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

Annual report pursuant to Section 13 and 15(d)

Collaboration and License Agreements and Supply Agreements (Tables)

Collaboration and License Agreements and Supply Agreements (Tables)

12 Months Ended

Dec. 31, 2019

Collaboration And License Agreements And Supply Agreements [Abstract]

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

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Bristol-Myers Squibb Company ("BMS") (1)(2)	$	11,321	$	21,187	$	44,606
Merck Sharp & Dohme Corporation ("Merck") - related party		21,458		8,526		-
Merck KGaA, Darmstadt, Germany (operating in the United States and Canada under the name "EMD Serono")		8,879		7,175		7,135
SutroVax - related party		1,078		1,531		-
Total revenue	$	42,736	$	38,419	$	51,741

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

(2)During the year ended December 31, 2018, $8.9 million of revenue from BMS (formerly Celgene) was related party revenue. Celgene was a related party through September 30, 2018 as it held more than 10% of the Company’s common stock for the periods presented until the closing of our IPO.

Summary of Deferred Revenue Balance

The following table presents the changes in the Company’s deferred revenue balance from collaboration agreements during the year ended December 31, 2019:

	Year ended
	December 31, 2019
	(in thousands)
Deferred revenue—December 31, 2018	$	66,173
Transition adjustment related to adoption of ASC 606		(10,327	)
Deferred revenue—January 1, 2019		55,846
Additions to deferred revenue		2,826
Recognition of revenue in current period		(23,012	)
Deferred revenue—December 31, 2019	$	35,660