Pieris Pharmaceuticals Inc (NASDAQ:PIRS) and AstraZeneca plc (ADR)(NYSE:AZN) are getting into what can be described as a critical collaboration. The duo has mutually agreed to develop novel inhaled drugs on Pieris’ Anticalin platform. Having partnered with a big pharma company, the tiny Boston biotech will at first receive an upfront payment of $45 million. An additional $12.5 million will follow once the Phase 1 trial of its lead, preclinical drug candidate, PRS-060 begins.
Each of the two will be playing different but significant roles in the collaboration. Pieris will take over the advancement of its lead potential asthma treatment while AstraZeneca will take the responsibility of funding all the necessary clinical development and commercial programs.
The building of scientific expertise in inhaled formulation technologies
The collaboration has much more to offer according to Executive VP, Innovative Medicines and Early Development Biotech Unit and Business Development, Mene Pangalos. He outlines, “At AstraZeneca, discovering and developing innovative new medicines to treat respiratory diseases is a key strategic priority.”
Pieris’ CEO Stephen Yoder recognizes that AstraZeneca has unparalleled expertise in the development of inhaled drugs. Thus it is practical to embrace the potential in PRS-060 and other inhaled Anticalin molecules. Besides, Anticalin is said to be an engineered protein, which is perhaps easier to deliver than a majority of other biological medications.
But the two companies have had commendable growth
For a long time, AstraZeneca has remained in the limelight for good reasons among them leading innovation in respiratory diseases. The company has previously collaborations with the likes of Allergan plc Ordinary Shares (NYSE:AGN) and Sanofi SA (ADR) (NYSE:SNY), which are also big time industry players.
As for Pieris, so far it has 40 employees in its labs in Munich while another nine are at its corporate headquarters in Boston. The biotech company just struck a deal worth an upfront payment of $31 million with French giant Servier to co-develop around eight cancer programs.
In the meantime, AstraZeneca’s stock closed at $30.63 witnessing an increase of $0.13 or 0.43%, while that of Pieris was trading at $3.54 a fall of $0.13 or 3.54%.