The American laboratory Pfizer has invested 90.5 million euros in the purchase of an 8.1% stake in the French biotech company Valneva, that will use the funds received to promote the development of its program on the Lyme’s desease.
The injection of Pfizer funds into Valneva was carried out through an increase in reserved capital, with an average purchase price of 9.49 euros per share, 19.5% more than the one marked at the close of last Friday. The shares of the French company were revalued by 15.7% this Monday on the Paris Stock Exchange.
Also, within the framework of this agreement, Valneva and Pfizer have updated the terms of their collaboration, that they announced on April 30, 2021. In this way, Valneva will finance from this moment 40% of the remaining shared development costs compared to 30% of the initial agreement, while Pfizer to pay staggered royalties to Valneva which will range from 14% to 22%, compared to the 19% threshold set in the initial agreement.
In addition, these royalties will be supplemented by the payment of up to 100 million dollars based on accumulated sales. Other agreed development and commercialization milestones remain unchanged, of which 168 million dollars (160 million euros) remain pending.
“This agreement will contribute to our investment in the Phase 3 study while limiting the impact on our cash position,” declared Thomas Lingelbach, CEO of Valneva, for whom Pfizer’s investment highlights the quality of the work done together over the last two years and is a strong recognition of Valneva’s experience in vaccines.