By Chris Wack

Pieris Pharmaceuticals shares doubled to $16.06 after the company said it was being bought by Palvella Therapeutics, a clinical-stage biopharmaceutical company.

The combined company will focus on developing and commercializing Palvella's lead clinical product candidate, Qtorin 3.9% rapamycin anhydrous gel for the treatment of microcystic lymphatic malformations and other serious, functionally debilitating skin diseases.

Upon completion of the proposed merger, the combined company will operate under the name Palvella Therapeutics, will be headquartered in Wayne, Pa., and is expected to trade on the Nasdaq Capital Market.

In connection with the proposed merger, Palvella has secured commitments from a syndicate of leading healthcare-dedicated investors in an oversubscribed $78.9 million concurrent private financing.

The combined company is expected to have $80.5 million of cash and cash equivalents at closing of the proposed merger. These cash resources are expected to be used to advance Qtorin through multiple clinical data milestones and are expected to fund the combined company's operations into the second half of 2027.

The proposed merger is expected to close in the fourth quarter of 2024. Pieris stockholders are expected to own 18% of the combined company and pre-merger Palvella stockholders are expected to own 82% of the combined company

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

July 24, 2024 09:54 ET (13:54 GMT)

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