SOUTH SAN FRANCISCO - Sutro Biopharma , Inc. (NASDAQ: NASDAQ:STRO), a clinical-stage company specializing in antibody drug conjugates (ADCs) for oncology, has announced the pricing of its public offering.
The company will offer 14,478,764 shares of common stock at $5.18 per share, expecting to raise approximately $75 million before fees and expenses. The offering, led by healthcare-focused institutional investors, is anticipated to close on April 4, 2024, pending customary closing conditions.
Sutro's current financial strategy includes utilizing the net proceeds alongside existing capital for various corporate endeavors. These include but are not limited to research, clinical and process development, manufacturing of product candidates, working capital, commercialization infrastructure, and potential business acquisitions or investments.
BofA Securities is the sole book-running manager for the offering, which is being made under a previously filed SEC registration statement. The prospectus and accompanying supplement detailing the offering terms will be available on the SEC's website.
Sutro Biopharma, headquartered in South San Francisco, focuses on developing precise cancer therapeutics. Its technology, including the cell-free XpressCF®, aims to benefit a broader patient demographic and enhance the patient experience. The company has several clinical stage candidates, including luveltamab tazevibulin (luvelta), a FolRα-targeting ADC currently in registrational-stage clinical studies.
The company's forward-looking statements involve risks and uncertainties, including market conditions, the completion of the offering, and the anticipated use of proceeds. These statements reflect Sutro's expectations as of the date of this release and are subject to change. The company assumes no obligation to update any forward-looking statements after the date of this release.
InvestingPro Insights
As Sutro Biopharma gears up for its public offering, investors are keenly observing the company's financial health and market performance. According to real-time data from InvestingPro, Sutro Biopharma's market capitalization stands at a modest $332.5 million. This reflects the company's position as a clinical-stage entity within the competitive biopharma sector.
InvestingPro Data reveals a significant revenue growth of 126.84% for the last twelve months as of Q4 2023, indicating a strong upward trajectory in sales. This is further underscored by a quarterly revenue growth of 1217.44% for Q4 2023, suggesting a robust short-term performance.
Despite these impressive growth figures, Sutro Biopharma's financials also show challenges. The company's gross profit margin was reported at -17.36% for the same period, which aligns with the InvestingPro Tip that the company suffers from weak gross profit margins. Additionally, the negative P/E ratio of -2.89 points to earnings difficulties, which is consistent with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year.
On the investment front, Sutro Biopharma has seen a strong return over the last six months, with a price total return of 52.14%. This could signal investor confidence in the company's long-term strategy and pipeline potential.
For those considering deeper investment analysis, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available that could help investors understand the nuances of Sutro Biopharma's financial and market position. These tips can be accessed through the InvestingPro platform at https://www.investing.com/pro/STRO.
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