News briefs: Celgene deal with Sutro; Amgen pleads guilty to misbranding

US biotech firm Celgene Corp (Nasdaq: CELG) has entered a collaboration with San Francisco-based Sutra Biopharma to design and develop novel antibody drug conjugates (ADCs) and bispecific antibodies for two undisclosed targets and to manufacture a proprietary Celgene antibody.

Under the terms of the deal, Sutro will receive a “substantial” – but undisclosed - upfront payment, an equity investment in the company and payments for the completion of research, development and regulatory milestones. If all programs are successful, the deal could be worth over $500 million to Sutro. The company is also eligible to receive royalties on product sales.

In the collaboration, Sutro will be responsible for product design and production of preclinical materials using the company’s proprietary, cell-free protein synthesis technology. The hope is that Sutro will be able to make drugs with the molecular targeting capability and add-on modular capabilities of biotech drugs, but with lower cost and better efficiency than existing cell-based methods.