Sutro Biopharma Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Sutro Biopharma (NASDAQ: STRO) announced the grant of stock options and restricted stock units (RSUs) to attract new employees. On February 15, 2023, the Compensation Committee approved 90,000 stock options and 130,000 RSUs as part of its 2021 Equity Inducement Plan. The RSUs and options will vest over four years, subject to continued employment. Sutro is focused on developing novel antibody-drug conjugates (ADCs) targeting various cancers, with candidates like STRO-002 and STRO-001 currently in clinical studies. The company's strategic collaborations with major pharmaceutical firms bolster its pipeline, including treatments for multiple myeloma and solid tumors.

Positive

• Granted 90,000 stock options and 130,000 RSUs to enhance employee recruitment.
• Equity grants align with Nasdaq's guidelines, promoting governance.
• Strong clinical pipeline with ADCs like STRO-002 and STRO-001 in trials.

Negative

• None.

SOUTH SAN FRANCISCO, Calif., Feb. 17, 2023 (GLOBE NEWSWIRE) -- Sutro Biopharma, Inc. (Sutro or the Company) (NASDAQ: STRO), a clinical-stage oncology company pioneering site-specific and novel-format antibody drug conjugates (ADCs), today announced that on February 15, 2023, the Compensation Committee of Sutro’s Board of Directors granted 90,000 shares of Sutro Biopharma stock options and 130,000 restricted stock units (RSUs) of Sutro common stock. These grants were made as an inducement material to the employees’ acceptance of employment with Sutro and were approved by the Compensation Committee of Sutro’s Board of Directors in accordance with Nasdaq Listing Rule 5635(c)(4).

The RSUs and stock options are subject to the terms and conditions of Sutro’s 2021 Equity Inducement Plan. One-fourth of the total number of shares subject to the RSUs will vest on the one-year anniversary of the employee’s hire date and annually thereafter until fully vested on the fourth anniversary, subject to the employee’s continued service with Sutro on each such vesting date. One-fourth of the total number of shares underlying the stock options will vest on the one-year anniversary of the employee’s hire date and 1/48^th of the total number of shares underlying the stock options will vest each month thereafter until fully vested on the fourth anniversary of the employee’s hire date, subject to the employee’s continued service with Sutro on each such vesting date. The stock options have a term of ten years and an exercise price equal to the closing price of Sutro’s common stock on the grant date as reported by The Nasdaq Stock Market.

About Sutro Biopharma

Sutro Biopharma, Inc., headquartered in South San Francisco, is a clinical-stage oncology company pioneering site-specific and novel-format antibody drug conjugates (ADCs). Sutro has two wholly owned ADCs in the clinic—luveltamab tazevibulin (STRO-002 or luvelta), a folate receptor alpha (FolRα)-targeting ADC, in clinical studies for ovarian and endometrial cancers; and STRO-001, a CD74-targeting ADC, in clinical studies for B-cell malignancies. Additionally, Sutro is collaborating with Bristol Myers Squibb (BMS) on CC-99712, a BCMA-targeting ADC in the clinic for patients with multiple myeloma; with Merck KGaA, Darmstadt, Germany, known as EMD Serono in the U.S. and Canada (EMD Serono), on M1231, a MUC1-EGFR bispecific ADC in clinical studies for patients with solid tumors, particularly non-small cell lung cancer (NSCLC) and esophageal squamous cell carcinoma; with Merck, known as MSD outside of the United States and Canada, on MK-1484, a selective IL-2 agonist in clinical studies as a monotherapy and in combination with pembrolizumab for the treatment of solid tumors; and with Astellas Pharma (Astellas) on novel modality, immunostimulatory antibody-drug conjugates (iADCs). Sutro’s platform technology also enabled the spin out of Vaxcyte and the creation of VAX-24, a 24-valent pneumococcal conjugate vaccine in clinical studies for the prevention of invasive pneumococcal disease. Sutro’s rational design and precise protein engineering has enabled six product candidates in the clinic. Follow Sutro on Twitter, @Sutrobio, and at www.sutrobio.com to learn more about our passion for changing the future of oncology.

Investor Contact
Annie J. Chang
Sutro Biopharma
(650) 801-5728
ajchang@sutrobio.com

Media Contact
Amy Bonanno
Solebury Strategic Communications
(914) 450-0349
abonanno@soleburystrat.com

FAQ

What recent financial decisions did Sutro Biopharma make regarding employee compensation?

On February 15, 2023, Sutro Biopharma granted stock options and RSUs to new employees to enhance recruitment.

How many stock options and RSUs were granted by Sutro Biopharma?

Sutro Biopharma granted 90,000 stock options and 130,000 restricted stock units (RSUs).

What is the purpose of the stock options and RSUs granted by Sutro Biopharma?

The stock options and RSUs were granted as an inducement for new employees to accept employment with Sutro.

What is the vesting schedule for the stock options and RSUs at Sutro Biopharma?

One-fourth of the RSUs and stock options will vest on the one-year anniversary of the hire date, with subsequent vesting until fully vested on the fourth anniversary.

What are the clinical focuses of Sutro Biopharma's drug candidates?

Sutro Biopharma focuses on developing antibody-drug conjugates (ADCs) for ovarian, endometrial cancers, and B-cell malignancies.