Celgene, Sutro Biopharma Agree on Potential $500 Million Deal
Biotech company Sutro Biopharmaannounced in a press release that it will be collaborating with Celgene on a deal to develop antibody drug conjugates (ADCs) and bispecific antibodies for undisclosed targets. The agreement, which could be worth up to $500 million if the program succeeds, will also have the two companies working on manufacturing a proprietary antibody for Celgene.
Sutro will pick up an upfront payment of a "substantial" sum, according to the release, as well as equity investment in the company and payouts for hitting program milestones. Sutro could also receive royalties on any drug sales from Celgene if the program is a success.
Sutro CEO William Newell added his take on the agreement, saying in the release:
The scope of this partnership showcases our novel, cell-free approach to designing, developing and manufacturing next-generation ADCs and bispecific antibodies.
Sutro will handle product design and will produce pre-clinical material as part of the program. Celgene and Sutro's deal comes after several other companies have looked into producing ADCs, including a partnership between Abbot Labs and Seattle Genetics. Menarini and Oxford BioTherapeutics recently also signed a deal to develop ADCs that could be worth more than $1 billion.
The article Celgene, Sutro Biopharma Agree on Potential $500 Million Deal originally appeared on Fool.com.Dan Carroll has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.