Sutro Biopharma (NASDAQ:STRO) is a company focused on clinical-stage drug discovery, development and manufacturing. Sutro pioneer a compelling and unique way of discovering, developing and manufacturing therapeutics. Their focus is aimed primarily on next-generation cancer therapeutics – antibody drug conjugates, bispecific antibodies and cytokine derivatives.

Collaboration

On June 27th, the company announced that they would be entering into a strategic worldwide collaboration with Astellas Pharma to advance novel immunostimulatory Antibody-Drug Conjugates (iADCs).

Sutro will receive an upfront payment of $90M to develop iADCs for three biological targets and may be eligible to receive up to an additional $422.5M in development, regulatory and commercial milestones for each product candidate, plus royalties.

Technicals

Since this news came out, STRO has seen bullish price action. In the pre-market that followed the announcement, the price traded at $7.30, market out on the chart. The price continued to consolidate in a range between $5-$5.40.

Yesterday saw the price break above this level. We are looking for some continuation in price now this resistance has broken. We have $6.50 as a target and then $7.30.

Chart provided by TradingView

The market cap for STRO is currently $260M and the short float is 11%.

Overview

We like this technical setup for a further move. This could provide both day trade opportunities and a swing idea.

Alongside the resistance areas noted above, the price rejected $6 in pre-market this morning. But after yesterdays close above $5.40, we may see increased volume as traders rush in for the rest of this move.

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