Pfizer to buy 8.1 per cent stake in Valneva

Pfizer has agreed to invest 90.5 million euros ($95.24 million) to buy an 8.1 per cent stake in French vaccines company, as the companies announced developments in their partnership to tackle the Lyme disease.

Pfizer will buy the stake in Valneva, which is also working on its COVID-19 vaccine, at a price of 9.49 euros per share, via a reserved capital increase.

Valneva will use the proceeds from Pfizer’s equity investment to support its phase-III development contribution to the Lyme disease programme.

Valneva and Pfizer also updated the terms of their collaboration and licence agreement which they announced on 30th April, 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 Thomas Lingelbach, Chief Executive, Valneva.

As previously announced on 26th April, 2022, Pfizer plans to initiate the phase-III study of VLA15 in the third quarter of 2022, they added.

Under the revised deal, Valneva will now fund 40 per cent of the remaining shared development costs compared to 30 per cent before.

Pfizer will pay Valneva tiered royalties ranging from 14 per cent to 22 per cent. In addition, the royalties will be complemented by up to $100 million in milestones payable to Valneva based on cumulative sales, added the companies.

Edits by EP News Bureau