- Pfizer Inc (NYSE: NYSE:PFE) will invest €90.5 million ($95 million) for an 8.1% stake in Valneva SE (NASDAQ: VALN), as the companies updated the terms of agreement for Lyme disease vaccine candidate VLA15.
- Pfizer will buy the stake in Valneva at €9.49/share via a reserved capital increase.
- Valneva will use the proceeds from Pfizer's equity investment to support its Phase 3 development contribution to the Lyme disease program.
- Related: Valneva - Pfizer Post Encouraging Data From Lyme Disease Vaccine Candidate
- Valneva and Pfizer also updated the terms of their collaboration and license agreement announced in April 2020.
- Under the revised deal, Valneva will now fund 40% of the remaining shared development costs compared to 30% before.
- Pfizer will pay Valneva tiered royalties ranging from 14% to 22%. In addition, the royalties will be complemented by up to $100 million in milestones payable to Valneva based on cumulative sales.
- Other development and early commercialization milestones are unchanged, of which $168 million remain, including a $25 million payment to Valneva upon Pfizer's initiation of the Phase 3 study.
- Price Action: VALN shares are up 83.88% at $25.21 during the premarket session on the last check Tuesday.
Read at Benzinga