Pfizer splashes 90 million Euros on a 8.1 percent stake in vaccine maker Valneva

U.S. healthcare giant Pfizer will invest 90.5 million euros ($95.24 million) to buy an 8.1% percent stake in French vaccines company Valvena.

Pfizer and Valvena are looking to partner to tackle the Lyme disease.

Valneva is also working on its COVID-19 vaccine.

Pfizer will buy the stake at a price of 9.49 euros per 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.

Valneva and Pfizer also updated the terms of their collaboration and license agreement which they announced on April 30, 2020 for the Lyme disease vaccine candidate VLA15.

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, added the companies.