Pfizer agreed to invest 90.5 million euros ($95.24 million) to buy an 8.1% percent stake in French vaccines company Valneva.
The companies announced developments in their partnership to tackle Lyme disease.
Pfizer will buy the stake in Valneva and is also working on its COVID-19 vaccine at a price of 9.49 euros per share, via a reserved capital increase, Reuters reported.
Shares in Valneva rose sharply, surging by 14.5% in early session trading to 9.09 euros.
Valneva will use the proceeds from Pfizer’s equity investment to support its Phase 3 development contribution to the Lyme disease program.
Valneva and Pfizer updated the terms of their collaboration and license agreement which they announced on April 30 2020 for the Lyme disease vaccine candidate VLA15.
“Pfizer’s investment in Valneva highlights the quality of the work that we’ve done together over the past two years and is a strong recognition of Valneva’s vaccine expertise,” said Valneva chief executive Thomas Lingelbach.
Pfizer plans to initiate the Phase 3 study of VLA15 in the third quarter of 2022.
Valneva will fund 40% of the remaining shared development costs compared to 30% before.
Pfizer will pay Valneva tiered royalties ranging from 14% to 22% and the royalties will be complemented by up to $100 million in milestones payable to Valneva based on cumulative sales, added the companies. ZHB
