
• stro-ex31_2.htm (EX-31.2) — 15KB
• stro-ex32_1.htm (EX-32.1) — 7KB
• stro-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-096336.txt ( ) — 10380KB
• stro-20240630.xsd (EX-101.SCH) — 1398KB
• stro-20240630_htm.xml (XML) — 1929KB

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 37 Item 4.

Controls and Procedures

Controls and Procedures 38 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 91 Item 3. Defaults Upon Senior Securities 91 Item 4. Mine Safety Disclosures 91 Item 5. Other Information 92 Item 6. Exhibits 93

—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) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 90,788 $ 69,268 Marketable securities 284,780 264,413 Investment in equity securities 50,424 41,937 Accounts receivable 6,950 36,078 Prepaid expenses and other current assets 10,533 9,846 Total current assets 443,475 421,542 Property and equipment, net 19,414 21,940 Operating lease right-of-use assets 20,333 22,815 Other non-current assets 4,964 3,567 Restricted cash 857 872 Total assets $ 489,043 $ 470,736 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 6,086 $ 9,440 Accrued compensation 9,940 14,686 Deferred revenue - current 73,964 20,666 Operating lease liability - current 6,933 6,420 Debt - current - 4,061 Accrued expenses and other current liabilities 33,062 38,473 Total current liabilities 129,985 93,746 Deferred revenue - non-current 21,690 53,379 Operating lease liability - non-current 19,593 23,154 Deferred royalty obligation related to the sale of future royalties 163,905 149,114 Other non-current liabilities 1,694 1,694 Total liabilities 336,867 321,087 Commitments and contingencies (Note 6) Stockholders' equity: Preferred stock, $ 0.001 par value — 10,000,000 shares authorized as of June 30, 2024 and December 31, 2023; no shares issued and outstanding as of June 30, 2024 and December 31, 2023 - - Common stock, $ 0.001 par value — 300,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 81,861,584 and 61,009,829 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 82 61 Additional paid-in-capital 817,896 708,975 Accumulated other comprehensive (loss) income ( 163

View Full Filing

View this 10-Q filing on SEC EDGAR