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Piper Sandler Lowers Sutro Biopharma's Price Target, Remains Positive on Ipsen Deal

2024-04-03 12:22:33.995000

Piper Sandler has lowered Sutro Biopharma's share price target to $11 from $12 but maintains an Overweight rating on the company. Sutro Biopharma has entered a partnership with Ipsen, receiving a $50 million upfront payment and a $25 million equity investment. The deal includes potential milestones exceeding $800 million and royalties in the low-double digit to mid-teens range. Sutro is enrolling participants for the Phase II segment of the REFRaME-O1 trial and plans to initiate the REFRaME-P1 trial for pediatric AML in the second half of 2024. The company also intends to submit an Investigational New Drug (IND) application for luveltamab in non-small cell lung cancer (NSCLC) in the first half of 2024. Sutro ended 2023 with $376 million in cash reserves and has raised an additional $75 million. The revised price target reflects the dilutive impact of recent financing, but Piper Sandler remains positive on Sutro Biopharma's growth prospects and pipeline development. [4dfe3de9]

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