Palvella Therapeutics and Pieris Pharmaceuticals Announce Definitive Merger Agreement

Palvella Therapeutics and Pieris Pharmaceuticals have entered into a merger agreement to form a Nasdaq-listed biopharmaceutical company. The combined entity will focus on developing treatments for rare genetic skin diseases, including the QTORIN™ 3.9% rapamycin anhydrous gel for microcystic lymphatic malformations.

The merger will equip the new company with around $80.5 million in cash and cash equivalents by the end of 2027, facilitated by a $78.9 million private financing from healthcare investors. This funding is expected to support various clinical trial milestones, including a pivotal Phase 3 trial for QTORIN™ rapamycin under the FDA's Breakthrough and Fast Track Designation programs.

The combined company will operate under the name Palvella Therapeutics, Inc., headquartered in Wayne, PA, and will trade on The Nasdaq Capital Market. The anticipated merger and financing are set to close in the fourth quarter of 2024, pending stockholder approval and regulatory conditions.