Sutro Biopharma (STRO) announced the completion of a strategic portfolio review resulting in the prioritization of its three wholly-owned preclinical programs in its next-generation ADC pipeline, beginning with its potentially best-in-class exatecan ADC targeting Tissue Factor, STRO-004, expected to enter the clinic in the second half of 2025. Additionally, the company announced that it is deprioritizing additional investment into development of luvelta across all indications and is reducing headcount by nearly 50%. The company will continue to explore global out-licensing opportunities for luvelta, as Sutro still believes in its potential to provide significant benefit to patients with unmet need. Further, given Sutro’s significant progress in fully externalizing its cell-free manufacturing to scale, the company intends to exit its internal GMP manufacturing facility by year-end. As a result of this strategic review and reprioritization, the company’s cash runway is expected into at least the fourth quarter of 2026, excluding anticipated milestones from existing collaborations. The company also announced that Bill Newell and Sutro’s board of directors have mutually agreed that it is the right time to transition leadership. Jane Chung, president and COO, will assume the responsibilities of CEO and board member from Newell, effective immediately. Newell will continue to be available at the company’s request in an advisory capacity through the transition.