Pieris Pharmaceuticals, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a total revenue of $0 for the three months ended September 30, 2024, a stark decline from $19,520,000 in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $53,000, down from $41,511,000 in the prior year. This decline is attributed to the completion of obligations related to customer and collaboration revenues, particularly following the expiration of the Genentech collaboration agreement in May 2024.

The company reported a net loss of $2,887,000 for the third quarter of 2024, a significant improvement compared to a net loss of $10,752,000 for the same quarter in 2023. For the nine-month period, the net loss was $11,369,000, down from $19,959,000 in the previous year. This reduction in losses is largely due to decreased operating expenses, which totaled $3,135,000 for the third quarter of 2024, compared to $31,327,000 in the same period of 2023.

Total operating expenses for the nine months ended September 30, 2024, were $12,668,000, a substantial decrease from $66,766,000 in 2023. The reduction in expenses is attributed to a workforce reduction of approximately 70% approved in July 2023, which incurred $7.5 million in severance costs. General and administrative expenses also decreased, reflecting lower personnel costs and reduced professional services spending.

As of September 30, 2024, Pieris had cash and cash equivalents of $19,363,000, an increase from $17,396,000 at the end of 2023. However, total current assets decreased significantly to $20,522,000 from $38,680,000. The accumulated deficit increased to $(326,333,000) from $(314,964,000) at the end of 2023, while total stockholders’ equity fell to $16,268,000 from $26,758,000.

Strategically, Pieris announced a new plan on March 27, 2024, to extend its cash runway into at least 2027 and maximize potential milestones from partnered programs. The company entered into a merger agreement with Palvella Therapeutics, Inc. on July 23, 2024, which is expected to close in the fourth quarter of 2024, subject to stockholder approval. The merger is anticipated to provide additional financial resources, with PIPE financing expected to raise approximately $78.9 million.