agreed to invest €90.5 million ($95.25 million) in an 8.1% stake in
to accelerate the two companies’ development of a Lyme disease vaccine.
The American pharmaceutical giant will buy
(ticker: VALN.France) at a price of €9.49 per share, via a reserved capital increase, according to a press release.
Valneva shares, which have fallen more than 62% since January, rose 15.6% in European trading on Monday.
(PFE), which also makes one of the most widely used Covid-19 vaccines, is down more than 21% so far in 2022. Valneva is also working on a Covid vaccine.
The French firm said it would use
investment to support its contribution to the Phase 3 development of the Lyme disease vaccine VLA15, which is expected to begin in the third quarter of this year.
Lyme disease is a bacterial infection that can be transmitted to humans by infected ticks. VLA15 is the only vaccine candidate currently in clinical development, Pfizer said.
As part of the investment agreement, Pfizer and Valneva amended the VLA15 collaboration and license agreement, originally announced in April 2020. Valneva will now fund 40% of the remaining shared development costs, compared to 30% in the original agreement.
In addition, Pfizer will pay Valneva tiered royalties of up to 22%, which will be supplemented by up to $100 million in milestones payable to Valneva based on sales, the companies added.
Write to Lina Saigol at [email protected]