Sutro Biopharma Reports 148% Revenue Growth, Net Loss Improvement in Q2 2025

Sutro Biopharma, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated total revenue of $63.7 million for the quarter, a substantial increase of 148% compared to $25.7 million in the same period last year. For the first half of 2025, revenue reached $81.1 million, up 110% from $38.7 million in the first half of 2024. This growth was primarily driven by a $56 million increase from Ipsen, which included the derecognition of $53.2 million in deferred revenue following Ipsen's decision not to advance the STRO-003 program. However, revenue from Astellas and Vaxcyte saw declines, reflecting ongoing performance on partially unsatisfied obligations.

Despite the revenue increase, Sutro Biopharma reported a net loss of $11.5 million for the second quarter, a 76% improvement from a net loss of $48 million in the same quarter of 2024. The loss for the first half of 2025 was $87.5 million, down from $106.2 million in the prior year. The company attributed the reduced losses to a 38% decrease in research and development expenses, which fell to $38.3 million from $62 million year-over-year, as well as a reduction in general and administrative costs.

Strategically, Sutro Biopharma has undergone a significant restructuring plan initiated in March 2025, which included a workforce reduction of approximately 50% and a shift in focus towards its three preclinical programs, particularly STRO-004. The company plans to exit its internal GMP manufacturing facility by the end of 2025, opting instead for external manufacturing partnerships. The restructuring has resulted in $39.5 million in related costs for the first half of 2025, including severance and clinical trial expenses associated with deprioritized programs.

As of June 30, 2025, Sutro Biopharma reported total assets of $262.4 million, a decrease from $387.2 million at the end of 2024, primarily due to a reduction in cash and cash equivalents, which fell to $64 million from $190.3 million. The company’s accumulated deficit increased to $874.3 million, reflecting ongoing operational losses. Sutro Biopharma has indicated that it will need to raise additional capital to support its research and development activities and operations in the future.

Looking ahead, Sutro Biopharma anticipates continued investment in its preclinical pipeline, with plans to file an Investigational New Drug (IND) application for STRO-004 in the second half of 2025. The company believes its existing cash, cash equivalents, and marketable securities will sustain operations for at least the next 12 months, but it acknowledges the need for further financing to advance its product candidates and maintain operational viability.