Vaxcyte Obtains Control Over Manufacturing & Development Of Cell-Free Extract For Vaccine Candidates

(RTTNews) - Vaxcyte Inc. (PCVX) said that it has exercised its option and entered into a manufacturing rights agreement with Sutro Biopharma Inc. (STRO) to obtain control over the development and manufacture of cell-free extract, a key component of Vaxcyte's pneumococcal conjugate vaccine or PCV franchise, which includes VAX-24 and VAX-31.

STRO closed Monday regular trading at $2.28 down $0.18 or 7.32%. But in the after-hours trading the stock gained $0.22 or 9.65%.

As per the deal, 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.

Vaxcyte paid Sutro $50 million in cash and is obligated to pay Sutro an additional $25 million 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 million in cash.