Wayne-based Palvella Therapeutics recently finalized a reverse merger with Pieris Pharmaceutical, transitioning into a publicly traded company while securing a significant cash infusion, writes John George for the Philadelphia Business Journal.
The combined company will operate under the Palvella name. It will be headquartered in Wayne and led by Palvella CEO Wes Kaupinen, along with the rest of his management team. The newly formed company will maintain its focus on developing treatments for rare genetic skin diseases.
A reverse merger occurs when a private company takes over a majority stake in a publicly traded company. It effectively becomes a publicly traded entity itself.
Palvella shares started trading this week in NASDAQ under the PVLA symbol. The stock was trading at $12.80 per share in mid-afternoon trading on Monday, which is around six percent down.
Alongside the merger, the Chester County company successfully closed an oversubscribed $78.9 million private placement.
San Francisco-based BVF Partners co-led the equity financing with Palo Alto-based Frazier Life Sciences.
“Palvella is well positioned to enter the public markets and pursue our vision of becoming the leading rare disease company focused on rare genetic skin diseases,” said Kaupinen.
Read more about Palvella Therapeutics and Pieris Pharmaceutical in the Philadelphia Business Journal.
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