Item 1.01. Entry into a Material Definitive Agreement.
On October 9, 2021, Sutro Biopharma, Inc. (the "Company") entered into an option
agreement (the "BioNova Option Agreement") with BioNova Pharmaceuticals Limited
("BioNova"), to confer BioNova the option to obtain exclusive rights to develop
and commercialize STRO-001 in Greater China. BioNova will pursue the clinical
development, regulatory approval, and commercialization of STRO-001 in multiple
indications, including non-Hodgkin's lymphoma, multiple myeloma, and leukemia in
the licensed territory. The Company will retain development and commercial
rights of STRO-001 globally outside of Greater China, including the United
States.
Under the BioNova Option Agreement, BioNova will pay to the Company an initial
licensing option payment of $4 million, with potential payments totaling up to
$200 million related to option exercise, development, regulatory, and commercial
milestones. The Company will provide STRO-001 to BioNova under appropriate
clinical and commercial supply service agreements. Upon commercialization, the
Company will receive tiered, low- to mid-teen royalties based on annual net
sales of STRO-001 in Greater China for at least ten years following the first
commercial sale of STRO-001 in Greater China.
BioNova has the right to terminate the BioNova Option Agreement for convenience
or other reasons specified in the BioNova Option Agreement upon prior written
notice.
The foregoing description of the BioNova Option Agreement is qualified in its
entirety by reference to the Option Agreement, a copy of which will be filed as
an exhibit to the Company's Annual Report on Form 10-K for the year ended
December 31, 2021.
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