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United States. Securities and Exchange Commission

Pieris Pharmaceuticals Announces Termination of License Agreement with AstraZeneca and Intends to Explore Strategic Alternatives

Strategic Insights

— 1 min read

Pieris Pharmaceuticals, Inc. has filed a Current Report with the U.S. Securities and Exchange Commission, announcing the termination of its License and Collaboration Agreement with AstraZeneca AB, effective October 15, 2023. This development comes after AstraZeneca provided a written notice of termination on July 17, 2023, citing non-clinical safety findings in a 13-week toxicology study of elarekibep in non-human primates. The termination of the agreement will include both elarekibep and the remaining active discovery stage program.

Key Takeaways:

  • Pieris Pharmaceuticals, Inc. has filed a Current Report with the U.S. Securities and Exchange Commission announcing the termination of its License and Collaboration Agreement with AstraZeneca AB.
  • The termination of the agreement will be effective on October 15, 2023, and will include both elarekibep and the remaining active discovery stage program.
  • The decision to terminate the agreement was made by AstraZeneca AB due to non-clinical safety findings in a 13-week toxicology study of elarekibep in non-human primates.
  • Pieris Pharmaceuticals, Inc. intends to explore strategic alternatives to maximize shareholder value, with the goal of completing a review of strategic alternatives by engaging Stifel, Nicolaus & Company, Incorporated as its strategic advisor.
  • The company has announced a reduction in force of approximately 70% of its workforce, which is expected to be substantially completed in the fourth quarter of 2023.
  • The estimated severance and other employee termination-related costs associated with the reduction in force are approximately $3.4 million in the third quarter of 2023.
  • The company's management will re-evaluate the estimated costs and expenses set forth above and may revise the estimated reduction-related cost as appropriate, consistent with generally accepted accounting principles.

Statistics:

  • 70% reduction in workforce
  • $3.4 million estimated severance and employee termination-related costs in the third quarter of 2023
  • October 15, 2023: date of termination of License and Collaboration Agreement with AstraZeneca AB
  • July 18, 2023: date of Current Report filing with the U.S. Securities and Exchange Commission
  • June 30, 2023: company's cash, cash equivalents, and investments totaled approximately $54.9 million (preliminary, unaudited estimate)

Sources:

  • U.S. Securities and Exchange Commission (SEC) Current Report filing (PIERIS Pharmaceuticals, Inc.)
  • SEC Quarterly Report on Form 10-Q (PIERIS Pharmaceuticals, Inc.)
  • AstraZeneca AB License and Collaboration Agreement with PIERIS Pharmaceuticals, Inc. (filed as Exhibit 10.1 to the SEC Quarterly Report on Form 10-Q)

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