Celgene takes option in Sutro cancer deal

Celgene Corp. (NASDAQ:CELG) paid Sutro Biopharma Inc. (South San Francisco, Calif.) $95 million up front in a deal to develop cancer immunotherapies using Sutro's cell-free protein synthesis technology. Celgene also enlarged its equity stake in Sutro to 15% and obtained an option to acquire the company at an unspecified time.

Celgene may pay Sutro up to an additional $90 million during the collaboration's initial research term, based on milestones. Sutro is eligible for more than $1 billion in total milestones, plus royalties. Celgene has the option to extend the collaboration beyond initial terms in exchange for additional payment. ...