Sutro Biopharma’s Luvelta: A Promising Candidate in PROC with Expanding Clinical Trials and FDA Accelerated Approval Potential

TD Cowen analyst Tara Bancroft has maintained their bullish stance on STRO stock, giving a Buy rating on May 8.

Tara Bancroft has given her Buy rating due to a combination of factors surrounding Sutro Biopharma’s promising developments in their treatments and clinical trials. A key aspect of this optimistic outlook is the completion of enrollment for Part One of the Phase II/III REFRaME-O1 trial for Luvelta and the anticipation of an update that could affirm its potential, which is estimated to be significantly greater than its competitor, Elahere, in platinum-resistant ovarian cancer (PROC). Bancroft highlights Luvelta’s ability to serve a wider PROC patient base, with the potential to address about 80% of patients expressing folate receptor alpha (FRα), in contrast to Elahere which is limited to approximately 35%.
Additionally, the analyst points to Sutro Biopharma’s strategic expansion of the trial with plans to increase the number of active sites significantly, which could lead to more comprehensive data and a solid foundation for seeking FDA Accelerated Approval. The lack of Elahere’s availability in the EU further strengthens Sutro’s position in capturing a broader patient population. Bancroft’s report suggests that the upcoming interim analysis of the REFRaME-O1 trial might bolster the case for Accelerated Approval based on outcomes such as objective response rate, duration of response, and safety, setting a positive course for full approval that hinges on progression-free survival and overall survival metrics.

According to TipRanks, Bancroft is a 4-star analyst with an average return of 33.3% and a 44.00% success rate. Bancroft covers the Healthcare sector, focusing on stocks such as MacroGenics, Alpine Immune Sciences, and Xencor.

In another report released on May 8, Bank of America Securities also initiated coverage with a Buy rating on the stock with a $12.00 price target.

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Sutro Biopharma (STRO) Company Description:

Sutro Biopharma Inc. engages in the drug discovery, development and manufacturing of pharmaceutical products. Its products technologies include XpressCF, anti-body drug conjugates, bispecifics & engineered antibodies and cGMP facility. The company was founded by James R. Swartz and Sutanto Widjaja in June 2003 and is headquartered in South San Francisco, CA.