Sutro, Merck partner to develop immune modulators

Sutro Biopharma Inc. (South San Francisco, Calif.) is collaborating with Merck & Co. Inc. (NYSE:MRK) to discover and develop immune modulators to treat cancer and autoimmune diseases.

Sutro is to receive $60 million up front from Merck and is eligible for $1.6 billion in milestones, plus tiered royalties. Both companies declined to provide specific terms...