Sutro Biopharma Announces Pricing of $110.0 million Underwritten Offering

Rhea-AI Summary

Sutro Biopharma (Nasdaq: STRO) priced an underwritten offering of 7,868,383 common shares at $13.98 per share, expected to raise approximately $110.0 million in gross proceeds before fees. The offering is expected to close on or about February 11, 2026.

Proceeds, together with existing cash and marketable securities, are intended primarily for general corporate purposes, including funding research, clinical and process development, manufacturing, working capital, and potential acquisitions or investments. Joint bookrunning managers include Leerink Partners, TD Cowen and LifeSci Capital.

Positive

• $110.0 million gross proceeds expected
• Proceeds designated for R&D, clinical and manufacturing
• Participation from multiple existing and new institutional investors

Negative

• 7,868,383 new shares offered — potential shareholder dilution
• Net proceeds reduced by underwriting discounts, commissions and offering expenses

Key Figures

Offering size: $110.0 million Offering price: $13.98 per share Shares offered: 7,868,383 shares +5 more

8 metrics

Offering size $110.0 million Gross proceeds from underwritten common stock offering

Offering price $13.98 per share Price for underwritten common stock offering

Shares offered 7,868,383 shares Common stock offered in underwritten transaction

Pre-news price $13.98 Current price before offering press release

52-week high $21.2 Upper end of 52-week trading range pre-offering

52-week low $5.231 Lower end of 52-week trading range pre-offering

Market cap $132,220,964 Equity value before underwritten offering announcement

Q3 2025 revenue $9.7 million Revenue reported in Q3 2025 10-Q filing

Market Reality Check

Price: $13.98 Vol: Volume 63,041 is at 0.53x...

low vol

$13.98 Last Close

Volume Volume 63,041 is at 0.53x the 20-day average of 118,069, indicating subdued trading ahead of the offering. low

Technical Shares trade above the 200-day MA of 9.59 with a pre-news price of 13.98, well off the 5.231 52-week low.

Peers on Argus

Pre-news, STRO was down 9.92% while peers showed mixed moves: ENTX up 24.3%, OKY...

Pre-news, STRO was down 9.92% while peers showed mixed moves: ENTX up 24.3%, OKYO up 6.42%, ATRA up 2.47%, and IGMS and XBIT down 2.31% and 1.7%. This points to a stock-specific move rather than a sector-wide trend.

Historical Context

5 past events · Latest: Jan 07 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 07	Conference presentation	Neutral	+2.0%	J.P. Morgan Healthcare Conference presentation announcement with webcast access details.
Dec 17	Listing compliance	Positive	-6.9%	Nasdaq confirms minimum bid price compliance following prior deficiency notice.
Dec 16	Equity inducement grants	Neutral	-1.2%	Stock options and RSUs granted to new employees under inducement plan.
Dec 03	Clinical trial start	Positive	+19.2%	First cohort dosed in Phase 1 trial of STRO-004 in solid tumors.
Dec 01	Reverse stock split	Negative	-12.8%	1-for-10 reverse stock split to address Nasdaq minimum bid requirement.

Pattern Detected

Recent history shows strong positive reactions to clinical milestones while corporate/structural actions like reverse splits and compliance updates often coincided with negative price moves.

Recent Company History

Over the last few months, Sutro reported several notable events. A 1-for-10 reverse stock split on Dec 3, 2025 and subsequent Nasdaq compliance confirmation on Dec 17, 2025 both saw negative price reactions within 24 hours. In contrast, first dosing in the Phase 1 trial of STRO-004 on Dec 3, 2025 coincided with a 19.21% gain. Routine items like inducement grants and a J.P. Morgan conference presentation produced modest, mostly neutral moves. Today’s underwritten offering follows a period where financing and balance sheet topics have been prominent.

Market Pulse Summary

This announcement details an underwritten offering of 7,868,383 common shares at $13.98, targeting r...

Analysis

This announcement details an underwritten offering of 7,868,383 common shares at $13.98, targeting roughly $110.0 million in gross proceeds to support research, clinical development, manufacturing, and general corporate purposes. In prior disclosures, Sutro reported Q3 2025 revenue of $9.7 million and a net loss of $56.9 million with a stockholders’ deficit of $87.3 million. Investors may track how the added capital affects future clinical milestones, operating runway, and subsequent financing needs.

Key Terms

underwritten offering, common stock, registration statement, form s-3, +2 more

6 terms

underwritten offering financial

"announced the pricing of an underwritten offering of 7,868,383 shares"

An underwritten offering is when a bank or group of banks agrees to buy all of a company's new shares or bonds and then resell them to outside investors, guaranteeing the company will raise a specific amount of money. It matters to investors because it adds certainty that the funding will close while increasing the number of shares or debt in the market, which can lower the price per share and change each existing owner's ownership percentage—think of a wholesaler buying an entire shipment from a maker before it reaches stores.

common stock financial

"7,868,383 shares of its common stock at a price of $13.98"

Common stock represents ownership shares in a company, giving investors a stake in its success and a say in important decisions through voting rights. It is the most common type of stock traded on markets and can provide income through dividends, as well as potential for value growth. For investors, holding common stock means sharing in the company’s profits and risks.

registration statement regulatory

"pursuant to a registration statement on Form S-3 previously filed"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

form s-3 regulatory

"pursuant to a registration statement on Form S-3 previously filed"

Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.

prospectus supplement regulatory

"A prospectus supplement and accompanying prospectus relating to this offering"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

securities and exchange commission regulatory

"declared effective by the Securities and Exchange Commission (SEC)."

A national government agency that enforces rules for buying, selling and disclosing information about stocks and other investments, acting like a referee and scorekeeper for financial markets. It requires companies to share clear, regular financial and business information and investigates fraud or rule-breaking, which matters to investors because those rules and disclosures help ensure fair prices, reduce hidden risks and make it easier to compare investment choices.

AI-generated analysis. Not financial advice.

SOUTH SAN FRANCISCO, Calif., Feb. 10, 2026 (GLOBE NEWSWIRE) -- Sutro Biopharma, Inc. (Sutro or the Company) (Nasdaq: STRO), a clinical-stage oncology company pioneering site-specific and novel-format antibody drug conjugates (ADCs), today announced the pricing of an underwritten offering of 7,868,383 shares of its common stock at a price of $13.98 per share. The gross proceeds from this offering are expected to be approximately $110.0 million, before deducting underwriting discounts and commissions and other offering expenses payable by Sutro. All of the shares of common stock are being offered by Sutro. The offering is expected to close on or about February 11, 2026, subject to the satisfaction of customary closing conditions.

The offering includes participation from new and existing investors, including BVF Partners L.P., Samsara BioCapital, Coastlands Capital, Eventide Asset Management, Perceptive Advisors, RA Capital Management, ADAR1 Capital Management, Affinity Asset Advisors and Acuta Capital Partners.

Leerink Partners, TD Cowen and LifeSci Capital are acting as joint bookrunning managers for the proposed offering.

Sutro intends to use the net proceeds of this offering, together with its existing cash, cash equivalents and marketable securities, primarily for general corporate purposes, which may include funding research, clinical and process development and manufacturing of its product candidates, increasing its working capital, acquisitions or investments in businesses, products or technologies that are complementary to the Company, capital expenditures and other general corporate purposes.

The securities are being offered by Sutro pursuant to a registration statement on Form S-3 previously filed and declared effective by the Securities and Exchange Commission (SEC). A prospectus supplement and accompanying prospectus relating to this offering will be filed with the SEC. Copies of the prospectus supplement and the accompanying prospectus relating to this offering, may also be obtained, when available, from: Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com; TD Securities (USA) LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at TDManualrequest@broadridge.com; or LifeSci Capital LLC, 1700 Broadway, 40th Floor, New York, NY 10019, or by email at compliance@lifescicapital.com Electronic copies of the prospectus supplement and accompanying prospectus will also be available on the website of the SEC at http://www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Sutro, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Sutro Biopharma

Sutro Biopharma, Inc. is advancing a next-generation antibody-drug conjugate (ADC) platform designed to deliver single- and dual-payload ADCs that enable meaningful breakthroughs for patients with cancer. By fully optimizing the antibody, linker, and payload, Sutro’s cell-free platform produces ADCs that are engineered to improve drug exposure, reduce side effects, and expand the range of treatable tumor types. With unique capabilities in dual-payload ADCs, Sutro aims to overcome treatment resistance and redefine what’s possible in cancer therapy. The Company’s pipeline of single- and dual-payload ADCs targets large oncology markets with limited treatment options and significant need for improved therapies.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements the Company makes regarding the satisfaction of customary closing conditions related to the offering and sale of securities, the Company’s ability to complete the offering, anticipated gross proceeds from the offering and expected use of proceeds; anticipated preclinical and clinical development activities, timing of announcements of clinical results, potential efficacy, safety and benefits of STRO-004, potential insights gained and benefits of the Phase 1 trial design; potential benefits of the Company’s other product candidates and platform, and potential market opportunities for the Company’s product candidates. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, the Company cannot guarantee future events, results, actions, levels of activity, performance or achievements, and the timing and results of biotechnology development and potential regulatory approval is inherently uncertain. Forward-looking statements are subject to risks and uncertainties that may cause the Company’s actual activities or results to differ significantly from those expressed in any forward-looking statement, including risks and uncertainties related to the Company’s expectation of market conditions and the satisfaction of customary closing conditions related to the offering, the Company’s ability to complete the offering and expected use of proceeds, the Company’s ability to advance its product candidates, the receipt and timing of potential regulatory designations, approvals and commercialization of product candidates, the market size for the Company’s product candidates to be smaller than anticipated, clinical trial sites, supply chain and manufacturing facilities, the Company’s ability to obtain, maintain and recognize the benefits of certain designations received by product candidates, the timing and results of preclinical and clinical trials, the Company’s ability to fund development activities and achieve development goals, the Company’s ability to protect intellectual property, and the Company’s commercial collaborations with third parties and other risks and uncertainties described under the heading “Risk Factors” in documents the Company files from time to time with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Investor Contact
Emily White
Sutro Biopharma
(650) 823-7681
ewhite@sutrobio.com

Media Contact
Amy Bonanno
Lyra Strategic Advisory
abonanno@lyraadvisory.com

FAQ

How many shares is Sutro Biopharma (STRO) offering and at what price?

Sutro is offering 7,868,383 shares at $13.98 per share. According to Sutro, this pricing yields approximately $110.0 million in gross proceeds before underwriting discounts and offering expenses.

When will the STRO underwritten offering close and who are the bookrunners?

The offering is expected to close on or about February 11, 2026. According to Sutro, joint bookrunning managers are Leerink Partners, TD Cowen and LifeSci Capital.

What will Sutro Biopharma (STRO) use the offering proceeds for?

Proceeds will be used primarily for general corporate purposes, including research, clinical and manufacturing. According to Sutro, funds may also support working capital, acquisitions, investments and capital expenditures.

Does the STRO offering include participation from institutional investors?

Yes, the offering includes participation from new and existing institutional investors. According to Sutro, participants include BVF Partners, Samsara BioCapital, Coastlands Capital and several other named firms.

Where can investors obtain the prospectus for the STRO offering?

Investors can obtain the prospectus from the listed bookrunners and the SEC website. According to Sutro, electronic copies will be available on www.sec.gov and from the underwriting firms when available.