Pfizer, the world’s largest pharmaceutical company, has decided to invest 90.5 million euros ($95.24 million) in Valneva, a French vaccine company, as the businesses reported further advancements in their Lyme disease collaboration.
Pfizer will purchase a 9.49 euro per share interest in Valneva, which is also developing the COVID-19 vaccine, through a restricted capital increase. The profits from Pfizer’s equity investment will be used by Valneva to enhance its Lyme disease Phase 3 development commitment.
Valneva and Pfizer also revised the conditions of their collaboration and licence agreement for the Lyme disease vaccine candidate VLA15, which they announced on April 30, 2020. Pfizer’s investment in Valneva exemplifies the excellence of their work together over the last 2 years and is a wide acceptance of Valneva’s vaccine expertise, said Thomas Lingelbach, CEO of Valneva.
Pfizer aims to begin the Phase 3 research of VLA15 in the third quarter of 2022, as previously stated on April 26, 2022. Valneva will now finance 40% of the remaining shared development expenditures under the amended agreement, up from 30% previously. Valneva will get tiered royalties ranging from 14% to 22% from Pfizer. According to the companies, the royalties will be supplemented by up to $100 million in milestone payments to Valneva based on cumulative sales.