Pfizer to buy 8.1% stake in French vaccine company Valneva

Pfizer said on Monday that it has agreed to buy an 8.1% stake in French specialty vaccine company Valneva for €90.5m, or €9.49 a share.

The two companies already had a Collaboration and Licence Agreement for Lyme disease vaccine candidate VLA15. Pfizer said Valneva will use the proceeds from the investment to support its Phase 3 development contribution to the Lyme disease programme.

Valneva and Pfizer also updated the terms of the collaboration and license agreement they announced on 30 April, 2020. 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. In addition, the royalties will be complemented by up to $100m in milestones payable to Valneva based on cumulative sales.

Other development and early commercialisation milestones are unchanged, of which $168m, including a $25m payment to Valneva upon Pfizer’s initiation of the Phase 3 study.