Sutro Biopharma and Celgene expand accord; add buyout option

Sutro Biopharma today announced it has entered into a strategic collaboration and option agreement with US biotech major Celgene (Nasdaq: CELG) to discover and develop multi-specific antibodies and antibody drug conjugates (ADCs).

This new agreement follows the 2012 collaboration between the two companies and focuses on the field of immuno-oncology, worth a potential $500 million (The Pharma Letter December 19, 2012), while further broadening the Sutro platform for discovery, development and manufacture of best-in-class biotherapeutics.

The scope of the collaboration allows the parties to systematically interrogate the immuno-oncology space, including established targets, such as PD-1 and PD-L1, as well as novel targets, using Sutro's cell-free biologics development platforms, Xpress CF and Xpress CF+. During the collaboration, after an initial period, Celgene will have the exclusive option to acquire Sutro, including rights to all Sutro-owned programs at that time, on pre-specified terms.