Merck, Sutro Biopharma Extends Cytokine Derivative Research Program

Merck & Co Inc MRK has extended the research term by two years for the first cytokine derivative program under a 2018 agreement with Sutro Biopharma Inc STRO.
The research extension is intended to facilitate preclinical research and development activities for a second candidate with a novel design and approach.
As part of this extension, Sutro is eligible to receive up to $10 million.
Under the 2018 collaboration agreement terms, Sutro and Merck are conducting preclinical research and developing cytokine derivatives utilizing Sutro's cell-free protein synthesis and site-specific conjugation platforms, XpressCF and Xpress CF.
Merck has exclusive worldwide rights to therapeutic candidates derived from the collaboration.
In March 2020, Merck exercised its option to extend the research term of the first collaboration program by one year, which generated a payment of $5 million to Sutro.
In April 2021, Merck initiated IND-enabling toxicology studies for the first candidate, for which Sutro earned a $15 million milestone payment.
Additionally, research on a second cytokine derivative program on a separate target is ongoing.
Related Link: Sutro Biopharma's Ovarian Cancer Candidate Fast-Tracked In US.
Price Action: STRO stock closed 0.69% lower at $18.65 on Wednesday.