Vaxcyte exercises option, pays Sutro $50M; manufacturing rights agreement effective

(the “Company”) entered into a letter agreement (the “Option Agreement”) with Vaxcyte, Inc. (“Vaxcyte”), under which the Company granted to Vaxcyte (i) authorization to enter into an agreement with an independent alternate contract manufacturing organization (“CMO”) to source cell-free extract solely for the products it licensed from the Company, allowing Vaxcyte to have direct oversight over financial and operational aspects of the relationship with the CMO; and (ii) a right, but not an obligation, to obtain certain exclusive rights to internally manufacture and/or source extract from certain CMOs and the right to independently develop and make improvements to extract for use in connection with the exploitation of certain vaccine compositions (the “Option”).