Vaxcyte Exercises Option And Enters Into Manufacturing Rights Agreement With Sutro Biopharma To Obtain Control Over Manufacturing And Development Of Cell-Free Extract For Its Vaccine Candidates
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Vaxcyte, Inc. has exercised an option and entered into a manufacturing rights agreement with Sutro Biopharma, Inc. to gain control over the development and manufacture of cell-free extract for its pneumococcal conjugate vaccine (PCV) franchise. This move is part of Vaxcyte's strategy to support the global commercialization of its PCV candidates, VAX-24 and VAX-31. Vaxcyte paid Sutro $50 million in cash and will pay an additional $25 million within six months, with potential future milestone payments totaling up to $60 million.
November 27, 2023 | 9:01 pm
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Vaxcyte has solidified its manufacturing capabilities for its PCV franchise by obtaining exclusive rights to develop and manufacture cell-free extract, a critical component for its vaccines.
The agreement with Sutro Biopharma gives Vaxcyte greater control over its vaccine production process, which is likely to have a positive impact on investor confidence and potentially the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Sutro Biopharma will receive $50 million in cash from Vaxcyte for the manufacturing rights agreement, with an additional $25 million due within six months, and up to $60 million in potential milestone payments.
The financial benefits from the agreement with Vaxcyte, including the immediate cash payment and future milestone payments, are likely to be viewed positively by investors, potentially leading to a short-term increase in Sutro's stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80