- Pieris will collaborate with Genentech in respiratory and ophthalmology therapies.
- The biotechnology company will get an upfront payment of US$20 million in the deal.
- Pieris is also developing inhaled treatments for respiratory diseases with AstraZeneca.
Pieris, Inc. (NASDAQ: PIRS) stock rallied over 36 percent when markets opened on Tuesday after the company announced a partnership with Genentech on respiratory and ophthalmology therapies.
The Boston-based Pieris is a biotechnology company that develops Anticalin protein-based drugs.
Research and license agreement with Genentech
Pieris entered into a multi-program agreement with Swiss healthcare company Roche Holding AG’s subsidiary Genentech to develop and commercialize locally delivered therapies for the treatment of respiratory and ophthalmological diseases.
Pieris will execute programs for discovery and preclinical stages of development. The Swish firm will manage commercial and clinical development activities.
California-based Genentech has agreed to give an upfront payment of US$20 million to Pieris and additional milestone payments and royalties for commercialized programs of over US$1.4 billion.
Pieris also has tie-ups with AstraZeneca, Servier, and Boston Pharmaceuticals. It will also collaborate with AstraZeneca for the treatment of respiratory diseases. Both sides had agreed to payment- and royalty-sharing model for products up to US$2.1 billion in 2017.
Net Loss Widened in Q1
During the first quarter ended May 31, Pieris saw its net loss increase to US$4.2 million from a loss of US$3.6 million per share in the year-ago period. Earnings per share remained flat at 7 cents YoY. Revenues totaled US$15.6 million in the three months, up from US$13.3 million in the year-ago quarter.
However, Pieris’s research and development expenses grew to US$16.6 million from US$12.8 million in the same quarter of the previous year. Its expenditures were mainly related to preclinical activities and the manufacturing of cancer drugs.
Pieris trades on NASDAQ and has a market capitalization of US$146.3 million. The stock plummeted to US$1.7 in the first week of May, which was a 52-week low. The stock fell 42 percent in the last one-year period and is down 28 percent year to date as of May 24 closing price. As of 10:40 am ET, Pieris’ stock was trading at US$2.52, up 36.2 percent.