9. Related-Party Transactions

As Celgene (now BMS) held more than 10% of the Company’s common stock for the periods presented until the closing of the Company’s IPO, during the year through September 30, 2018, $8.9 million of revenue from Celgene was related party revenue. Upon the Company’s IPO, Celgene’s ownership of the Company’s outstanding equity interest decreased to less than 10%. As a result, starting October 1, 2018, the Company ceased to reflect balances and transactions associated with Celgene as a related party in its financial statements. Transactions with Celgene, as of December 31, 2019, 2018 and 2017, respectively, are described in Note 5.

Related party transactions with Merck, which owned 11.8% and 11.9% of the Company’s outstanding equity interest as of December 31, 2019 and 2018, respectively, are described in Note 5.

Investment in SutroVax, Inc. (“SutroVax”)

In December 2013, the Company and Johnson & Johnson Innovation, through the Johnson & Johnson Development Corporation, provided initial co-funding for a new company, SutroVax, with which the Company has a license agreement and supply agreement. SutroVax leverages the Company’s proprietary integrated cell-free protein synthesis platform, XpressCF^®, to develop novel vaccines for a broad range of disease targets. The Company had $14,000 and $49,000 in receivables due from SutroVax as of December 31, 2019 and 2018, respectively, which were included in accounts receivable on the balance sheet.

As of both December 31, 2019 and 2018, the Company held a 5.6% common stock ownership interest in SutroVax on a fully-diluted basis, with a carrying value of $0. The Company’s investment in SutroVax was accounted for under the cost method as of both December 31, 2019 and 2018.

SutroVax qualifies as a variable interest entity. However, the Company maintains only shared power to direct the activities that most significantly impact the performance of SutroVax. Therefore, the Company is not considered the primary beneficiary and consolidation is not required.

See Note 5. SutroVax, Inc. Supply Agreement, for discussion of the supply arrangement entered into with SutroVax in May 2018 and related revenue recognized for the year ended December 31, 2019 and 2018.