Pieris cuts 70% of workforce as AstraZeneca terminates tie-up

18 Jul 2023
firstwordpharma.com
Phase 2Clinical Trial Failure
Pieris Pharmaceuticals announced on Tuesday that it would cut around 70% of its staff and explore strategic options due to events that have impacted its inhaled respiratory franchise, including AstraZeneca's discontinuation of a Phase IIa study for elarekibep in asthma. The company added that the UK drugmaker has now decided to terminate its agreement for the IL-4 receptor alpha inhibitorIL-4 receptor alpha inhibitor, which was signed in 2017, handing back rights to the inhaled Anticalin therapy.
"We are pursuing strategic options across three main areas," explained CEO Stephen Yoder, adding that "one track is accelerating partnering discussions of PRS-220 and PRS-400," which are inhaled Anticalin proteins in preclinical trials for respiratory diseases. The company is also focused on selecting a development partner and deal structure to re-initiate clinical development of its former lead immuno-oncology asset cinrebafusp alfa.
The drug, also known as PRS-343, has shown potential in a HER2+ gastric cancer trial, but "was discontinued for strategic reasons" last year. Yoder added "third, we will explore whether our balance sheet, position as a public company, and other assets are of strategic value to a range of third parties."
Pieris currently has cash, cash equivalents and investments totalling $54.9 million, with the workforce cuts set to reduce cash spending. The company noted that it does not intend to make any further disclosures regarding the strategic review process until a specific course of action has been decided.
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