Pieris out-licenses PRS-342 for up to $365 million

US clinical-stage biotech Pieris Pharmaceuticals’ (Nasdaq: PIRS) shares edged up 4% to $2.37 in early trading today after it announced an exclusive product license agreement with Boston Pharmaceuticals to develop PRS-342, a 4-1BB/GPC3 pre-clinical immuno-oncology Anticalin-antibody bispecific fusion protein.

Under the terms of the deal, Boston Pharmaceuticals has exclusively licensed worldwide rights to PRS-342. Pieris will receive an upfront payment of $10 million and is further entitled to receive up to approximately $353 million in development, regulatory, and sales-based milestone payments, and tiered royalties on sales of PRS-342. Pieris will also contribute an undisclosed amount toward manufacturing activities.

"Based on the encouraging pre-clinical data from PRS-342, as well as data demonstrative of the 4-1BB mechanism of action we have seen from Pieris' other immuno-oncology programs, we are excited to have the opportunity on a global scale to progress this program into clinical development in areas of significant unmet need," said Robert Armstrong, chief executive of Boston Pharmaceuticals.