Stock in News Spotlight: Sutro Biopharma (NASDAQ:STRO)

Sutro Biopharma (NASDAQ:STRO) stock identified change of 30.55% away from 52-week low price and recently located move of -30.21% off 52-week high price. It has market worth of $244.66M. STRO stock has been recorded 7.60% away from 50 day moving average and -1.88% away from 200 day moving average. Moving closer, we can see that shares have been trading 5.75% off 20-day moving average.

Sutro Biopharma (NASDAQ:STRO) announced its financial results for the year ended December 31, 2018.

“This last year was a landmark one for Sutro. Our initial clinical trial for our first internal program, STRO-001 for the treatment of patients with multiple myeloma and non-Hodgkin’s lymphoma, commenced in April 2018.  Importantly, we also advanced our second clinical program, STRO-002 for the treatment of ovarian and endometrial cancers, to its clinical trial initiation in March 2019.  On the business front, we entered a significant collaboration with Merck and completed our IPO in the second half of 2018,” said Bill Newell, Sutro’s Chief Executive Officer. “In 2019, we look forward to the continued advancement of our internal programs, while working with our partners on progressing the collaboration product candidates.”

Full Year 2018 Financial Highlights

Cash, Cash Equivalents and Marketable Securities

As of December 31, 2018, Sutro had cash, cash equivalents and marketable securities of $204.5 million.

Revenue

Revenue was $38.4 million for the year ended December 31, 2018, which included collaboration revenue of $32.4 million recognized primarily from Celgene, Merck and EMD Serono, in addition to other revenue of $6.0 million. During the third and fourth quarters of 2018, Sutro began recording revenue from Merck, primarily from the $60.0 million upfront payment received by Sutro under the July 2018 collaboration and licensing agreement, which revenue will be recognized over multiple years. Future collaboration revenue from Celgene, Merck and EMD Serono, and from any future collaboration partners, will fluctuate as a result of the amount and timing of revenue recognition of upfront, milestones and other collaboration agreement payments.  

Operating Expenses

Total operating expenses for the year ended December 31, 2018, were $75.6 million compared with $71.0 million for the same period in 2017, including non-cash stock-based compensation of $2.9 million and $1.4 million, and depreciation and amortization expense of $4.5 million and $5.0 million, in the year 2018 and 2017, respectively.  Total operating expenses for the year 2018 were comprised of research and development expenses of $54.3 million and general and administrative expenses of $21.4 million, with both expense types expected to increase in 2019 as Sutro’s internal product candidates advance in clinical development and additional general and administrative expenses are incurred as a public company following its IPO that closed on October 1, 2018.  

Net Loss Per Share Calculation

Sutro financial statements following September 30, 2018, including share and per share amounts, give effect to common stock shares issued in the IPO and the Merck concurrent private placement, and common stock from the conversions of Sutro’s previously outstanding redeemable convertible preferred stock, as these transactions were completed on October 1, 2018. 

 The Healthcare sector company, Sutro Biopharma noticed change of -2.57% to $11.1 along volume of 2051 shares in recent session compared to an average volume of 27.02K. The stock observed return of 6.05% in 5 days trading activity. The stock was at 29.43% over one month performance. STRO’s shares are at 23.94% for the quarter and is now at 26.27% since this point in 2018. 

 The average volatility for the week at 6.56% and for month was at 8.48%. There are 21.48M shares outstanding and 17.98M shares are floated in market.

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