Pieris Pharmaceuticals Inc. (NASDAQ:PIRS)
Shares of Pieris Pharmaceuticals Inc. (NASDAQ:PIRS) held steady in the market even on the clinical stage biotechnology company reporting a wider than expected net loss for Q1, 2017. For the first three months of the year, the company says it generated a net loss of $8 million or $0.19 per share compared to a net loss of $4.2 million in Q1 2016. Offering support to the stock is a recently signed $45 million research and development partnership with AstraZeneca.
Pieris Q1 Results
Research and development expense in the quarter totaled $5.4 million compared to $3.7 million in 2016 Q1. Pieris Pharmaceuticals Inc. (NASDAQ:PIRS) says the increase was down to a $0.9 million increase in pre-clinical development costs for PRS-343. General and administrative expense as of the end of the quarter totaled $4 million compared to $2 million as of last year same quarter.
Cash and cash equivalents as of the end of the quarter totaled $55.2 million nearly double $29.4 million as of December 31, 2016. The increase has been attributed to an upfront payment received from Servier as well as option payment from ask. The same helped offset $8.8 million in operating expenditure.
Pieris Pharmaceuticals Inc. (NASDAQ:PIRS) is banking on a number of global and transformative alliances formed in the first quarter as it moves to revitalize its growth prospects according to CEO and President, Stephen Yoder. The company is fresh from inking deals with AstraZeneca plc. (ADR)(NYSE:AZN), Servier, and ASKA.
“We have secured two global and transformative alliances in our two core therapeutic areas of immuno-oncology and respiratory diseases, and an important regional alliance for our anemia program, PRS-080, as we seek to divest that asset in a careful manner while we focus our organization on high-value therapies within immunology,” said Mr. Yoder.
The deal with AstraZeneca presents the company a $2.1 billion opportunity as its begins phase 1 trial for its lead asthma treatment PRS-060. The UK-based pharmaceutical will fund the development and commercialization of the novel treatment. Pieris on the hand has the option of commercializing the drug in the U.S from mid-state studies going forward.
The two companies will also collaborate on the development of four other anticlines that have the potential to treat respiratory diseases. Pieris is set to receive $45 million in upfront payment as part of the deal and $12.5 million once it begins Phase 1 trial for PRS-060.
Pieris Pharmaceuticals Inc. (NASDAQ:PIRS) stock was down by $0.09 in Thursday trading session – closing at $3.89 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.