Pieris Pharmaceuticals and AstraZeneca Enter $45 Million Agreement to Co-Develop Inhaled Therapies for Respiratory Diseases

VCBeat (WeChat: vcbeat) has learned that Pieris Pharmaceuticals recently signed a $45 million agreement with AstraZeneca to develop a portfolio of inhaled therapeutics for respiratory diseases.

Under the agreement, Pieris will receive $45 million to advance the experimental asthma drug PRS-060 into human clinical trials. The drug is expected to commence Phase I testing this year, triggering an additional $12.5 million payment to Pieris. AstraZeneca will be responsible for funding all clinical trials and subsequent commercialization efforts. Additionally, the two parties will collaborate on the development of four novel Anticalin-based respiratory disease therapeutics.

Headquartered in Boston, Pieris was incorporated in Nevada on May 24, 2013. It is a clinical-stage biopharmaceutical company dedicated to the discovery and development of Anticalin®-based biotherapeutics for patients with various diseases. The company has 49 full-time employees and has entered into collaboration agreements with multiple pharmaceutical companies, including Roche (PINK: RHHBY) and Allergan (NYSE: AGN).

Pieris Pharmaceuticals’ Anticalin biologics target difficult-to-reach areas in the body, including the pulmonary airways. Anticalin molecules are engineered proteins that mimic antibody function by binding to small molecules or other antibody epitopes. These antibody mimetics are smaller than monoclonal antibodies and can be delivered directly to the lungs. Under a new agreement with AstraZeneca, the British pharmaceutical giant will advance an asthma drug that blocks inflammatory cytokines in asthma patients. This medication is administered to the lungs via an inhaler.

Mene Pangalos, Vice President and Head of Innovative Medicines and Early Development Biotech Unit at AstraZeneca, stated, “For AstraZeneca, the research and development of innovative medicines for respiratory diseases is a key strategic priority. Our collaboration with Pieris builds on our expertise in developing inhaled formulations and brings an important new portfolio to AstraZeneca’s respiratory pipeline. Pieris can appreciate AstraZeneca’s passion for pioneering science, and we look forward to working together with Pieris on drug development programs that will deliver transformative treatment options for patients.”

Stephen Yoder, CEO and President of Pieris, stated, “Our collaboration with AstraZeneca has accelerated Pieris’ transformation into an integrated company focused on drug development and commercialization. The field of immunology encompasses two core therapeutic areas: respiratory diseases and cancer immunotherapy, each supported by major ongoing collaborations. We highly value AstraZeneca’s outstanding expertise in the development of inhaled therapeutics, which will maximize the clinical potential of PRS-060 and help realize the value of other inhaled Anticalin® partnership candidates.”

Under this collaboration, AstraZeneca is required to pay Pieris an upfront payment and short-term milestone payments totaling $57.5 million. Pieris is eligible to receive potential development- or commercialization-stage milestone payments of up to $2.1 billion, as well as tiered royalties on net sales of any co-developed drugs that reach the market. On the day the agreement was signed, Pieris Pharmaceuticals’ stock price surged by nearly 50% in pre-market trading, reaching $3.53 per share.