(CercleFinance.com) – Valneva and Pfizer have entered into a stock subscription agreement and updated the terms of their collaboration and license agreement for the Lyme disease vaccine candidate, VLA15.
Pfizer will invest 90.5 million euros (95 million dollars), or 8.1% of the share capital of Valneva at a price of 9.49 E per share, through a capital increase.
Valneva plans to use the proceeds from this investment to fund part of its contribution to Phase 3 of the Lyme program.
Valneva will now fund 40% of Phase 3 costs, up from 30% in the original agreement. Pfizer will pay Valneva escalating royalties ranging from 14% to 22%, up from royalties starting at 19% in the original agreement.
In addition, the royalties will be supplemented by milestone payments of up to $100 million, payable to Valneva based on cumulative sales.
Other payments related to development stages and the start of commercialization remain unchanged, at $168 million, including a payment of $25 million to Valneva upon the initiation of Phase 3 by Pfizer.
Thomas Lingelbach, Chief Executive Officer (CEO) of Valneva, said, ‘Lyme disease is spreading and represents a significant unmet medical need that impacts the lives of millions of people in the northern hemisphere. ‘
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