- Astellas Pharma Inc (OTC: ALPMF) and Sutro Biopharma Inc (NASDAQ: STRO) announced a strategic collaboration and licensing agreement focused on the discovery and development of immunostimulatory antibody-drug conjugates (iADC).
- iADCs are a next-generation modality for treating cancer and are designed to boost anti-cancer activity. They offer potential new options for patients who do not respond to existing cancer immunotherapies.
- The partnership will work to accelerate iADC development for three distinct biological targets.
- Sutro will engage in research and preclinical studies to identify candidate compounds, and then Astellas will pursue clinical development.
- Sutro will receive an upfront payment of $90 million to develop iADCs for three biological targets and may be eligible to receive up to $422.5 million in milestone payments for each product candidate.
- Sutro has the option to share in the costs and profits for developing and commercializing product candidates in the U.S.
- If Sutro exercises this option for a particular product candidate, Astellas and Sutro will equally share the costs of such co-development and co-commercialization, with the resulting profits/losses from co-commercialization also shared equally in the U.S.
- Price Action: STRO shares are up 25.20% at $5.42 during the premarket session on the last check Tuesday.
Read at Benzinga