Jane, tell us a bit about yourself and what made you join Sutro Biopharma?
I have been in the pharmaceutical industry for over 20 years, working at companies like Genentech, Onyx, and AstraZeneca. My experience at AstraZeneca, particularly during the Covid-19 pandemic, was transformative. I was part of the team that brought the Covid-19 vaccine to the market. This experience opened my eyes to the potential of cutting-edge biotech, such as mRNA technology, in saving lives.
When I learned about Sutro Biopharma's precise protein design technology and their development of pneumococcal vaccines, it intrigued me. Sutro's technology has already proven its value in vaccine development and is now pivoting to oncology, with a focus on Antibody-Drug Conjugates (ADCs), an area I see as the next big innovation in cancer care. The company's transition from a platform company to one more focused on clinical development and commercialization was particularly attractive to me, as I wanted to be part of this growth phase in a smaller, biotech setting.
Why did the company refocus towards oncology?
At Sutro, we recognized the need to specialize, as smaller companies often do. While vaccines are important, our expertise was stronger in oncology, leading us to focus more on this area. This decision was driven by our capabilities and resources. Large companies can diversify across many therapeutic areas, but smaller companies like Sutro must choose their battles wisely. Our background in oncology made it a natural choice for us, leading to the strategic decision.
Could you explain the promise of ADCs and, in that context, the sense in which Sutro's approach is unique?
ADCs represent a form of targeted chemotherapy. They specifically target cancer cells, sparing healthy ones, thereby improving safety and effectiveness. ADCs are complex molecules comprising an antibody that binds to a cancer cell, a linker, and a cytotoxic payload. This 'smart bomb' technology targets cancer cells with high precision.
What sets Sutro apart is our cell-free drug design process, allowing us to introduce non-natural amino acids and create ADCs with higher potencies and dual payloads.
This approach exceeds the limitations of conventional therapies, offering consistent and potent delivery directly to cancer cells.
Your technology “not only kills tumors but also elicits immunogenic cell death”. Could you elaborate on that?
Our lead therapy, Luvelta, uses a hemiasterlin payload, which not only targets cancer cells but also engages the immune system, enhancing the effectiveness of the treatment. We are exploring dual payloads, integrating immune-stimulatory agents to further activate the immune system. This approach combines the potency of modern chemotherapy and ADCs with the benefits of immunotherapy, aiming to overcome resistance and adapt to the evolving nature of cancer.
What does your current pipeline look like?
Sutro has a diverse and expanding pipeline. Our lead ADC therapy, Luvelta, is currently in registrational trials, with ongoing projects in ovarian cancer and planned trials for pediatric AML. Beyond that, we have ADCs targeting ROR1 and tissue factor, both showing promise with payloads and improved side effect profiles. Our partnerships, notably with Astellas and Merck, further demonstrate the versatility of our platform, extending beyond ADCs to cytokines and potentially cancer vaccines. These collaborations reflect our commitment to leveraging our platform across various oncological applications.
Our payloads, particularly in our lead therapy Luvelta, demonstrate significant potential across various cancers. This includes activity in ovarian, endometrial, and certain pediatric cancers, with promising preclinical data in lung cancer. Our ROR1 and tissue factor ADCs are designed for solid tumors, with specific considerations for mitigating side effects. Our focus is increasingly on solid tumors, where there's a high unmet need. This focus, coupled with our innovative technology, positions us well for future partnerships and expanding our therapeutic reach.
There is much talk nowadays of a post-pandemic slump in the biotech sector. How has the depressed investment climate affected Sutro?
The post-pandemic period has indeed impacted the investment climate for biotech companies, including Sutro. This phase, characterized by a decline in investor enthusiasm after the pandemic's height, has seen a general downturn in biotech stocks. Despite no direct connection between the pandemic and oncology, our stocks were not immune to this trend. However, I believe the scenario is changing as the market stabilizes and the focus shifts back to innovation and long-term scientific advancements.
How do you see this environment evolving for biotech companies?
The economic uncertainty and increased interest rates have made access to capital more difficult. This affects the ability to sustain clinical development programs. Despite these challenges, the biotech industry's resilience during COVID-19 is a testament to its potential. Continuous investment in innovation remains crucial for future advancements. As the market stabilizes, I anticipate a renewed focus on supporting and valuing scientific progress, essential for bringing new treatments to fruition.
What is your perspective on the Inflation Reduction Act’s impact on smaller biotechs?
The Inflation Reduction Act presents significant challenges for the pharmaceutical industry, especially for smaller and mid-sized biotech companies. The high risk associated with drug development, where a majority of experimental drugs do not reach the market, complicates the financial models of these companies. The Act's implications may force biotechs to deprioritize certain projects, impacting their pipelines. Larger pharmaceutical companies, with more diverse revenue streams and broader pipelines, might be less affected. However, smaller companies, with limited portfolios, face greater risks and might need to seek quicker partnerships or alternative financing methods. It is important to recognize that the Act affects not just big pharma but the entire spectrum of the biotech industry.
Where do you see Sutro Biopharma in the next five years?
Looking ahead, our goal is for Sutro to be recognized as a leader in cancer therapy innovation. Our investment in technology and platform development is substantial, as we believe in the power of technology to revolutionize cancer treatments. The digital revolution has transformed many aspects of our lives, and we see a similar potential in applying advanced technology to healthcare. We aim to transform the landscape of cancer therapy, reducing the fear associated with the disease and, ultimately, progressing towards finding a cure. Sutro's vision is to make a significant impact on the overall health of humanity through groundbreaking cancer therapies.
