Pieris Pharmaceuticals (NASDAQ:PIRS) stock is rocketing higher on Wednesday after announcing a merger agreement with Palvella Therapeutics.
Pieris Pharmaceuticals and Palvella Therapeutics will enact an all-stock transfer for this merger. Pieris Pharmaceuticals will issue shares of PIRS stock to Palvella stockholders, canceling those investors’ shares of Palvella’s capital stock.
Pieris Pharmaceuticals notes that after the merger, 18% of the combined company will belong to pre-merger PIRS shareholders. The remaining 82% will belong to current investors in Palvella.
Palvella founder and CEO Wes Kaupinen said the following about the merger:
“The expected proceeds from the merger and concurrent private financing are expected to fund us through multiple clinical trial milestones, including generating results from the single-arm, baseline-controlled Phase 3 clinical trial of QTORIN™ rapamycin for the treatment of microcystic lymphatic malformations, a serious, rare and chronically debilitating genetic disease for which there are currently no FDA-approved therapies.”
What This Means for PIRS Stock
When this merger closes, Palvella Therapeutics will be the surviving company. This will see its board of directors consist of four current Palvella members and one member from Pieris Pharmaceuticals. The deal is set to close in the fourth quarter of 2024.
PIRS stock is up 77.3% as of Wednesday morning, with 5 million shares traded. Its daily average trading volume is only about 20,000 shares.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
