Pieris Pharmaceuticals Announces New Strategy to Maximize Financial Potential

Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS) announced a comprehensive update on March 27, 2024, introducing a strategic approach aimed at enhancing milestone and royalty opportunities from its partnered 4-1BB bispecific Mabcalin® immuno-oncology assets with Pfizer, Boston Pharmaceuticals, and Servier. In pursuit of optimizing shareholder value, the company's Board of Directors has decided to enact cost-saving plans expected to extend its financial runway into 2027.

Following an exhaustive review, which considered over 500 companies for strategic cooperation, the company aims to solidify its financial standing by focusing on potential milestone and royalty earnings. This shift includes discontinuing all R&D efforts by mid-2024, reducing workforce, and scaling down its Board of Directors. These measures align with a "lean business model" designed to ensure financial sustainability while retaining significant contractual milestones and royalties from partnerships.

The strategic pivot is characterized by its self-funding nature, leveraging fully funded partnered programs to potentially accelerate shareholder returns. This follows various steps taken since July 2023 to cut operational costs, including halting specific program developments and the sale of assets. As of December 31, 2023, Pieris reported $26.4 million in cash and investments, with no anticipated near-term financing needs for achieving its partnered program milestones.

Notably, Pieris stands to receive up to $275 million in development milestones and over $500 million in commercial milestones from its partnerships, in addition to mid to low double-digit royalties on future sales. The management also remains open to exploring strategic opportunities to further enhance shareholder value, though there are no guarantees regarding the realization or timing of potential milestone or royalty payments.