Monday, TD Cowen reiterated its Buy rating on Sutro Biopharma (NASDAQ: NASDAQ:STRO), reflecting optimism about the company's cancer treatment drug, Luvelta. The firm highlighted the drug's 35% objective response rate (ORR) in an unselected patient population across multiple doses as a positive indicator, especially when compared to a competing drug, Elahere, which achieved a 44% ORR in patients with higher expression levels at an optimal dose.
The firm noted that the 56% ORR observed at the recommended phase 2 dose (RP2D) of Luvelta is particularly promising, suggesting the drug's potential for broad use in cancer treatment. This response rate is considered competitive within the industry and could play a significant role in the drug's path toward market approval.
Sutro Biopharma is expected to release comprehensive data on Luvelta at the RP2D in the first half of the year. TD Cowen anticipates that the forthcoming data will continue to show positive results and will help to solidify the drug's next steps toward registration for clinical use.
The firm's commentary underscores the significance of the upcoming data release for Sutro Biopharma, as it could confirm the drug's efficacy and safety at the RP2D. This is an important milestone for the company as it seeks to advance Luvelta through the regulatory process and eventually bring it to market.
Sutro Biopharma's stock continues to be in focus for investors as the biopharmaceutical company progresses with its clinical trials and moves closer to potential commercialization of its cancer treatment drug. The reiterated Buy rating by TD Cowen reflects confidence in the drug's clinical performance and its future prospects.
In other recent news, Sutro Biopharma has initiated a global Phase 2 clinical trial for its drug luveltamab tazevibulin, targeting non-small cell lung cancer patients. The study, named REFRαME-L1, aims to evaluate the drug's safety and efficacy in patients with previously treated advanced or metastatic conditions. In addition, the company has ongoing clinical trials for luvelta in ovarian and endometrial cancers and plans to initiate a Phase 2/3 study for pediatric acute myeloid leukemia in the latter half of 2024.
Analysts from various firms have provided feedback on Sutro Biopharma's developments. Truist Securities adjusted the company's stock price target to $15.00, maintaining a Buy rating. TD Cowen also upheld its Buy rating for the company following the completion of a significant clinical trial. Piper Sandler confirmed its Overweight rating with a consistent price target of $11.00, noting the company's strong financial footing.
These are recent developments for Sutro Biopharma, with the company also appointing Sukhi Jagpal as a new board director and Audit Committee member. The company expects to release initial data from the REFRαME-L1 study in the first half of 2025.
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