Sutro Biopharma, Inc. Annual report pursuant to Section 13 and 15(d)

Collaboration and License Agreements and Supply Agreements (Tables)

12 Months Ended

Dec. 31, 2021

In accordance with its agreements, the Company recognized revenue as follows:


	Year Ended December 31,
	2021		2020		2019
	(in thousands)
Bristol-Myers Squibb Company ("BMS") (1)	$	11,483	$	11,407	$	11,321
Merck Sharp & Dohme Corporation ("Merck") (2)		42,780		26,075		21,458
Merck KGaA, Darmstadt, Germany (operating in the United States and Canada under the name "EMD Serono")		4,576		5,042		8,879
Vaxcyte (3)		3,041		198		1,078
Total revenue	$	61,880	$	42,722	$	42,736

(1)

In January 2019, BMS announced the entry into a definitive agreement to acquire Celgene and the transaction was completed in November 2019.

(2)

Merck was a related party until the closing of the Company's public offering on May 14, 2020.

(3)

Vaxcyte was a related party until the closing of its initial public offering on June 16, 2020.

The following table presents the changes in the Company’s deferred revenue balance from its agreements during the year ended December 31, 2021:


	Year ended
	December 31, 2021
	(in thousands)
Deferred revenue—December 31, 2020	$	20,703
Additions to deferred revenue		23,402
Recognition of revenue in current period		(38,609	)
Deferred revenue—December 31, 2021	$	5,496

Revenues under the BMS Agreement and the 2018 BMS Master Services Agreement were as follows:



	Year ended December 31,
	2021		2020		2019
	(in thousands)
Ongoing performance related to unsatisfied performance obligations	$	–	$	2,974	$	3,936
Research and development services		940		646		571
Materials supply		10,543		7,787		6,814
Total revenue	$	11,483	$	11,407	$	11,321

Revenues under the 2018 Merck Agreement and the 2020 Merck Master Services Agreement were as follows:



	Year ended December 31,
	2021		2020		2019
	(in thousands)
Ongoing performance related to unsatisfied performance obligations	$	35,098	$	18,474	$	14,736
Research and development services		2,666		5,485		3,578
Financing component on unearned revenue		610		1,852		3,144
Materials supply		4,406		264		–
Total revenue	$	42,780	$	26,075	$	21,458

Revenues under the EMD Serono agreements were as follows:



	Year ended December 31,
	2021		2020		2019
	(in thousands)
Ongoing performance related to unsatisfied performance obligations	$	–	$	–	$	2,266
Contingent payment / milestone earned		2,000		1,000		1,500
Research and development services		851		1,316		2,890
Materials supply		1,725		2,726		2,223
Total revenue	$	4,576	$	5,042	$	8,879

Revenues under the Vaxcyte Supply Agreement were as follows:



	Year ended December 31,
	2021		2020		2019
	(in thousands)
Research and development services	$	1,131	$	184	$	–
Materials supply		1,910		14		1,078
Total revenue	$	3,041	$	198	$	1,078