Why Sutro Biopharma Shares Are Trading Higher Premarket Today - Astellas Pharma (OTC:ALPMY), Sutro Biopharma (NASDAQ:STRO), Astellas Pharma (OTC:ALPMF)

Astellas Pharma Inc ALPMF and Sutro Biopharma Inc STRO announced a strategic collaboration and licensing agreement focused on the discovery and development of immunostimulatory antibody-drug conjugates (iADC).
iADCs are a next-generation modality for treating cancer and are designed to boost anti-cancer activity. They offer potential new options for patients who do not respond to existing cancer immunotherapies.
The partnership will work to accelerate iADC development for three distinct biological targets.
Sutro will engage in research and preclinical studies to identify candidate compounds, and then Astellas will pursue clinical development.
Sutro will receive an upfront payment of $90 million to develop iADCs for three biological targets and may be eligible to receive up to $422.5 million in milestone payments for each product candidate.
Sutro has the option to share in the costs and profits for developing and commercializing product candidates in the U.S.
If Sutro exercises this option for a particular product candidate, Astellas and Sutro will equally share the costs of such co-development and co-commercialization, with the resulting profits/losses from co-commercialization also shared equally in the U.S.
Price Action: STRO shares are up 25.20% at $5.42 during the premarket session on the last check Tuesday.

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