AstraZeneca is to collaborate with US-based Pieris Pharmaceuticals to develop novel inhaled drugs for respiratory diseases. The deal will leverage Pieris’ Anticalin platform and could be worth up to $2.1 billion.

Anticalin molecules are engineering proteins that are able to mimic antibodies but they are smaller than monoclonal antibodies, offering the potential of direct delivery to the lung.

Pieris will be responsible for advancing its preclinical lead candidate - PRS-060 – into Phase I clinical trials this year. PRS-060 is an Anticalin against interleukin-4 receptor alpha (IL-4Ra) with potential in asthma. AstraZeneca will fund all clinical development and subsequent commercialization programs and Pieris has the option of co-development and co-commercialization in the US from Phase IIa onward.

The parties will also work together to progress four additional novel Anticalins against undisclosed targets for respiratory disease.

As part of the financial terms, AstraZeneca will make upfront and near-term milestone payments of $57.5 million but Pieris could receive as much as $2.1 billion from development milestones and commercial payments, as well as tiered royalties on sales of any products commercialized by the UK-headquartered pharma.

“Our alliance with Pieris adds an important new modality to our respiratory portfolio and builds on our scientific expertise in inhaled formulation technologies,” said Mene Pangalos, executive vice president, innovative medicines and early development biotech unit and business development at AstraZeneca.

Stephen Yoder, president and CEO of Pieris, added that AstraZeneca’s expertise will maximize the potential of PRS-060 and other inhaled Anticalin molecules to become valuable assets for both companies.