PARIS (Agefi-Dow Jones)–The biotechnology company Valneva announced on Monday that the American pharmaceutical company Pfizer would acquire 8.1% of its capital for a total amount of 90.5 million euros.
Pfizer’s investment will be made at a price of 9.49 euros per share, through “a reserved capital increase intended to strengthen the strategic partnership concluded between the two companies on Lyme disease”, indicated the company in a press release. This investment should be effective on June 22, 2022, Valneva said.
“Valneva expects to use proceeds from this investment to fund part of its contribution to Phase 3 of the Lyme program,” which Pfizer expects to launch in the third quarter, the company added.
Valneva and Pfizer have amended their collaboration and license agreement regarding the Lyme disease vaccine candidate, VLA15. “Valneva will now finance 40% of the costs of Phase 3, compared to 30% in the initial agreement” concluded in April 2020, Valneva said. For its part, “Pfizer will pay Valneva increasing royalties ranging from 14% to 22%, against royalties starting at 19%” initially planned, said the French company.
“The royalties will be supplemented by milestone payments of up to $100 million, payable to Valneva based on cumulative sales,” Valneva added.
“Other payments related to the development stages and the start of commercialization remain unchanged, i.e. $168 million, including a $25 million payment to Valneva upon the initiation of Phase 3 by Pfizer”, recalled the company. society.
Subject to the successful initiation and execution of the planned Phase 3 study for VLA15, Pfizer could submit a biologics marketing authorization application to the Food and Drugs “as early as 2025”. Administration (FDA), the American health authority.
Lyme disease is a systemic infection caused by bacteria transmitted to humans by ticks.
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed: VLV
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June 20, 2022 01:52 ET (05:52 GMT)