Pfizer Inc (NYSE: PFE), on Tuesday, doubled down on its partnership with Valneva SE (NASDAQ: VALN) to develop a vaccine for Lyme disease. Shares of the French biotech firm are up nearly 100% this morning.
Pfizer took up an 8.1% stake in Valneva SE
The American multinational spent $95 million to take up an 8.1% stake in Valneva. The European company will use this money to support the late-stage clinical trial of VLA-15; a candidate vaccine for Lyme disease.
The Phase III trial will begin in the third quarter of 2022. In the press release, Valneva CEO Thomas Lingelbach said:
Pfizer’s investment highlights the quality of work we’ve done together and is a strong recognition of our vaccine expertise. This will contribute to our investment in the Phase 3 study while limiting the impact on our cash position.
Other changes made to the terms of collaboration
Pfizer Inc is also up nearly 3.0% on Tuesday. It’s been working with Valneva on Lyme disease since April 2020, but the two companies announced a few changes to the terms of their collaboration today.
Valneva will now fund 40% of the remaining shared development costs compared to 30% in the initial agreement. Pfizer will pay Valneva tiered royalties ranging from 14% to 22%, compared to royalties starting at 19% in the initial agreement.
The updated agreement also made Valneva eligible to receive milestone payments worth up to $100 million based on cumulative sales. Pfizer expects to seek FDA approval for VLA-15 in 2025.
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