Palvella Announces Merger with Pieris and $78.9 Million Private Placement

Palvella Therapeutics, Inc., a clinical-stage biopharmaceutical company focused on developing therapies for rare genetic skin diseases, has successfully closed its merger with Pieris Pharmaceuticals, Inc. The post-merger entity will operate under the name Palvella Therapeutics, Inc., and anticipates trading on the Nasdaq Capital Market with the ticker 'PVLA'. The merger, backed by stockholder approval from both companies, positions Palvella to advance its pioneering drug candidate, QTORIN rapamycin, through late-stage clinical trials. This drug could become the first approved U.S. therapy addressing microcystic lymphatic malformations (microcystic LMs) and cutaneous venous malformations (cutaneous VMs). To bolster its financial footing, Palvella also finalized a $78.9 million private placement, co-led by BVF Partners, L.P. and Frazier Life Sciences, along with other major healthcare investors. With this injection of funds, Palvella predicts a robust financial outlook extending through 2027, supporting pivotal Phase 3 and 2 trials for QTORIN rapamycin. QTORIN's design centers on targeted delivery, aiming to treat serious skin diseases effectively while minimizing systemic adverse effects. Legal and financial advisory roles were filled by Troutman Pepper Hamilton Sanders LLP for Palvella, and Stifel and Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo, P.C. for Pieris. Pieris shareholders also received contingent value rights linked to potential proceeds from existing partnerships. The news underscores the combined entities' strategic focus on combating rare diseases while employing rigorous financial and operational planning.