The Board of Directors is one of the most important elements of a publicly-traded company, as the board makes key decisions regarding major company issues or corporate actions. That said, when a member is added, removed or steps down from the board, you would want to pay attention, as this could change the course of the company’s plans. That in mind, Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS), a clinical-stage biotech company, recently announced the appointment of a new member to its board of directors. When a company appoints a new member to its board of directors, you need to look at the member and examine the person’s background and comments.
Pieris Pharmaceuticals Appoints New Member to Board
Pieris Pharmaceuticals announced that it appointed James Geraghty to its Board of Directors, which brought the total number of directors to eight. Geraghty is considered an industry leader with 30 years of leadership and strategic experience. Additionally, Geraghty has over 20 years of experience as a senior member of executive teams at biotech companies that have developed and commercialized innovative therapies. Prior to Geraghty’s appointment to PIRS board, he was an Entrepreneur in Residence at Third Rock Ventures, one of the leaders in the biotech venture and company-formation fund space.
Moreover, Geraghty serves as the Chairman of the Board of Idera Pharmaceuticals and Juniper Pharmaceuticals. He also serves on the Board of Voyager Therapeutics and Fulcrum Therapeutics, as well as a member of the BIO Ventures for Global Health Board of Directors. That in mind, Pieris Pharmaceuticals Inc selected a member that could add value to the company, and provide a wealth of knowledge to the micro-cap company.
Geraghty stated, “With the upcoming advancement of Pieris’ lead immuno-oncology and respiratory drug candidates into the clinic and its recent strategic partnerships, Pieris is poised to make significant contributions to patients with critical unmet medical needs. I look forward to working with Steve and the rest of the team during this exciting time for Pieris.”
What You Need to Know About PIRS
- Pieris appointed a new member to its Board of Directors, and Geraghty could potentially leverage his experience and help steer the company in the right path of growth.
- PIRS had a 52-week low of $1.30 and a 52-week high of $4.28.
- Pieris Pharma has 41.11M shares floating
- As of May 22, 2017, PIRS was up over 65% over the past month, and just over 180% year to date.
- Pieris Pharmaceuticals has been operating at a loss, and consequently, it does not have a trailing 12-month (TTM) price-to-earnings ratio (P/E). However, the biotechnology industry average TTM P/E was 62.6.
- The company had a price-to-book ratio of 9.4, while the industry average was 6.4.
- PIRS had a TTM price-to-sales ratio of 28.3, which was significantly higher than the biotech industry average of 6.1.
Check out PIRS on the daily chart.
Traders may see the new appointment of an industry expert as a positive catalyst, and it could help drive the company in the right direction. Additionally, some traders may see PIRS as a momentum play, and believe the stock could run higher after returning 68.74% over the past month, as of May 22, 2017.
On the other hand, some traders might be thinking PIRS has moved too far, too fast, and it could potentially mean revert. Additionally, traders may be viewing the stock as overvalued, compared to the biotech industry, when looking at its valuation ratios. However, the stock is a micro-cap, and those using valuation ratios with growth companies should use them with caution. Now, PIRS is near the upper end of the Bollinger Bands, which could be an indication it may be due for a pull back.
Pieris Pharmaceuticals appointed James Geraghty to its Board of Directors yesterday, after the close. Geraghty is considered an expert in the field, and could help PIRS in developing and growing the company. Now, there are two sides to this story, and there are some reasons traders might be bullish on PIRS. Similarly, there are some reasons that might defend a bearish case on the stock, as shown above.