Benzinga | May 25, 2021 11:06AM EDT

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

* Pieris Pharmaceuticals Inc (NASDAQ: PIRS) has entered into a multi-program research collaboration and license agreement with Genentech, a unit of Roche Holdings AG (OTC: 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.