Letter from the CEO

At the start of the second quarter 2012, Pieris announced the presentation of exciting preclinical data from our PRS-110 c-Met antagonist program at the prestigious American Association for Cancer Research Annual Meeting. These data show the significant and unique benefits provided by the Anticalin approach to this increasingly validated oncology pathway and demonstrate the company’s ability to develop compounds that are truly innovative and designed to become best-in-class treatments for patients.  This positive data-driven news follows our announcement in February of the award of a BMBF grant to underwrite Euro 1 million of costs to conduct core biomarker analysis for this program.

This is now the second proprietary pipeline program to receive material grant funding within the past half-year,

following the Euro 6 million FP7 grant that will fund the majority of costs to propel our PRS-080 hepcidin antagonist through a Phase Ib study.  Pieris has continuously sought to balance the investment from its shareholders with non-dilutive financing in the form of grants and revenue from our discovery and development partnerships.  Indeed, in the past 30 months, Pieris has brought more than Euro 25 million in grant and partnership funding into the company.  This achievement underscores our belief in the value of the Anticalin technology and our ability to manage the costs and risks inherent in drug development.

The overall objective of the company, to swiftly and effectively bring novel treatments to patients with unmet medical need, remains on track.  We strive to continue our success on both the development and financial fronts as the year progresses and look forward to keeping you informed of our progress.