RE:RE:RE:RE:China deal I looked at Sutro's corporate presentation. If you remove the cash position for both companies, you can see that the SP of Thera is not undervalued when you compare it to Sutro. They have a wider more advanced pipeline with good results in dose escalation phase I. But contrary to Thera's trial, it is all comers with ovarian cancer. So not selected for folate receptor alpha. They got 10 partial responses out of 43 patients, including one complete response. Thera will not come close to that out of phase Ia with all comers for any cancer, and less than half the number of patients and a cytotoxic drug (docetaxel) to which most patients resist when used alone. Sutro's ADC is using a proprietary cytotoxic drug likely more potent than docetaxel. Sutro are where we hope Thera will be in 2023. That being said, folate receptor alpha does not seem to be as good a target as sortilin, on paper. It is not overexpressed in that many cancers and i did not find anything suggesting higher overexpression in more advanced cancer. That being said, they have the proof of concept, which SORT1+ still does not have in humans. But even with this proof of concept, Sutro's stock price is not skyrocketing. That should temper expectation for Thera phase Ia results. Personnally I hope for efficacy in a few patients to establish proof of concept.
SPCEO1 wrote: Somewhat like the other China partnership noted here recently, the stock of STRO is not really benefitting much. The upfront payment alone for STRO is worth nearly $1 per share but the stock is only up about half of that. Does the market not value Chinese partnership deals all that highly?
STRO is an intersesting comparison to THTX. They have about $60 million in revenues from some other drug(s) they market vs $70 million for THTX. Prior to the partnership deal, they had $245 million in cash vs. only $42 million for THTX if I recall correctly. STRO has a market cap more than 2x THTX and has 9 analysts covering the stock - all with Buy ratings and with price targets at least 2x the current share price.
Now, I have just taken a very quick look at some basic info and really do not know all that STRO might have going on. Much of the higher market cap of STRO versus THTX can be explained by its much higher cash position but it is also burning through that cash at a much, much higher clip than THTX (free cash flow for STRO in the last 12 months is -$93 million versus -13 million for THTX).
scarlet1967 wrote: Often we speculate when a deal should be done earlier with less upfront payment, loyalties etc or later on when there has been some results, This company although they are further in process with their trial than THTX decided based on most likely some encouraging results so far to close a deal relatively early only based on interim results from their phase1 trial. In case of THTX if and when their results are also encouraging it does make sense to chase a similar deal overseas and China would be good place imo because they won't have the resources to sell their potential approved drug in North America let alone China also they do need funds. Let's hope on the back of good results they strike a good deal.
qwerty22 wrote: Such a nice deal for them to secure.