Buy Rating on Sutro Biopharma: Promising Trials and Market Expansion Potential for Luvelta

In a report released today, Andrew Fein from H.C. Wainwright reiterated a Buy rating on Sutro Biopharma (STRO – Research Report), with a price target of $12.00.

Andrew Fein has given his Buy rating due to a combination of factors pertaining to the strong progress of Sutro Biopharma’s drug Luvelta across multiple oncogenic indications. Fein points to the completion of the first part of a pivotal trial for platinum-resistant ovarian cancer, with anticipation of broad site participation internationally by year-end 2024. He suggests that Luvelta shows promise in demonstrating significant efficacy, potentially exceeding that of its competitor Elahere, especially in patients with high expression of FolRα, where Luvelta may offer better safety. Furthermore, the potential for expansion into additional cancers, like endometrial and non-small cell lung cancer, could significantly increase Luvelta’s market value, with plans to submit an IND for NSCLC in the first half of 2025.

Additionally, Fein underscores the promising data from the combination of Luvelta with bevacizumab, which could lead to an expanded patient population in ovarian cancer treatment. This combination therapy has shown encouraging results in terms of overall response rates and median progression-free survival across various levels of FolRα expression, without raising new safety concerns. The manageable safety profile, particularly regarding neutropenia, strengthens the case for Luvelta’s use in a broader treatment landscape. These factors, along with expectations for upcoming trials and potential first approvals, form the basis of Fein’s Buy recommendation and a $12 price target for Sutro Biopharma’s stock.

Fein covers the Healthcare sector, focusing on stocks such as Amylyx Pharmaceuticals Inc, Blueprint Medicines, and Foghorn Therapeutics. According to TipRanks, Fein has an average return of 12.0% and a 48.78% success rate on recommended stocks.

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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.