Organization and Principal Activities
|9 Months Ended|
Sep. 30, 2022
|Disclosure Text Block [Abstract]|
|Organization and Principal Activities||
1. Organization and Principal Activities
Description of Business
Sutro Biopharma, Inc. (the “Company”), is a clinical-stage oncology company developing site-specific and novel-format antibody drug conjugates, or ADCs. The Company was incorporated on April 21, 2003 and is headquartered in South San Francisco, California.
The Company operates in one business segment, the development of biopharmaceutical products.
During the three and nine months ended September 30, 2022, the Company sold an aggregate of 5,746,849 and 7,463,845 shares, respectively, of its common stock through its At-the-Market Facility (“ATM Facility”) pursuant to its Open Market Sales AgreementSM dated April 2, 2021 with Jefferies LLC (“Jefferies”), as sales agent (the “Sales Agreement”).
During the three and nine months ended September 30, 2022, the gross proceeds from these sales were approximately $33.6 million and $42.5 million, respectively, before deducting fees of approximately $0.9 million and $1.6 million, respectively, resulting in net proceeds of approximately $32.7 million and $40.9 million, respectively, to the Company.
The Company has incurred significant losses and has negative cash flows from operations. As of September 30, 2022, the Company had an accumulated deficit of $418.0 million. Management expects to continue to incur additional substantial losses in the foreseeable future as a result of the Company’s research and development and other operational activities.
As of September 30, 2022, the Company had unrestricted cash, cash equivalents and marketable securities of $287.3 million, which is available to fund future operations. The Company will need to raise additional capital to support the completion of its research and development activities and to support its operations.
The Company believes that its unrestricted cash, cash equivalents and marketable securities as of September 30, 2022 will enable the Company to maintain its operations for a period of at least 12 months following the filing date of its financial statements.
The entire disclosure for the nature of an entity's business, major products or services, principal markets including location, and the relative importance of its operations in each business and the basis for the determination, including but not limited to, assets, revenues, or earnings. For an entity that has not commenced principal operations, disclosures about the risks and uncertainties related to the activities in which the entity is currently engaged and an understanding of what those activities are being directed toward.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef