Sutro Biopharma, Inc. reported a net loss of $227.4 million for the year ended December 31, 2024, compared to a net loss of $106.8 million in 2023. The 2024 loss included a realized gain of $32.1 million from the sale of Vaxcyte common stock. Revenue decreased by $91.7 million (60%) year-over-year, primarily due to a significant decrease in revenue from Vaxcyte, offset partially by increased revenue from Astellas. Research and development expenses increased by $71.6 million (40%), while general and administrative expenses decreased by $14.1 million (23%). The company attributed the changes to increased CMO-related activities and strategic resource reprioritization.
Significant changes in the company's financial performance were driven by several factors. The decrease in Vaxcyte revenue stemmed from a $97.5 million upfront and option exercise payment recognized in 2023, and a decrease in research and development services and materials supply. Decreases in revenue from BMS and Merck were attributed to the termination of clinical development of their respective licensed candidates. Conversely, the increase in Astellas revenue resulted from ongoing performance related to partially unsatisfied performance obligations, including a cumulative catch-up adjustment of $17.8 million.
During 2024, Sutro Biopharma entered into an exclusive license agreement with Ipsen, licensing the rights to develop and commercialize STRO-003 for $50 million upfront, plus potential milestone payments and royalties. Ipsen also purchased 4,827,373 shares of Sutro Biopharma's common stock for $25 million. The company also completed an underwritten offering, raising approximately $75 million in gross proceeds. In March 2025, the company conducted a strategic portfolio review, resulting in a decision to deprioritize investment in luvelta development and a workforce reduction of approximately 50%. The company also plans to wind down its San Carlos manufacturing facility by the end of 2025.
As of December 31, 2024, Sutro Biopharma had 310 full-time employees and 28 full-time contract employees, before the March 2025 workforce reduction. The company's cash, cash equivalents, and marketable securities totaled $316.9 million. The company anticipates needing additional funding to advance its product candidates through clinical development and commercialization. The company expects to seek additional funding through collaborations, equity offerings, or debt financing.
The company anticipates submitting an Investigational New Drug Application (IND) for STRO-004, its lead preclinical product candidate, in the second half of 2025. The company also anticipates filing three INDs over the next three years. The company's outlook indicates continued operating losses for the foreseeable future, with expenses expected to increase as product candidates advance through development and commercialization efforts are undertaken.
About SUTRO BIOPHARMA, INC.
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