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Pfizer agrees on $95m investment to buy an 8.1% stake in Valneva

Pfizer agrees on $95m investment to buy an 8.1% stake in Valneva

Pharma and biotech firm Pfizer have reportedly agreed on investing €90.5 million ($95.6 million) in order to acquire an 8.1% stake in the French biotech firm Valneva SE, with the two having disclosed advancements in their collaboration to prevent Lyme disease.

Each share will be purchased for €9.49 ($9.99) to buy the stake in Valneva via a reserved capital increase. The firm is also working on a vaccine for Covid-19.

The per-share purchase price was decided as per the average closing price of Valneva’s shares on Euronext Paris during the ten days before the date mentioned on their Equity Subscription Agreement.

During the early session of trading, shares in Valneva rose by 14.5% to €9.09 ($9.59).

It is expected that Valneva will be utilizing the investment from Pfizer in supporting its Phase 3 development contribution towards the Lyme disease program.

The French firm, which was expected to fund 30% of the shared development costs, will be now funding 40% of the remaining costs.

Both Pfizer and Valneva have updated the terms of their partnership and license agreement, as well, which were first announced back in April 2020 for the vaccine candidate VLA15 in treating Lyme disease.

Earlier in April, Pfizer had announced its plans to begin the Phase 3 study into VLA15 in the third quarter of this year.

Pfizer will also give Valneva tiered royalties that will range between 14%-22%, as compared to the prior agreement of 19%. Along with the royalties, $100 million will be given in milestones payable according to Valneva’s cumulative sales.

Thomas Lingelbach, CEO of Valneva, stated in a press release that Pfizer’s investment in the firm showcases the quality of work that the two have accomplished in the last two years, and also a strong recognition of the firm’s expertise in vaccine development.

He added that the subscription agreement will add to Valneva’s investment in the Phase 3 study, cutting down the impact on the firm’s cash position.

Source Credit: https://www.foxbusiness.com/healthcare/pfizer-purchase-95m-stake-french-vaccines-company-valneva

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and RunningAfrica. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.