Pieris Pharma Teams up With Genentech to Take On the Respiratory and Ophthalmology Markets

On May 25th, Pieris Pharmaceuticals, Inc. announced that it has embarked on a research collaboration and license agreement with Genentech, a Roche subsidiary. As per the agreement, Pieris will receive an initial payment of $20 million and will be eligible for an additional $1.4 billion in milestone payments and royalties.

The collaboration is focused on discovery programs in respiratory disease and ophthalmology, with the opportunity to nominate additional programs. This is Pieris’ second strategic collaboration in respiratory diseases, following its alliance with AstraZeneca in 2017.

Boston-based Pieris focuses on respiratory diseases and cancer. It has several programs in the discovery and preclinical pipeline and two in clinical trials. Its unique technology utilizes over 100 billion different Anticalin proteins to ensure a candidate for almost any therapeutic target.

With this new partnership, the companies will aim to utilize Pieris’ proprietary Anticalin technology to discover, develop and commercialize locally delivered respiratory and ophthalmology therapies. While Pieris will conduct the discovery research and early preclinical development, Genentech will be responsible for IND-enabling activities, clinical development, and commercialization. Since the announcement, Pieris’ stock soared more than 100%.

“We look forward to working closely with Genentech on the development of new inhaled and ophthalmological treatments based on the Anticalin platform. This collaboration further expands our partnered efforts in respiratory diseases and opens a new avenue for our Anticalin technology to potentially provide patient benefit through local biological effects,” said Stephen S. Yoder, President, and CEO of Pieris.

Growing Market

Respiratory diseases and ophthalmic drugs on their own have large market values. Genentech, a leading biotechnology company, is already a top player in the ophthalmic drug market, which was approximately 27 billion dollars in 2019 and is expected to grow at a CAGR of 4.6%.

Ophthalmic drugs include Inflammation/Infection, Retinal Disorders, Dry Eye, Allergies, and others. Through this partnership, Pieris and Genentech are looking to gain a larger slice of a growing market, which is expected to reach $37.7 billion by 2026.

Genentech is also hoping to establish itself in the global respiratory disease market, which is estimated at $90 billion in 2020 as expected to grow at a CAGR of 5%. The respiratory diseases market includes drugs that treat asthma, COPD, cystic fibrosis, and other diseases. Pieris’ earlier partnership with AstraZeneca is already showing benefit in the clinic and validating the utility of inhaled biologics for treating asthma.

“Genentech has a longstanding commitment to understanding the underlying biology of respiratory and ocular diseases and translating this expertise into treatments for patients. We are excited to partner with Pieris Pharmaceuticals to advance potential new therapies that we hope could make a significant difference in the lives of people who need them,” said James Sabry, M.D., Ph.D., Global Head of Pharma Partnering, Roche.

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Author

Nicole Bata