ASKA Pharma gains rights to anemia drug candidate PRS-080 in Japan

Clinical-stage biotech company Pieris Pharmaceuticals (Nasdaq: PIRS) has granted ASKA Pharmaceutical an exclusive option to license development and commercial rights to Pieris' anemia drug candidate.

ASKA will get an option on PRS-080 in Japan and certain other Asian markets following completion of a multi-dose Phase IIa study to be conducted by Pieris in dialysis-dependent anemia patients. News of the deal sent Pieris’ shares soaring 16% to a high of $2.24, in pre-market trading Monday.

Under the terms of the option agreement, Pieris will receive an immediate option payment of $2.75 million from ASKA, an independent Japanese pharmaceutical company with annual sales of around $400 million. Following an analysis period after the completion of the planned Phase IIa study conducted by Pieris, ASKA may exercise its option to obtain an exclusive license to develop and commercialize PRS-080 in Japan, South Korea and certain other Asian markets (excluding China). Should ASKA exercise the option, Pieris would be eligible for more than $80 million in combined option exercise fee and milestones associated with development and commercialization of PRS-080 in the first indication in Japan. Pieris may receive further development milestones in additional indications, as well as in other countries within the ASKA territory. Pieris could also receive double-digit royalties on net sales of PRS-080 up to the mid- to high-teens.