Pieris Stock Surges on Development Pact with Genentech for Respiratory, Ophthalmology Settings

Pieris Pharmaceuticals Inc PIRS has entered into a multi-program research collaboration and license agreement with Genentech, a unit of Roche Holdings AG RHHBY for respiratory and ophthalmology.
The research collaboration will utilize Pieris' Anticalin technology, initially for respiratory disease and ophthalmology, with an opportunity to nominate additional programs.
Under the agreement terms, Pieris will receive $20 million as an upfront payment, eligible to receive more than $1.4 billion in additional milestone payments and tiered royalties.
Pieris will be responsible for discovery research and early preclinical development of the programs, and Genentech will be responsible for IND-enabling activities, clinical development, and commercialization of those programs.
Genentech will also have the option to select additional targets in return for an option exercise fee.
Price Action: PIRS shares are up 49.3% at $2.76 on the last check Tuesday.