Sutro Biopharma, based in South San Francisco, is cutting a third of its workforce in its second round of layoffs this year. The antibody-dr-g conjugate (ADC) biotech had already halved its headcount in March when it deprioritized luveltamab tazevibulin, an experimental treatment for ovarian and lung cancers, as well as a leukemia program.
The latest layoffs follow Ipsen’s decision to exit an $875 million partnership for Sutro’s ROR1-directed ADC, leaving the company to focus on pipeline programs like STRO-004, a Tissue Factor-targeting exatecan ADC expected to enter the clinic later in 2025. Sutro is also advancing two preclinical ADCs, including an integrin beta-6 candidate, with plans to move one into trials by 2027.
CEO Jane Chung, who replaced longtime leader Bill Newell in March, said the restructuring will extend Sutro’s financial runway into mid-2027, supporting early clinical milestones. The company ended June with $205.1 million in cash on hand.