10:59 AM EDT, 07/24/2024 (MT Newswires) -- Pieris Pharmaceuticals ( PIRS ) and Palvella Therapeutics said Wednesday they have agreed to merge in an all-stock transaction.

The combined entity will focus on developing and marketing Palvella's QTORIN rapamycin, for treating skin diseases. Upon completion, the merged entity will operate as Palvella Therapeutics and is expected to trade on Nasdaq, according to the joint statement.

As part of the planned merger, Palvella has obtained commitments from a group of healthcare-focused investors in an oversubscribed $78.9 million private financing, which is expected to provide cash runway into the second half of 2027, the companies said. The merged entity is anticipated to have around $80.5 million in cash and cash equivalents upon the completion of the deal and concurrent private financing.

The merger, along with private financing, is expected to close in Q4, subject to regulatory approvals and customary conditions, the companies said.

Pieris Shares rose more than 70% in recent trading.

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