Pieris Pharma shares soar as the biotech enters a drug-development agreement with Roche’s Genentech.
Under the agreement the Boston company and the subsidiary of the Swiss health-care giant will discover, develop and commercialize respiratory and ophthalmology therapies. The venture will use Pieris’s Anticalin technology platform.
Shares of Pieris at last check rose 46% to $2.67. The shares on Tuesday have traded as much as 59% higher at $2.95. Roche American depositary receipts were recently 1% higher at $43.59.
Terms call for Pieris to receive $20 million up front. It then may be eligible to receive more than $1.4 billion in milestone payments across multiple programs, as well as tiered royalties for products that are commercialized.
“This collaboration further expands our partnered efforts in respiratory diseases and opens a new avenue for our Anticalin technology,” Stephen S. Yoder, president and chief executive of Pieris, said in a statement.
“This is our second respiratory alliance with a major biopharma company, and we remain deeply committed to inhaled biologics, which have already shown benefit in the clinic,” Yoder added.
“We also look forward to pursuing another local application of our technology in ophthalmology, where Genentech has extensive capabilities,”
Under the agreement Pieris will be responsible for discovery research and early preclinical development of the programs. Genentech will be responsible for activities that enable investigational-new-drug applications as well as for clinical development and commercialization of those programs.