H.C. Wainwright downgraded Sutro Biopharma (STRO) to Neutral from Buy with a price target of $2, down from $12, after the company announced a strategic realignment focused on advancing its next-generation antibody-drug conjugate pipeline while deprioritizing luvelta due to financial constraints. While “surprised” by the announcement, the firm adds that the news “does not come as complete surprise” given the pressure from the first approval of a Folate Receptor-alpha ADC, Elahare, in the platinum resistant ovarian cancer setting, where luvelta is also being investigated.
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