Pfizer to buy stake in French vaccine company 

The healthcare giant has agreed to invest €90.5m to buy an 8.1% stake in Valneva as the companies announced developments in their partnership to tackle Lyme disease.

Valneva will use the proceeds from Pfizer’s equity investment to support its Phase 3 development contribution to the Lyme disease program.

Healthcare giant Pfizer PFE.N has agreed to invest €90.5m to buy an 8.1% stake in French vaccines company VLS.PA, as the companies announced developments in their partnership to tackle Lyme disease.

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

Shares in Valneva rose sharply, surging by 14.5% in early session trading to €9.09.

Valneva will use the proceeds from Pfizer’s equity investment to support its Phase 3 development contribution to the Lyme disease program.

Valneva and Pfizer also updated the terms of their collaboration and license agreement which they announced in 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 Valneva chief executive Thomas Lingelbach.

As previously announced in April 2022, Pfizer plans to initiate the Phase 3 study of VLA15 in the third quarter of this year, they added.

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 $100m in milestones payable to Valneva based on cumulative sales, added the companies.

• Reuters