By Chris Wack

 

Sutro Biopharma Inc. shares rose 24% to $5.36 after the company said it entered into a worldwide strategic collaboration and licensing agreement with Astellas Pharma Inc.

The company said the partnership will focus on the discovery and development of novel immunostimulatory antibody-drug conjugates.

The partnership will enable Astellas and Sutro to accelerate iADC development for three biological targets. Sutro will engage in research and preclinical studies to identify candidate compounds, with Astellas working on clinical development.

Sutro will receive an upfront cash payment of $90 million to develop iADCs for three biological targets and may be eligible to receive up to $422.5 million in development, regulatory and commercial milestones for each product candidate, as well as tiered royalties of low double-digit to mid-teens on worldwide sales of any commercial products that may result from the collaboration, subject to Sutro's cost and profit sharing option for the U.S.

 

Write to Chris Wack at chris.wack@wsj.com

 

(END) Dow Jones Newswires

June 28, 2022 10:13 ET (14:13 GMT)

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