Celgene Partners With Sutro On ADCs, Acquires Option To Buy Sutro
By Cyndi Root
Celgene Corporation has expanded its partnership with Sutro Biopharma and has obtained an exclusive option to acquire Sutro. The two companies announced the deal in a press release, stating that the strategic collaboration and option agreement follows the December 2012 collaboration between the two companies. The new agreement calls for the two to discover and develop multi-specific antibodies and antibody drug conjugates (ADCs).
Thomas Daniel, M.D., Celgene president, said, “Substantive progress and unique advantages of Sutro’s platform have led us to expand and extend our relationship, as a key capability supporting our emerging Immuno-Oncology pipeline.”
Celgene and Sutro Agreement
Celgene and Sutro began their relationship in 2012, designing ADCs and bispecific antibodies. The new collaboration will use Sutro’s cell-free biologics development platforms, Xpress CF- and Xpress CF+, to target PD-1 and PD-L1 and novel targets. Sutro will discover targets, develop them in pre-clinical studies, and manufacture suitable candidates. Celgene may opt to develop candidates for global commercialization. During the initial collaboration period, Celgene holds an option to acquire Sutro and its antibody candidates. Celgene has agreed to provide an upfront payment of $95 million, including the equity investment. The total deal is worth over $1 billion in total payments, which include licensing, milestones, royalties, and equity.
Sutro’s Cell-Free Biologics Platform
Sutro’s proprietary Xpress CF- and Xpress CF+ technology is a scalable protein synthesis platform. Conventional methods utilize bacteria, yeast, insects, plants, or mammals and require intact, functioning cells. These methods are limited in producing proteins and biologics in contrast to Sutro’s extraction of the cellular components needed for energy production, transcription, and translation. Celgene has also entered into a manufacturing agreement, wherein Sutro’s cGMP facility will produce the ADCs and bispecific antibodies to be used in their collaboration.
About Sutro
Sutro Biopharma is headquartered in San Francisco. In addition to Celgene, the company is in collaboration with other pharmaceutical companies, including Merck. In September 2014, Sutro struck a deal with Merck to develop ADCs, wherein Sutro will deliver ADCs for Phase 1 clinical trials and Merck will pursue further development and marketing. Sutro has also recently partnered with the University of California, San Francisco (UCSF) and Memorial Sloan-Kettering Cancer Center.