Wayne-based Palvella Therapeutics is poised to go public later this year through a reverse merger deal with Boston-based Pieris Pharmaceuticals, writes John George for the Philadelphia Business Journal.
“Becoming a publicly traded company allows us to pursue our vision of becoming the leading rare disease company focused on developing and commercializing novel therapies to treat patients suffering from serious, rare genetic skin diseases,” said Wes Kaupinen, Palvella Therapeutics CEO.
Under the terms of the deal, which includes concurrent $78.9 million in financing, the biopharmaceutical firm that works on treatments for rare dermatology diseases would own 82 percent of the combined company with Pieris stockholders getting 18 percent. Additionally, Pieris stockholders will receive a contingent value right for any proceeds the combined company received under Pieris’ existing partnership agreements.
Palvella first explored the option of a reverse merger with Pieris in March, when the Boston company already had several potential candidates. By the end of the month, Palvella was the top candidate in the process.
In mid-May, the two companies agreed to pursue a reverse merger. The deal was finalized on July 23 and announced the following day and is expected to close before the end of the year.
Read more about Palvella Therapeutics going public in the Philadelphia Business Journal.
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