UPDATE: H.C. Wainwright Starts Sutro Biopharma (STRO) at Buy
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H.C. Wainwright analyst Andrew Fein initiates coverage on Sutro Biopharma (NASDAQ: STRO) with a Buy rating and a price target of $35.00.
The analyst comments "XpressCF platform generates formidable ADC candidates for oncology. We believe Sutro Biopharma can continue to be a standout performer in the antibody-drug conjugate (ADC) space, primarily driven by their novel cell-free (CF) XpressCF platform, which has generated multiple clinical candidates to date. Sutro’s XpressCF is a scalable cGMP platform able to generate various biologics (ADCs, mAbs and bispecific antibodies) using cellular extracts combined with a target DNA sequence resulting in in vitro translation. The XpressCF platform tackles one of the major hurdles in the production of ADCs (homogenous ADC production) by incorporating non-natural amino acids (nnAA) which direct site-specific attachment of a linker + warhead to the ADC. We ascribe near term value to Sutro’s two wholly owned assets, lead program STRO-002 (folate receptor alpha (FolRa-α) ADC) in ovarian cancer (OC) and STRO-001 (CD74 ADC) in Non-Hodgkin’s lymphoma (NHL) and multiple myeloma (MM), while the XpressCF platform could sustain longer term growth by continuing to attract high profile partnerships. While recent data presented during ASH 2020 and ASCO 2021 for ‘001 and ‘002 signal initial positive efficacy, we believe the momentum from both programs can continue and manifest as deeper and broadening responses in their respective populations. We believe that STRO-002 holds the potential to become a best-in-class therapy for patients with platinum-resistant ovarian cancers (PROC), while STRO-001 is on track to become a first-in-class treatment to potentially overcome the previous challenges of resistance. Taken together, we initiate Sutro Biopharma with Buy rating and $35 PT."
Shares of Sutro Biopharma closed at $18.73 yesterday.
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