Sutro Biopharma out-licenses STRO-002 in Greater China

Shares of US drug developer Sutro Biopharma (Nasdaq: STRO) were up more than 8% at $15.77 by mid-morning, after the company announced an exclusive license agreement with Tasly Biopharmaceuticals, a holding subsidiary of Tasly Pharmaceutical Group (SHA: 600535), for the development and commercialization of STRO-002 in Greater China, consisting of mainland China, Hong Kong, Macau and Taiwan.

STRO-002 is a FolRα-targeting antibody-drug conjugate (ADC), currently in clinical studies for patients with ovarian and endometrial cancers in the U.S. and Europe.

Under the terms of the agreement, Sutro will receive an upfront payment of $40 million and be eligible to receive potentially up to $345 million in development and commercial milestone payments. Tasly will pursue the clinical development, regulatory approval, and commercialization of STRO-002 in Greater China for ovarian and endometrial cancers, with the potential to expand to further oncological indications including non-small cell lung cancer (NSCLC) and triple-negative breast cancer (TNBC).