Vaxcyte in manufacturing pact with Sutro Biopharma for PCV franchise control

Vaxcyte (PCVX) and Sutro Biopharma (STRO) announced that Vaxcyte has exercised its option and entered into a manufacturing rights agreement with Sutro to obtain control over the development and manufacture of cell-free extract, a key component of Vaxcyte’s pneumococcal conjugate vaccine PCV franchise, which includes VAX-24 and VAX-31. Pursuant to the manufacturing rights agreement, Vaxcyte obtained exclusive rights to independently, or through certain third parties, develop, improve and manufacture cell-free extract for use in connection with the Company’s vaccine candidates. “Over the past year, Vaxcyte has made significant progress with its VAX-24 clinical program, reporting positive results for two Phase 2 studies in adults. The XpressCF cell-free protein synthesis platform and cell-free extract are essential in the development of Vaxcyte’s vaccine candidates, which further highlights the value of our platform capabilities.” Upon exercising the option, which was granted pursuant to the December 2022 option grant agreement between the parties, Vaxcyte paid Sutro $50Min cash and is obligated to pay Sutro an additional $25M in cash within six months. Upon the occurrence of certain regulatory milestones, Vaxcyte would be obligated to pay Sutro certain additional milestone payments totaling up to $60 Mn cash.