VALNEVA: PFIZER TO ACQUIRE 8.1% OF THE CAPITAL, THE TITLE CLIMBS
(Reuters) – Valneva jumped on the Paris Stock Exchange on Monday after announcing that the American pharmaceutical giant Pfizer would acquire 8.1% of its capital for a total amount of 90.5 million euros.
The title gains 15.6% to 9.18 euros at 07:41 GMT, the largest increase in the SBF 120 index.
Pfizer will take a stake in Valneva at a price of 9.49 euros per share – a premium of around 19.5% over Friday’s closing price – “through a reserved capital increase intended to strengthen the partnership agreement between the two companies on Lyme disease,” the French group said in a statement.
Once the investment becomes effective on June 22, Valneva plans to use it to finance part of its contribution to its phase 3 study of the Lyme disease vaccine candidate, VLA15.
Subject to successful initiation and execution of the study in this phase, Pfizer could submit a Biologics Marketing Authorization Application to the U.S. Drug Administration (FDA) as early as 2025. , the group said.
Valneva and Pfizer have also updated the terms of their collaboration and licensing agreement for VLA15, with Valneva now funding 40% of Phase 3 costs, up from 30% previously.
Pfizer will pay Valneva escalating royalties ranging from 14% to 22%, up from 19% in the original agreement, in addition to milestone payments of up to $100 million (€95 million).
“Although Valneva is forgoing some of the benefits of VLA15, the changes are positive in our view,” Kempen analysts said in a note, “because they provide the company with greater financial flexibility, which is not not an unnecessary luxury in these markets, and offsets the loss of previously expected short-term revenue from its COVID-19 vaccine.”
(Writing by Elena Vardon, editing by Kate Entringer)