US healthcare giant Pfizer said it will buy an 8.1% stake in the French vaccine company for 90.5 million euros ($92.24 million), and the two companies announced new developments in their partnership to tackle Lyme disease.
Pfizer will buy shares in Valneva, which is also developing its own coronavirus vaccine, at €9.49 per share by raising capital allocated to the transaction, sending Valneva shares up significantly in early trade by 14.5% to €9.09.
Valneva will use Pfizer’s investment proceeds to support its contribution to the development of the Phase III Lyme disease treatment program, and Valneva and Pfizer have updated the terms of their Collaboration and Licensing Agreement for the Lyme Disease Vaccine, which was announced on April 30, 2020.
Pfizer plans to begin a phase 3 study of its prospective VLA15 Lyme disease vaccine during the third quarter of 2022, and Valneva will have to fund 40% of its remaining joint development costs under the revised deal, compared to its previous funding of about 30% of costs.
Pfizer will pay sequential revenue to Valneva from 14% to 22%, and proceeds to Valneva will be complemented by up to $100 million based on cumulative sales. Read More [Pfizer to Pay $11.6 Billion to Buy Biohaven].