Transaction Case Studies

Global Multi-Program Immuno-Oncology Alliance

Situation Assessment

• Pieris Pharmaceuticals (NASDAQ: PIRS) is a publicly traded company developing innovative, multispecific immuno-oncology (IO) drug candidates powered by its versatile and unique Anticalin® platform
• At the time of engagement with Locust Walk, the company was seeking to rapidly execute one or more broad multi-program strategic collaborations to advance the IO platform and was in active term sheet discussions with Servier
• Pieris selected Locust Walk as its IO business development advisor to ensure execution of the best possible IO strategic collaboration(s), create competitive deal tension, accelerate transaction timelines and maximize the value of its IO platform through additional partnerships

Key Activities

• Prepared high-impact marketing materials to emphasize the broad applicability of the platform and time pressure for a transaction
• Conducted a broad, targeted outreach campaign to leading global and regional biopharma companies active in oncology drug development
• In cooperation with Pieris business development team, conveyed competitive deal process to Servier, which helped to ensure the deal timeline and provide negotiating leverage
• Led numerous companies through a confidential due diligence process and facilitated discussions with several interested parties
• Provided strategic advice on deal structure and term negotiations

Successful Outcome

• Multi-program collaboration with Servier executed before the 2017
  JP Morgan Healthcare Conference, a key strategic objective for Pieris
• Pieris received EUR30 million ($31.4 million USD) upfront and up to EUR1.7 billion ($1.8 billion USD) in total success-based payments and up to double-digit royalties
• Deal included Pieris’ dual checkpoint inhibitor (PRS-332), four additional committed bispecific programs, and an option for eight programs in total, with retained US rights on select programs
• Created significant market value for Pieris and helped validate Pieris’ IO platform, providing a catalyst for future value creation
• Deal structure and breadth of Pieris’ platform allows for additional, complementary IO deals to occur with other interested parties

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